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Pricing 2

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  • Pricing 2

    I will use alpha 5 for a web site that I will be hosting and maintaining that is data driven. The cost of the application server is in the ballpark for this usage, especially if a reasonable ISP is found to host sites. I use myhosting.com for my MSSql work so about $25/mo is the break even point.

    I will not be developing a planned product for distribution because of the pricing and licensing structure. I too was hoping for a 'runtime' version for sites where constant maintenance was not an issue (ie: no data definition changes after deployment). I had been hoping to be able to sell a product with a runtime that would allow whatever level of concurrent access I had paid for (ie: 5 users, web or networked).

  • #2
    RE: Pricing 2

    Hi Donald,

    I think your situation deserves support.

    But there is also a marketing side to it.
    If Alpha would be able to get the WAS license into the Runtime fee they would be able to draw the complete market to them. That could also be a consideration for them to do it.

    Regards,

    Marcel

    Comment


    • #3
      RE: Pricing 2

      Marcel,

      I sort of get your argument but with some added comments.

      With the current unlimited runtime options available, this enables the developer to deploy an application across a network allowing access to the app for anyone on that network. I can see the correlation for a company to use it's intranet and WAS thus enabling anyone within the intranet access for a web interface.

      However, that same WAS could then be used on the web giving access to anyone with an internet connection. Is that not a totally different ball game?

      Maybe I am totally off base here but I see it as 2 totally different scenarios, the first of which correlates to an unlimited runtime (without the overhead of installing the software on each workstation) and the second being a whole different ball game.

      Does this make sense? It does to me but then again I am no expert?

      Just my thoughts from across the water, the English Channel that is :-)

      Regards

      Glen
      Glen Schild



      My Blog

      Comment


      • #4
        RE: Pricing 2

        I have been reading all the "pricing" threads and am now more confused than before! If I have a WAS licence (which I do!) and install that licence on my server with A5V6, I can run mulitiple applications e.g. I have 5 customers all with their applications hosted on my server, I only need one WAS and one licence to run this?

        Comment


        • #5
          RE: Pricing 2

          Chris

          That is correct, the license is per server.

          Regards

          Glen
          Glen Schild



          My Blog

          Comment


          • #6
            RE: Pricing 2

            Thanks Glen because that is what I intend for the customers who wish to access their data online.

            Comment


            • #7
              RE: Pricing 2

              Hi Glen,

              Yes, that is true. It is a different ballgame.
              Though I do see similarities with the Runtime issue.

              With the Runtime strategy, one could develop an application which costs $10.000 development costs.
              Lets assume there are $2.000 license costs involved totalling it to $12.000. You can earn that back by selling 10 products for $1200 each or you can choose to sell 1000 for $12 each. That's all fine.

              Now the WAS comes. Suppose you would like to upgrade your standard software with internet capabilities.
              You would need a WAS for every server, thus every customer, thus every product (in this example).
              The product priced at $1200 would be raised to $1899 (which is 158%) and the product priced at $12 would be raised to $711 (which is a humble 5925%).

              Needless to say you can not implement the new features in the $12 product. You can in the $1200 product, if the customer will accept 158% price raise which you could be able to communicate having then internet capabilities.
              But that will not be possible for the $12 product.
              Of course the price of $12 is ridiculous, I know that, but I made at black and white to show the difference.
              And it is not only a price issue either.

              When I sell of shelf in a store, I could not create a ready-to-use product because the customer would still need a license for the was.

              So there is more then one issue here that worries me.

              Greetings,

              Marcel

              Comment


              • #8
                RE: Pricing 2

                Marcel

                I suppose another question would be, just who would benefit from having an application internet based as opposed to extranet based? An instant reaction would be the larger corporate client who arguably would treat a $699 additional investment as acceptable for the size of the project.

                But, I then consider my own scenario where I do not market a product to sell off the shelf but use the system for the work that I do for clients. In my situation I can see a desired route towards going internet based but this would only be for one client initially and the only way this would work would be if I hosted the WAS myself. That would then give me the ability to add other clients to the same server, ultimately cutting the cost but in the first instance I would have to pass on the cost to this client and before doing so would have to convince them that the investment would be worth it.

                This whole area provides a massive expansion in potential revenue streams and I guess as with any "new" initiatives will take time to comprehend.

                One thing I do know is that one client I work with created a web based service for it's clients which was database driven. That service cost them a serious amount of money to create. The backend database functionality costings were built into the overall spend and a cost of 699 would have easily been incorporated into that!

