License Cost Rant

We receive a baffling question on a daily basis and this morning I do rather feel like sharing it with you 😉

But first, see if you follow my logic here…

When you go out and buy a new car, have you ever explained to the dealer that you will not be using the center seatbelt in the rear row and therefore they should consider re-calculating the cost of the vehicle?

Have you ever explained to Microsoft that your company will never use the “Agency FB” font and asked “so NOW how much is MS Office”?

Right, of course not, it would defy logic to the point of absurdity.

Almost every day we get a question along those same lines.

Why is that?

I have to assume that somewhere along the way a discount has been given by some non-contributing zero sales guy under the pretense of “well, since you will only be using 95% of the functionality, I will only charge you 95%” – (undoubtedly to get the sale). While this maneuver effectively makes the sales guy appear to be a truly caring and thoughtful individual, I believe it somehow forever warped the buyer’s sense of logic.

Let’s for a moment entertain that bazaar universe where the car dealer WOULD in fact discount the cost of the vehicle because you do not intent on using the center seatbelt in the rear row. What happens the first time you actually do need it?

Do software manufactures break out discounts based on the honor system? In case you are wondering, the answer is no, no they do not. With the exception of charity discounts, discounts are largely used to offset the ability to communicate value.

So the next time you get a sweet discount based purely on not utilizing the product to its fullest potential – you should undoubtedly take the discount with a smile, but understand what the discount was really about and don’t let it warp you head 😉


About Sean Bordner

CEO, Solution Architect, Co-Author of SharePoint for Nonprofits, Contributing Author MCT, MCTS, MCSD, MCP, MCAD
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