Early in my IT career, a friend who owns a software company told me he had been informed by a peer that he wasn’t charging enough for his software. This peer advised him to adopt a “flinch-based” approach to pricing. He said my friend should start with a base licensing cost that meets margin requirements, and then keep adding on other costs until the prospective customer flinches. My friend found that approach offensive, and so do I. I don’t know how common the “flinch-based” approach is, but as a purchaser of technology goods and services I learned to flinch early and often. I was reminded of this “flinch-based” approach when evaluating some traditional enterprise storage products. Every capability was an extra-cost “option”: each protocol, each client connection, each snapshot feature, each integration point. Happily, this a-la-carte approach to licensing is becoming a thing of the past as vendors embrace all-inclusive licensing for their all-flash array products.
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