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To: Bill Jackson who wrote (16989)2/3/1998 12:21:00 PM
From: K. M. Strickler  Read Replies (1) | Respond to of 24154
 
On the license, I (MSFT) would want to know what the embedded base was so I could staff some percentage of 'help' phones. I would use the license $ to fund that support, at least to pay for building and phones, and maybe some staffing. I might still have to charge something on a per call basis. I'm sure that if the license was only $1, nobody would complain, so we really are worried about the possible overall cost! Let say that the cost is $100 per terminal! Now that is a 'bit high' and that would cause one to 'swallow hard' followed by a 'shortness of breath'! (Is this a one time fee, or annually renewable?) At any rate, the computer probably cost $2500 with another $2500 worth of 'licensed' software on it! The employee looking at the screen is probably at least $25,000 annually (renewable) including overhead Health Ins., L&I, Workers compensation, and that 7.65% employers part of taxes. The annual cost of the $100 license is about .00004% of the annual cost! True, just looking at the amount, it looks like a 'rip', but does it guarentee continued development?

As for the cost to the company, the employee has to generate revenue for the company, either 'directly' or 'indirectly' which more than covers the companys costs. If not, the company will eventually work itself into bankruptcy.

Thoughts?

Ken