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Technology Stocks : Firstwave Technologies, Inc. (FSTW)

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To: choban who wrote (135)12/8/1997 10:15:00 PM
From: Roger A. Babb  Read Replies (2) of 1205
 
Choban, thanks for the good Navy example. Many years ago I changed the way we pay our company truck drivers from an hourly rate to a per mile rate plus stop-off credit. My cost per driver went up a bunch, but so did my productivity and revenue. The drivers make more money and so does the company.

I think the same will be true for a server activity charge as compared to a per seat charge. I expect that as a customer I will end up paying more under the activity charge, but I am paying only for productive use and thus am happy. I don't like to pay for unproductive truck seats or software seats...........

If the seats have a high fixed cost, I will buy few and distribute them carefully. If the seats are free, I will distribute them far & wide and then be happy when I get a lot of activity to pay for. A better business model.
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