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How Should I Price a Python Module License for Major Banks?

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Re: How Should I Price a Python Module License for Major Banks?

#11
Probably the real cost is in providing adequate ongoing support, and possibly insurances, and I suspect the banks know this and might baulk at too low a figure.

They don't want to be left holding the bag.

So I would have thought a risk based approach to the situation would be in order, especially given the nature of the situation.

What will it cost to get external validation services performed to check the code?

What could it cost if you had to pay consultants to do what would be needed if there was an error or a breach associated with the module, in terms of analysis and rectification?

What will it cost to have people available who are familiar with the code to make any changes that might be requested?

What will it cost to develop the code further and stay in front of competitors or attackers?

What will insurances cost, given the possible losses and probability a loss could occur?

Will you be limited to exclusivity? e.g. not sell to other banks who might be competitors.

Given the above, will you need to have dedicated premises and infrastructure?

So what, 5-8 people at reasonable wages for skills and experience, plus insurance, premises, infrastructure and other factors, like keeping people interested to stay working for you in a maybe boring job? Plus actually make some profit and stash some cash for a rainy day or another development opportunity to pursue.

Starts to sound like 1-3 mill a year all up is needed to run it as a going concern, if you are going to do it properly and depending where you are based. Maybe more if insurances are expensive.

Otherwise, are you sure you can't sell them the IP and walk away?

Re: How Should I Price a Python Module License for Major Banks?

#13
post #9

Earlier quoted context omitted.

Also, what is the financial risk the software is reducing or eliminating? If it massively reduces risk, it could adjust the price higher. These banks wouldn't bat an eye at $100k/yr if it has the chance to reduce a million screw-up byba sufficient amount.

How many people at a bank can approve a $100k purchase order vs. a $1,000 purchase order?

They're talking about an app team. The manager can likely approve 100k

Re: How Should I Price a Python Module License for Major Banks?

#14
Do you charge for the web app version? I'd expect the module version to be somewhat close to that?

Also make sure to expect a lot of pain working with IT at the banks. I worked with some people at US Bank and their restrictions were absolutely draconian.

For example, I had to make a vanilla version of the python tool I was working on for them because they had to review every one of my dependencies! I also couldn't send any kind of zip file to them so I ended up making a plain text encoding/decoding scheme so I could attach code distributions to emails.

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