Switching Costs in Software Development
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Switching Costs in Software Development
1–10 of 45 posts
Re: Switching Costs in Software Development
#2I always wonder why people think the only 'fair' pricing is pricing based on costs. This is not how free markets work.
Re: Switching Costs in Software Development
#3I always wonder why people think the only 'fair' pricing is pricing based on costs. This is not how free markets work.
That's very very true. However, "fair pricing" is mentioned because companies tend to use the term in their marketing explanations for raising prices. In free markets, it is also the responsibility of consumers to understand not only the prices they pay today, but the prices they allow companies to set tomorrow.
Re: Switching Costs in Software Development
#4cough...EngineYard...cough.. cough...
Re: Switching Costs in Software Development
#5cough... EngineYard ...cough.. cough...
As an East-coaster, it's always a delight to hear about products "in the wild" where you've actually met people that worked on it!
Re: Switching Costs in Software Development
#6I always wonder why people think the only 'fair' pricing is pricing based on costs. This is not how free markets work.
You are right that pricing on costs is not how it should work. A better pricing would be based on the value created. In this case however the value created correlates to the man hours saved (vs. e.g. managing instances manually without the tool). And since manually managing a large instance is not more work than managing a smaller one, there is no additional value created, so the pricing logic is unreasonable.
Re: Switching Costs in Software Development
#7I always wonder why people think the only 'fair' pricing is pricing based on costs. This is not how free markets work.
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Re: Switching Costs in Software Development
#8Sounds like our experience when Tutum, now "Docker Cloud" decided to go out of beta with a pricing model that punished users with many containers, and little data/usage. Like startups..
We jumped to Rancher.
Re: Switching Costs in Software Development
#9I wish more web services provided opensource versions (Service-as-a-Software). Large orgs would still pay for service contracts even if they self host, and just having the option makes everyone more likely to invest on top of your service.
Re: Switching Costs in Software Development
#10I wonder if and how you plan this economically, like adding a future cost for each hour of work sunk into the platform. Where you eventually reach a margin where it's no longer economical to sunk more hours into the irreplaceable.