Headsup: Gridlocked Customers Share Blame - InformationWeek

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Headsup: Gridlocked Customers Share Blame

Customers who complain about unfair pricing for grid computing may have themselves to blame.

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Customers who complain about unfair pricing for grid computing may have themselves to blame. Many vendors haven't bothered to update their pricing models for grid computing — the technology that lets computers share resources adaptively — because customers haven't demanded it, according to a report from The 451 Group.

Why not? People are more comfortable with predictable software costs even if the alternative — unpredictable, use-based costs — might be lower. Also, some users are possessive of their hardware-based software licenses.

Hardware-based pricing (cost per CPU) is common, but it's the least fair way to price software on a grid. Occasionally customers with enough clout negotiate alternative pricing, but most either give up on grid or pay a premium.

So how will customers realize the full potential cost savings of grid computing? No doubt it will start with demands for fair pricing from their software vendors. Something to keep in mind next time you're negotiating — or renegotiating — a contract.

Jeanette Burriesci

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