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To: mtnlady who wrote (33875)10/27/2000 1:28:42 AM
From: kumar  Read Replies (1) | Respond to of 54805
 
The subtle differences between your last post and my previous post come down to 1 thing :
WHO is the PRIME CONTRACTOR for the deal (what I call 'the solution') ?

payment (and penalty) terms differ on that basis.

cheers, kumar



To: mtnlady who wrote (33875)10/27/2000 9:47:53 AM
From: DownSouth  Read Replies (1) | Respond to of 54805
 
with software we are normally paid more 'up front'. I.E. we are paid for the software application in stages but those stages are 1) when contract is signed 2) when product is shipped and then 3) when product is installed. So in essense 2/3 of our payments are not tied to the implementation. It sounds like the telco business model is different.

I'll bet you often do not get paid up front or shipping when you make major sales to strategically important customers of software that is not proven to that customer in mission critical environments installed by your engineers.