Pricing and the metrics that matter

31 07 2009

Previously, we engaged the topic of the metrics you might choose as the basis of your pricing and how the evolution of technology will disrupt your well-laid plans.  This is especially true in software and hardware, but can also be found in other areas such as telecommunication or Internet services.

Businesses tend to manage new technology or legislation very closely.  Executive positions and departments rise up around a new technology and then get re-focused as that technology is commoditized.  Think about what “IT” means today vs. 20 years ago.  It might have been called IS, MIS, or “Information Systems” back then.  The role of IT used to pertain to mainframes, networking etc. but has grown to encompass cell phones, voice over IP services, laptop support, managed software deployments, cybersecurity etc.

The government can create new positions involuntarily within a business as well.  There are now “Chief Compliance Officers” (i.e. “guy in charge of going to jail”).  But, as these roles become more habitual and the variability or costs become reduced, these roles in an organization can shift or dissolve.

Licensing metrics: Rules Patterns

This is a set of observations I’ve collected over the years in studying and theorizing about what metrics to use for software pricing and licensing.  The only thing that can help deal with technological or market evolution is have a plan around changing your licensing scheme.  When you have those discussions, keeping these things in mind may help.  Here we go:

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Windows Home Server + Live Mesh = Nice

21 07 2009

What I’m about to discuss is not recommended.  I know that Windows Live Mesh is not designed to run on Windows Server 2003 or Windows Home Server.  So, if you do this, know that your mileage may vary (YMMV) and that you are taking a risk.  It is up to you whether that risk is acceptable or not.

Now, on to the good stuff…

Windows Live Mesh

If you don’t know what this free service from Microsoft is, you should check it out.  It is absolutely essential for anyone that manages multiple computers for their job.  Meaning either you switch between computers frequently (like when I go from my Tablet PC to my Netbook), or you want to ensure that multiple people have the same files on their computers without actually making any effort.

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Pricing, metrics and evolution (#3)

9 07 2009

So far I’ve talked about how pricing is a mix of several elements which involve math, science, intuition and emotional intelligence.  At some point, these things come together and you have to divide up what you’re selling and assign a suggested quantity of money that should be exchanged for each quantity of your product.

For some products, sizing or metrics may be determined by the market standards (e.g. existing products, packaging, shelf space) or by some other decision designed to garner a net impression (e.g. 100 calorie snack packs of food or beverage).  Consumer packaged goods have a whole pricing paradigm unto themselves versus pricing a “virtual” product or service.

I’ve heard that individuals will typically undervalue their own skills or services when they ask for compensation versus letting the recipient pay them.  However, I don’t believe that’s true for business transactions.  Especially when it comes to software, cable TV, and cell phone plans. 

Certainly in the software sector, many customers believe that the pricing is out of line with the value they receive.  Perhaps that’s because the licensing terms don’t match their expectations very well.

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Windows copy and paste rants and raves

6 07 2009

Ever since Windows NT 4, I have had an issue with a very simple operation… copy and paste.  It may have existed prior to NT4, but that’s the OS where it started to matter to me.

It’s not something obvious like, resuming an interrupted transfer or having the progress bar be better integrated into the status of the files being copied (e.g. indicate they are in process or in queue so you don’t accidentally edit or delete them).

I can’t necessarily call this a bug, but it certainly is a pronounced behavior that exists today in Windows Vista and Windows 7.  It’s quite simple, and I’m going to talk about some of its effects. 

The steps to repeat the behavior are easy:

  • Multi-select several files (say file1.txt, file2.txt, and file3.txt)
  • Copy
  • Paste them into a new location

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