ROI (was PowerHouse.Net)

[John Pearce]

At 10:02 AM 6/7/2002 -0500, "Edis, Bob" <BEdis@usbnc.org> wrote:
>Costs are an arbitrary and confusing issue.  I don't believe you can
>accuse/blame any of Cognos' sales of ADT products on cost alone.

Blue,

My employer bought a HP 3000 Series 58 and PowerHouse in 1986.  In 1990/91, 
the Series 58 was replaced with a 3000 Series 937.  Cognos gave us a 
trade-in value for PH on the Series 58 against the cost for the 937.  When 
we bought a 3000 N-class last August, there was no trade-in value for the 
937 software.  The only option was to buy the product again.

IMO this was taking advantage of the installed customer.  I've never heard 
any good explanation for the pricing.  Did Cognos have to do a re-write to 
implement PH on the A/N-Class and needed the money to cover the development 
cost?  I don't think so.  Because of their "buy it again" position, we 
dropped the PH Architect product.

Also, just in case you're wondering, this isn't a "sour grapes" 
situation.  We needed the boost in processing power over the 937 so we 
would have bought hardware anyway.  Had we known in August, 2001 that the 
November announcement was coming, we would probably have bought a used 9x9 
box rather than the N-Class box.

John
------------------------------------------------------------------
John Pearce  <jpearce@rmi.net>	| Bethesda Management Company
Speaking for only myself		| Colorado Springs, CO  USA