Re: Question About SA
- From: Steve Tyrakowski <steve@xxxxxxxxxxxxxxxxxx>
- Date: Thu, 22 Feb 2007 11:15:21 -0600
In article <xn0f2qgyb62bgu001@xxxxxxxxxxxxxxxxxxxxxx>, John E. Wilfong wrote:
Purchase D2007 for Win32. Purchase automatically includes 12 months
updates. Essentially you are purchasing a subscription whether you want to
or not with the initial purchase.
I think that is a good idea, and the 12 months shouldn't necessarily be cast
in stone. Even if it was only 6 months, you would have 6 months to decide if
you should renew for another 12 months, and that would give you a little
break not requiring as big an upfront hit to get onto SA.
A new license purchase could have a longer intial subscription than someone
who purchased as an upgrade at a lower price.
If you think about this approach, it is very similar to the offers made just
prior to new releases where buying now qualifies for the new version free
when released.
Of course, for CodeGear, the issue will be the timing of revenue recognition.
A new license or upgrade gets recognized immediately, while SA must be
recognized over the life of the subscription term. Switching over to this
model will probably hurt earnings for 2 or 3 quarters until the number of
inforce subscriptions builds up.
Steve Tyrakowski
.
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