Licensing of Enterprise Java Software

Discussion in 'Java' started by Michael, Feb 20, 2007.

  1. Michael

    Michael Guest

    I have produced a piece of Java enterprise software (using only Java and
    open-source components) and I considering my potential options when it comes
    to selling and licensing the product. It is a business critical/core
    application for certain finance-related companies - a kind of specialised
    CRM if you like.

    I have a potential customer who has expressed an interest in the application
    and has enquired about the cost of the application. His company has around
    25 phone operators around 5 specialist workers who would be using this
    application full-time.

    I am unsure of the pricing model I should use. There are two things that
    make this difficult for me:

    1) I've never priced such a system and also have limited experience of such
    systems from the buyer's perspective

    2) Our first client will essentially be a test-bed for the application,
    therefore it should be discount accordingly


    I have thought of a couple of potential pricing models:

    1) Low installation/initial cost (£10-15k?), support based on one
    "full-time" person per year (approx £35k per year?).

    2) Higher initial cost (£50k?), cheaper support (£20k per annum?)

    Which of the above would you recommend? Any other models you would suggest?


    Also, should I charge on a per seat basis? e.g. sell 50 seat licenses
    intially, and charge per additional seat license? Is a seat license charge
    typically per year or permanent? I feel uncomfortable with charging on a
    per-seat basis is because the cost will increase disproportionately highly
    for the buyer in comparison to me e.g. a single extra £800 annual seat
    license will not cost me anywhere near that amount per year in additional
    work.

    Any feedback at all would be appreciated. Pricing models and examples would
    be fantastic. Particularly for Java/open-source applications.

    Many thanks in advance.

    (cross-posted comp.lang.java.programmer and comp.software.licensing)
     
    Michael, Feb 20, 2007
    #1
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  2. In article <WrDCh.13804$>,
    "Michael" <> wrote:

    Michael:

    You should post this question for the folks over at SoftwareCEO's forums:

    http://www.softwareceo.com/forums/index.php

    They have folks who do the pricing side of things ALL the time.

    Good luck!

    ~Jeff
    --
    Enhance your knowledge of software licensing with
    the Software Licensing Handbook, buy now from:
    www.licensinghandbook.com
     
    Jeffrey Gordon, Feb 21, 2007
    #2
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  3. Michael

    Michael Guest

    "Jeffrey Gordon" <> wrote in message
    news:...
    > In article <WrDCh.13804$>,
    > "Michael" <> wrote:
    >
    > Michael:
    >
    > You should post this question for the folks over at SoftwareCEO's forums:
    >
    > http://www.softwareceo.com/forums/index.php
    >
    > They have folks who do the pricing side of things ALL the time.
    >
    > Good luck!


    Thanks Geoffrey. I've posted a question on their forum.
     
    Michael, Feb 21, 2007
    #3
  4. Michael

    Michael Guest

    "Michael" <> wrote in message
    news:531Dh.10975$...
    > "Jeffrey Gordon" <> wrote in message
    > news:...
    >> In article <WrDCh.13804$>,
    >> "Michael" <> wrote:
    >>
    >> Michael:
    >>
    >> You should post this question for the folks over at SoftwareCEO's forums:
    >>
    >> http://www.softwareceo.com/forums/index.php
    >>
    >> They have folks who do the pricing side of things ALL the time.
    >>
    >> Good luck!

    >
    > Thanks Geoffrey. I've posted a question on their forum.


    I mean Jeffrey! :)
     
    Michael, Feb 21, 2007
    #4
  5. In article <w31Dh.10976$>,
    "Michael" <> wrote:

    > "Michael" <> wrote in message
    > news:531Dh.10975$...
    > > "Jeffrey Gordon" <> wrote in message
    > > news:...
    > >> In article <WrDCh.13804$>,
    > >> "Michael" <> wrote:
    > >>
    > >> Michael:
    > >>
    > >> You should post this question for the folks over at SoftwareCEO's forums:
    > >>
    > >> http://www.softwareceo.com/forums/index.php
    > >>
    > >> They have folks who do the pricing side of things ALL the time.
    > >>
    > >> Good luck!

    > >
    > > Thanks Geoffrey. I've posted a question on their forum.

    >
    > I mean Jeffrey! :)


    No problem. I saw the post. I'm sure there will be some suggestions
    there for you soon.

    :)

    ~Jeff
    --
    Enhance your knowledge of software licensing with
    the Software Licensing Handbook, buy now from:
    www.licensinghandbook.com
     
    Jeffrey Gordon, Feb 21, 2007
    #5
    1. Advertising

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