Thank you for sharing this Thomas....it is brilliant...being able to 
articulate the advantages of open source in a "sales" scenario as 
clearly as you have in this example is of tremendous value.

Joseph

Thomas Beale wrote:

> But in the end the argument that they understood was this:
> - every piece of software has a total cost over its lifetime. It is 
> commonly accepted that the build cost to first deployment is roughly 30% 
> and that the cost of maintenance and enhancement over the remaining life 
> of the product is 70% (obviously this varies but it's a pretty common 
> figure given in the literature).
> - so you (the customer) are paying for 30% of the total cost, upfront 
> for a generic component.
> - we (the builder) pick up 70% of the cost, in an incremental ongoing 
> fashion.
> - You get free access for the life of the product.
> 
> Now, if we just charge reasonable contracting rates to get the thing 
> built, the price the customer pays is the price of building it. But what 
> they get is a lifetime of use, including all updates, upgrades etc etc.
> 
> This is all obvious to people on this list, but not to most corporate 
> customers. I don't know if this particular way of justifying open source 
> in contracts is commonly used or described in the open source 
> literature, but for convincing hard-nosed businesses who are most 
> interested in monetary arguments, it works quite well.
> 
> - thomas beale
> 


------------------------ Yahoo! Groups Sponsor --------------------~--> 
You can search right from your browser? It's easy and it's free.  See how.
http://us.click.yahoo.com/_7bhrC/NGxNAA/yQLSAA/W4wwlB/TM
--------------------------------------------------------------------~-> 

 
Yahoo! Groups Links

<*> To visit your group on the web, go to:
    http://groups.yahoo.com/group/openhealth/

<*> To unsubscribe from this group, send an email to:
    [EMAIL PROTECTED]

<*> Your use of Yahoo! Groups is subject to:
    http://docs.yahoo.com/info/terms/
 


Reply via email to