On Thu, 20 Feb 2003 10:41:05 -0800, Fargusson.Alan wrote:
>I don't really want to defend IBM pricing, but gross margin is
>not the same as profit.  It is much more expensive per customer
>to maintain software that has a small installed base than software
>that has a large installed base.  The number of bugs found is
>only slightly less for a small installed base.

That being the case, wouldn't it make sense for IBM to try to
maximize the size of the installed base?  And wouldn't better
pricing help in that regard?

I'd also guess that whether I'm running on a small box or a
very large box, the cost for maintaining the software I run will
be the same.  So why do they charge me more if I buy a bigger box?

Of course, I could be totally clueless on these issues (nothing
new for me).  So feel free to ignore this.

-- Stephen


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