#WUTIL and MS-DOS 3.10
24-Aug-90 08:10:41
Sb: #21309-#WUTIL and MS-DOS 3.10
Fm: Bill Mayhew [VAX/DECPC] 76702,502
To: Roy Pasini 70516,1007
Mike,
No… in the market you mention ($5-10K product price with $2K
support/year) an escrow agreement is not impractical at all.
I'm not aware that there are many (any? well I guess there is at least
one!) PC-class products in that price range. Heck, that's the same price
range (higher, even) as our VAX-based software, and we certainly do escrow
agreements on that.
The problem arises with the under-$1K, maybe even under-$2K product
range, which encompasses… what would you guess… maybe 99% of the PC
software products in the world? In that range I don't think an escrow
agreement is practical.
I also think very few people would be willing to spend $5-10K for a PC
software product (I assume we're talking one or two copies here, not
dozens). If that assumption is wrong, then my company needs to re-evaluate
its decision to stay out of the PC software market. The only way we could
provide a decent product to our small vertical niche with adequate support
would be if we could charge that type of price, and this is the first I've
heard that such a thing is, in fact, viable in the PC world. The
prospective customers we've spoken to have blanched at that price and have
said they would hack something together themselves with a dBASE clone or
with BASIC, even though they have not the slightest familiarity with
either, rather than spend that type of price on a hardware platform that
they've put $2-4K into.
-Bill