I think you are very perceptive, ah. Network server software is not very price
sensitive. The cost for a corporation to set up a large network is huge,
particulary in terms of salaries. Any financial analysis of total costs
would find the one time purchase price of about $100 for a workstation/network
license almost non-relevant, verses the $5000 per year or so that it costs to
support that workstation. So there's lots of room for MSFT to raise prices.
However, they have just about given NT away for a long time to build market share.
(I said it wasn't price sensitive, but folks will try something for free to see
if they like it. After they do like it, and get committed, you own them.)
Well, the wordprocessing market is a lot different, in terms that it is more of
a consumer market. GM doesn't care what the cost is, but Maryanne's home
typing service does. When you have a product that's as good, or better, and
it costs half as much, the consuming public will catch on. It happened with
Japanese automobiles in the 70's, and I don't see why it won't happen with word
processors in the 90's (except of course, if MSFT buys everyone out, which could
happen).
Anyway, the idea of MSFT raising prices when they are awash in cash, does
seem odd. They can increase revenues, but they will give up some new market
share. Let's see if the next shoe drops and they lower the price of MS Office.
very interesting.
irv |
