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- From: BRYAN@wvnvm.wvnet.edu (Jerry Bryan)
- Newsgroups: bit.listserv.ibm-hesc
- Subject: Re: (no subject given)
- Message-ID: <92315.230224BRYAN@wvnvm.wvnet.edu>
- Date: 11 Nov 92 04:02:24 GMT
- References: <IBM-HESC%92111007375701@PSUORVM.CC.PDX.EDU>
- Lines: 49
-
- In article <IBM-HESC%92111007375701@PSUORVM.CC.PDX.EDU>, Fred Dwyer
- <FDDWYER@RHQVM21.VNET.IBM.COM> says:
- We believe that
- >if anything, HESC pricing needs more granularity, not less.
-
- Hmm. This can quickly become a religious issue, and I can easily
- argue either side of the question. This is not necessarily my
- installation's position, not even my own, but let me play devil's
- advocate just for a moment.
-
- It seems to me that the HESC is getting far away from its original
- "look and feel", and is becoming simply a large educational discount.
- In its original incarnation, the HESC served (at least) two purposes:
- 1) for software an installation would have run anyway, it made the
- software less expensive, and 2) it allowed an installation to run
- software it would not otherwise have run. In either case, the
- advantages to the installation were more and better software at less
- cost, and for IBM more use of IBM hardware and software, with
- attendant current revenue (but see below) and potential
- future revenue due to faculty and students trained on IBM hardware
- and software.
-
- Regrettably, IBM views the HESC as a net loss with respect to current
- revenue. This point of view totally ignores my item #2 above, and
- ignores the hardware revenue associated with both my item #1 and item #2
- above. I believe that IBM should evaluate the HESC in terms of future
- revenue, and also in terms of current revenue, where the absence of the
- HESC would result in loss of current hardware revenue and loss of
- HESC software revenue for software that otherwise would not be run at
- all.
-
- As I understand it, IBM product managers assume (quite incorrectly
- in my opinion) that without the HESC, they would get all the revenue
- for all the HESC products. My opinion is that without the HESC, virtually
- no installation would run what you might call "marginal products"
- (my item #2), and that virtually every installation would be involved
- in even more consideration of downsizing than they are already doing,
- and would be getting rid of software even in my category #1.
-
- What all of this has to do with granularity is that the courser the
- granularity, the less association there is between the cost to the
- installation for the HESC and the amount of software which is run.
- With such cost insensitivity, there is more incentive for installations
- to run IBM software and hardware, and less incentive to downsize to
- (possibly) non-IBM hardware and software. The customers get more
- software for less money, and IBM has more customers and more revenue.
- This is a win-win situation if ever I saw one. Therefore, I argue
- (for today, at least) to return the HESC to its roots, and to provide
- courser granularity, not finer.
-