                Regards

                Glen
                Glen Schild



                My Blog

                Comment


                • #9
                  RE: Pricing 2

                  Glen,

                  Your last point resonates with me.

                  What's missing from these 'pricing' threads is any discussion of the cost to deploy equivalent functionality with other vendor's products. Instead of focusing on the cost to deploy an internet based database solution with WAS, why isn't anyone considering the savings that WAS seems to offer? Isn't this what will drive the pricing in the marketplace in the end? If the equivalent functionality is available through other products at lower cost won't that be reflected in reduced sales at Alpha?

                  I don't consider myself knowledgeable in the web app development business, but it seems to me that if the pricing structure is lower (significantly lower?) than the cost of competitive products (singly, or in combination) then why shouldn't Alpha derive a return on its investment? If the cost to deploy is more than the benefits to be derived from deployment no one needs to purchase, right? If the cost to deploy is significantly below the current marketplace offerings, why would anyone think Alpha would be interested in lowering it further?

                  -- tom

                  Comment


                  • #10
                    RE: Pricing 2

                    Hi Glen,

                    Hmm. That is right. I do see the point you are trying to make. And of course there is still the question whether web based functionality would mean something in low-priced of shelf applications.
                    But that choice now needn't be made anymore because it is already made.

                    Of course when you create large applications for companies with internet capability they can enroll the $699 easily into their budget. I fully see that.

                    My worries are not for those clients.
                    My worries are for those who have a small budget and buy my product of shelf against low cost.

                    But indeed, you are right, would you use the Webfunctionality there ?
                    Maybe, maybe not. I don't know yet.
                    Question now is whether it is worth while to seriously do research for the answer to that question if you know upfront that it will be to expensive to implement ?

                    There are more points of view to this then mine only though, don't think I don't realize that.

                    Still, it is a good discussion.

                    Regards,

                    Marcel

                    Comment


                    • #11
                      RE: Pricing 2

                      Tom,

                      As always sharp deduction.

                      If Alpha can develop and market a product that is better or at least as good as the competitions product AND cheaper, they did a better job then the competition.
                      (If that is a good summary of your statement).

                      Yes. That is to the point and correct.

                      The product can be better then competition, lower priced, and still unavailable to a section of the market.
                      You can say "Well, not everybody can buy a mercedes either". That's true, but you could also seek for a solution where the technology would become available to that section of the market as well, thus increasing sales possibilities, maybe with some limits implemented.

                      If competition does not do that, the Alpha product will not only be better and lower priced but also available to the whole market which would improve sales changes above those of the competition. That is in my humble opinion it would.

                      Of course the decisions are not with me but to be made by the Alpha Board, but I think worries can be ventilated.

                      Kind regards,

                      Marcel

                      Comment


                      • #12
                        RE: Pricing 2

                        Hi Marcel,

                        Utility computing and ASP (application service providers) is becoming more and more of a reality, design an application for the web and host your self in-house or (COLO) and charge a monthly fee 'best return" to use the Application.

                        19.95 A month X 35 customers 698.25 a month, the potential for revenue is enormous in the example above
                        you make the 699.00 back in one month, of course you would have to use different figures to calculate what your monthly service would be.

                        Just my 2 cents
                        Ray

                        Comment


                        • #13
                          RE: Pricing 2

                          Just an FYI and slightly off subject, Alpha no longer lets you purchase an unlimited runtime. It is now a custom runtime and pricing will be calculated upon request.

                          Comment


                          • #14
                            RE: Pricing 2

                            I use IPowerWeb and hope they will get setup for alpha if any is needed. 125 a year is cheap i think and that includes my domain name.

                            Dave
                            Dave Mason
                            dave@aldadesktop.com
                            Skype is dave.mason46

                            Comment


                            • #15
                              RE: Pricing 2

                              I thought the point of using Alpha products was to make our lives and the lives of our customers easier. WAS, based upon function, has the ability to do that for almost any of our customers. But, if the license model doesn't allow us to use the product in the best way we see fit for our customer, then it won't sell and Alpha has failed those potential customers.

                              For example, my customers are the 5-20 user network at a church or other non-profit. They won't be able to justify a $699 increase to my regular app price. Then why not move to an ASP model and host the apps myself? Because I don't think that is best for my customers and I don't think I should be forced into something that I don't think is best for them. And why make it more difficult than it has to be just because of a decision on the licensing.

                              Comment

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