French CaldwellWhile other industries have hats in hand to Washington, the engine of American and global economic growth, the IT industry, or at least the software part, is in a unique position to bail out itself. A characteristic of the industry is that its value is almost completely determined by intangibles. In a time of high growth, that enables huge margins for software, and in a downturn, it should mean a lot of price flexibility.
The problem is that for most enterprise software, the published price is not the real price, and no one, even we analysts, can be sure what the real price is.
So how about some transparency in pricing? Sure, that’s easy for an analyst to say, right — but putting customers under non-disclosure agreements for pricing makes it harder for potential buyers to develop comparisons — it slows down the market. Pricing transparency will give the IT industry its own stimulus package! Come on — you can do it! Red tag, no hassle pricing for enterprise software.
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