Sunday, May 11, 2008

Avoiding the pitfalls of rigged software pricing

Software vendors are not in business to give away their software for free, or virtually free. And recently there have been a rash of companies who seem to be doing just that. The problem? Their software isn't even close to free, but the bulk of their pricing is hidden.

So, it is important to keep your eyes open and ask the right questions. For example:

  • Is the software on a per-seat or per-developer licensing basis? If so, how many seats will you need?
  • Is it all-in-one, or do they offer modules. If they offer modules, how many of those will you need to be effective?
  • Is there a "mandatory" annual maintenance cost for these "free" pieces or "low-cost" modules?
  • How much of a performance-hog is the solution? Low-cost software that requires you to purchase $50,000 in hardware is not low-cost
Click here for m-Power's unique pricing structure as well as a few more pricing considerations you should consider.


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