it has been a busy couple of weeks trying to create an understanding for my customers about pricing and cost of adopting application and software. with no regard to the technology itself, the sole purpose of IT when it was created was to ease the operational life of the human being around. with the increasing adoption of technologies, a new era has come, it became about automation for the IT administrators themselves to decrease the operation cost.
having that in mind, the question that should be asked by the customers when adopting a technology in their organizations is how much am i going to save if i adopt the technology and its features, not how much do i have to pay to have it?
This is been the only approach all around in the software industry, from different kind of softwares like databases, Content management, virtualization … etc
when customers start to explore and want to adopt a technology, the price model customers should think about is how much this technology will save them weather it was money, operation, time, efficiency … etc.
when the customer realize this approach and start looking at the software industry, they will find themselves in a position where they adopt the best products, a reliable technology and something that really works the way it was advertised to be working.
What’s that got to do with Virtualization?
when you look at the virtualization technology vendors, you will find some of them talking about the cost of adopting the technology not the cost minimized due to the adoption of the technology itself. this starts to create a confusion for the customers in the market and all of sudden they find themselves stuck with a technology that doesn’t save cost. instead, less cost saving or may be add an overhead cost, or save no cost at all.
the conclusion here is that, when it comes to how customers should think when adopting the virtualization technology then it is all about “how much it will cost the customer per application” scale rather than virtualization software licenses cost. this cost per application scale will include but not limited to.
1- Hardware cost.
2- Software cost.
3- Power & Cooling cost.
4- datacenter space cost.
4- Operational Costs and the level of tasks automation.
5- Down time cost.
6- Management overhead cost.
7- the list still goes on.
and as i said before, this is how people are thinking when adopting any technology not just virtualization.
in summary, it is all about how much, but not how much i have to pay. rather, how much am i going to get.
Hope this has created a new understanding for the customers that are having this confusion and looking forward to your comments.