Oh gee, let me try to respond to the most significant points here.

> Charles Mills argues in defense of software product keys for mainframe
software.

No, I argue in defense of vendors getting paid (so they can pay their
employees, their rent, their SHARE sponsorships, their IBM bills, ...). Keys
are just a means to that end. I was asking you how SCRT provided a means to
that end. (As I suspected, you only defend it as a way of implementing MSU
pricing, not as a way of getting paid at all.) Speaking of things that
customers hate -- how about adding MSU pricing to the list, perhaps even
ahead of keys?

> the scope for software product keys is substantially reduced?

Not for vendors that do not MSU price.

> you send your customer a bill for the difference up to the full machine
capacity

Good luck getting paid.

> you pursue available remedies. Including court remedies

That's a winning customer relations strategy!

> even if you still want to stick with them (misguidedly, in my personal
view)

Misguided only if you neglect my other points.

> if you're providing support and maintenance (and I hope you are), machine
serial number details are presumably available in dumps, traces, logs, etc.

We get very few such problems. VERY few. I cannot tell my management that
that is to be our solution.

> add machine serial numbers (where the product *might*
> run) to their product, up front, and in perpetuity

Assuming they run that one box in perpetuity, which does not seem very
likely. Without even considering DR.

> You put the "emergency" key(s) on a couple secured, cloud-hosted sites
(say, at IBM and Google)

Agreed. Good solution. Takes a lot of work to get it right however.

> Slightly function limit the trial version

My management would NEVER agree to "sell" anything but the latest and
greatest. Hard to come up with a generalized subset that fully demonstrates
to non-technical management that we solve their particular problem/wish list
but that is not "good enough" to use for months or years.

> open download for everyone

Including competitors? Does IBM do this for z/OS LOL?

> Give me an idea of what your product does

Not "mine," but here you go:
https://correlog.com/mainframe-security-solutions/sas-correlog-mainframe/ 

> Send them a bill per the terms and conditions of your trial agreement with
the customer

Lots of luck!

> forward it to collections

And abandon ANY chance of ever actually getting the sale! That's the problem
here. Remember, this is a prospect who is saying "we're going to buy your
product ... but my boss has been too busy to review your license." Easiest
solution is for the sales rep to be able to say "well, I can extend you
another ten days but that's absolutely it."

Charles


-----Original Message-----
From: IBM Mainframe Discussion List [mailto:[email protected]] On
Behalf Of Timothy Sipples
Sent: Sunday, April 23, 2017 6:41 PM
To: [email protected]
Subject: Re: Vendor Licensing Frustrations

Charles Mills argues in defense of software product keys for mainframe
software.

OK, let's pursue these arguments a bit. To start off, assuming IBM provides
what the z/OS 2.3 preview announcement describes, isn't it reasonable for
even the most "stodgy" vendor to concede that the scope for software product
keys is substantially reduced? In particular, if your software product key
somehow limits runtime capacity on licensed/authorized machines, why? If
your customer has 100 MSUs licensed on machine serial number 12345 and
actually uses 110 MSUs, you send your customer a list price bill for the
additional 10 MSUs per your contractual agreement. If your customer doesn't
send a SCRT report for some month, you send your customer a bill for the
difference up to the full machine capacity, per your agreement. (If you
don't know the full machine capacity, and if your customer doesn't provide
reasonable evidence of the full machine capacity, then send a bill for the
difference between the largest available capacity IBM currently sells and
the customer's licensed capacity.) If your customer doesn't pay the bill you
think your customer is supposed to pay, then you pursue available remedies.
Including court remedies if necessary. (Which need not cost anything
out-of-pocket since lawyers and bill collectors in many countries operate on
contingency, if/as you wish.)

I hope we can all agree that adoption of SCRT -- assuming IBM delivers what
it plans to deliver -- at least reduces the "problem space." And thus
properly ought to reduce the burden, complexity, and scope of product keys,
even if you still want to stick with them (misguidedly, in my personal
view).

Also, customers understandably might ask, "If it's good enough for IBM and
other vendors (SCRT, no product keys), why isn't it good enough for you?"
Think carefully before you answer. :-) Customers aren't often stupid.
They're going to assign penalty marks to products with keys. Keys increase
their risks and operational costs, and so keys comparatively devalue your
product versus competition. Whether you can still win that competitive
battle depends on the circumstances, but they're "not helpful."

Moving on....

Charles Mills wrote:
>- Is this or some other customer running this product on some CPU that 
>we have no knowledge about?

Maybe. There are a couple answers to that. First, if you're providing
support and maintenance (and I hope you are), machine serial number details
are presumably available in dumps, traces, logs, etc. -- in the problem
determination data your customers voluntarily, knowingly send you to help
you support them. So there are occasions when you'll have visibility on such
"missing" machines.

Second, IF you absolutely must have software product keys, then customers
ought to be able to add machine serial numbers (where the product *might*
run) to their product, up front, and in perpetuity. For example, you license
the product on primary machine serial number 12345 and also allow the
customer to add serial number 67890 to the key, on day one, for their DR
machine. Whenever they get a new or replacement machine (if they do), they
can change either or both serial numbers. Loop, repeat. And you must receive
SCRT reports for the primary machine, by contract agreement. Can you handle
that sort of arrangement commercially? Of course you can.
Meanwhile, customers don't have anything to do when they need to recover
their operations on their DR machine. They already have the key, and they've
already run a DR rehearsal (hopefully).

Yet another way to handle keys (IF you must, and I don't recommend them) is
a "break glass in an emergency" way. You put the "emergency" key(s) on a
couple secured, cloud-hosted sites (say, at IBM and Google). If the customer
grabs the key, you receive a message or notice from the cloud
provider(s) that somebody grabbed the key. And that key is only to lift
already less onerous restrictions, such as exceeding a 90 day DR machine
run.

If you're going to have keys (please don't), you really need to think
through how customers must run their mission-critical operations. And you
need to plant your feet firmly in their shoes, first, and understand what
YOU would want if it were your business. And you wouldn't want what some
vendors (a minority) currently do.

>- This customer has been running a "30-day" trial of our product for 
>nine months now. How do we get them to move "finalizing a license" to 
>the top
of
>their task list rather than letting it languish under "we have not had
time
>to do that yet"?

There are a couple possible answers to this:

1. Slightly function limit the trial version in a "sensible," reasonable way
-- and, better yet, make the trial a free, open download for everyone, so
that you get more potential sales. (Maybe with a registration page to
collect customer details up front, but with as few barriers as possible.
Make it easier to trial the product, and you sell more.) For example, if
you're a vendor of printing software, "watermark" every 5th printout in the
trial version. The form of "watermarking" will be product specific and
situational, but pick something reasonable in the circumstances. When your
customer pays for a license and signs their agreement (including SCRT terms
and conditions), send them the non-watermarked code. (Which by then might be
a point release or two higher anyway.)

Give me an idea of what your product does, and I can probably think of a
"reasonable" trial version limitation, or couple limitations, that still
gives prospective customers a reasonable, legitimate opportunity to evaluate
your product but that doesn't convey enduring production suitability.

2. Send them a bill per the terms and conditions of your trial agreement
with the customer. If the customer refuses to pay the bill, forward it to
collections -- outsourced, on contingency, if/as you prefer.

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