> The Linux pricing issue works both ways, though. A recent post said that > there were about 700 Linux/390 installations world-wide (300 production and > 400 in test). If SuSE sells one copy at $100 to each installation, that's > only $70,000 to cover research, creation of the kernel, packaging of all the > program products that go with it, testing and quality assurance to make sure > it all works together, development of YAST and other products, packaging on > CD, manuals, crating, storage and shipping.
The bundle is priced per engine - 700 installations probably use around 750 engines - that's over 8 million dollars. More significantly to me (with my analyst hat on) it suggests that SuSE is behind the curve converting these trial installations into production ones. The timing of this move for SuSE could not possibly be worse. 2001 saw the first full year of IBM mainframe hardware growth since 1989 - mainframe-oriented user groups are starting to meet again - the IBM-MAIN mailing list sees A LOT more posts per day than it did a year ago. I see definite and positive signs of firmness in the mainframe market. Trial and evaluation costs have to be of the same order as a PC. This is not the time to put up any barriers to your product. $11,000 is, for large companies, peanuts - but it can take MONTHS to get it through even if you can make the business case. The path of least resistance is now to go to another distribution. Dumb move on SuSE's part, but it's their business (just as Jim Lennane's was his) and they take their chance in the market. -- Phil Payne The Devil's IT Dictionary - last updated 2002/01/20: http://www.isham-research.com/dd.html UK +44 7785 302803 Germany +49 173 6242039
