[discussion] Schema of Valentina server licensing

[Ruslan Zasukhin]

on 6/20/03 1:23, Charles Yeomans at yeomans at desuetude.com wrote:

>> No question to you Charles.
>> Assume you have sale 10,000 copies of your application with
>> 5connection.
>> Assume you have sale it at price $50-$500.
>> So you get $500,000 - $5,000,000
>> 
>> 
>> Now let 5,000 your customers want to have 15 connections.
>> So you need sale them 5,000 * (15 - 5) = 50,000 connections.
>> Such bulk you can buy from us for $1 per connection.
>> 
>> 
>> So you need pay us $50,000, and you now can resale this connections at
>> price
>> that is acceptable on market. This is  $1-$70.
>> Therefore you can get $50,000 - $3,500,000.
>> 
>> Question is, is OUR price: $50,000 sounds reasonable
>> comparing to Developer's profit ?
> 
> Perhaps you mean "potential" profit; the developer must buy those
> 50,000 connections now and attempt to resell them later.

Look, as I have told, at first Developer sale 10,000 copies of app with 5
connection server. Developer pay ZERO to us, but make $500,000 - $5,000,000

Charles, does developer now have ability pay $50,000 ?
As far as we see YES.

As you can see bulk payment for connection give you only 1-10% of Developer
profit. Correct?

Next, of course only very big companies will be able buy so many connections
at bulk. In fact we going to start from packet of 10 connection for small
developers. 

So if count total profit of Developer
   ($500,000..$5,000,000) + ($50,000..$3,500,000) = ($550,000..$8,500,000)

And $50,000 payment to Paradigma give: from 9% to 0.5% of total sales.

Again, this is example for big company which have big sales.


>> ----
>> Just the last 2 weeks we have hot discussion with Keith.
>> Keith point that for developer tools price in tens of thousands of $
>> is not
>> acceptable. Keith point us as example codeBase.
>> 
>> In answer we point all other DBs such mySQL, OpenBase, ... Which all
>> have
>> prices several times higher for embedded solutions.
>> 
>> Keith say, Valentina is not the same to mySQL or openBase.
>> I am not agree. MySQL by big letters on their site say:
>>             "We offer embedded license"
>> 
>> So why Valentina is worse of mySQL???  :-)
>> 
> 
> Well, I'm beginning to wonder about order of magnitude here.  If you
> want to sell a VServer plugin for, say $999, that's one thing.  If you
> want to sell it for $9999, then I'm pretty sure I won't be buying it.

No Charles,

Price will not be $9999.  :-)

As Lynn, have point you need just purchase membership of Valentina developer
network, say at $600. For this price you will get a lots of goods from us
(about $1200 in fact).

Let's all.

You can start develop your application and sale it.

You need understand just one thing. Of course you will not sale 10,000
copies of your app in one day. Correct?

This will take on year, may be 5 years. Correct?

IF for your customers will be enough 5 connection server, then Charles, you
DO NOT need pay us anything more. May be you will sale thousands of copies
of your app, make millions of bucks and still pay us ZERO.

ONLY and ONLY your customer need more connections you will need buy some
amount from us and resale it to your customer. And note, you can do this
with significant profit!

Lynn, I have just understand, that we have like 2 different products:
    server itself
    connections to server.

Charles, you can consider each sold connection as a seat for your customer.
Correct? Totte and other developers who are used to Server market, point
that organizations can easy pay YOU $20-$70 per seat.

So Charles, after this explanation,
you still think something is wrong?

Again:

1) embedded server itself will not costs $9999.
    in fact 5 connection server is FREE !!!
    you can write even shareware utility for $20, sale million of copies
    of this utility, make $20M of profit and pay us zero.
    Or you can sale 100 copies of it, make $2000 and be happy.
    At last of end this is shareware.

2) only additional connections require additional payments.
    but we consider Developers as MAIN partner of us.
    So we provide huge discounts to you to allow you make huge profit
    on this kind if sales also.
    some profit share we want also.

3) payments for connections can be distributed in the time significantly.
    but the more bulk of connections you buy, the more discount you get.

What you think ?

-- 
Best regards,
Ruslan Zasukhin      [ I feel the need...the need for speed ]
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e-mail: ruslan at paradigmasoft.com
web: http://www.paradigmasoft.com

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