Pricing for older versions

I always wondered what software companies do with older versions of their
products. For example, Microsoft do not sell Windows 3.11 anymore, but
someone might still want to have it. And to have it legally. He cannot just
copy it from the friend, because it is piracy, and he cannot buy it from
Microsoft. What would he do, if he does not need XP or Win2K or even Win95?

Some companies, like Borland, give away some stuff for free, like BCC 3.0
with no obligations whatsoever. But it is still not sufficient, why would
not they give away the whole BCW 3.1 or Delphi 1? They do not suppose to get
any revenue from selling these products anyway, why just not give them away
or sell very cheaply, like they sell old games?

The same goes with IDEA. What do you guys think about selling 2.5 very cheap
or even giving it away for free? Or about discounting 3.0 after 4.0 will be
rolled out? Of course there is a threat that someone might be just happy
with the cheap old version and will not buy new and expensive one. But he
would not buy it anyway, because it is so expencive! And maybe later he or
she would upgrade to the newer version, and it will be easier, because he
would not need to shell out big bucks right away, but will do it gradually.
Also, he might earn some money for the new and fancy version doing some
payable development using the old and cheap one ;)

Another problem is support, but the old stuff has to be pretty stable one
with enough docs and howtos. And if it were so buggy that the newer version
was really needed, then it would be just a shame to charge for an old one.

Consider this. Right now 3.0 goes for $500. There are a lot of folks who
cannot afford or just do not feel like paying half a grand for the software.
But if they are happy with older version, they could have 2.5 for, say, a
100. Or even for free. Then, getting into it and earning some good cash
doing development, they would upgrade to 3.0 using some relaxed upgrade
plan, like for another 100. Thus, they would get 3.0 for 200. There may be a
condition, that "relaxed upgrade" cannot be made in less than 6 months or a
year after purchasing "cheap and old version". Thus those who need modern
tools will not have a craving to buy old and then immediately upgrade
cheaply.

Anyway, I think there could be a lot of choices selling old software and
upgrading to newer stuff without hurting major income cow: the last and the
best stuff.

Huh?


6 comments

Michael,

While this might be fine for bigger companies, my main concern with the
approach of giving old software for free or even minimal fee, is that
someone who might not be able to afford the latest and greatest might
buy IDEA 2.5, and consider it as good as IDEA can do, and form an
opinion on that product. Knowing how much more advanced IDEA is from
2.5 to 4.0, if I were with the company I sure wouldn't want them using
it, nor do I want to support it, nor do I want anyone getting the idea
that this is what I think represents my company's product.

So there are 2 sides to this.

R

Michael Jouravlev wrote:

I always wondered what software companies do with older versions of their
products. For example, Microsoft do not sell Windows 3.11 anymore, but
someone might still want to have it. And to have it legally. He cannot just
copy it from the friend, because it is piracy, and he cannot buy it from
Microsoft. What would he do, if he does not need XP or Win2K or even Win95?

Some companies, like Borland, give away some stuff for free, like BCC 3.0
with no obligations whatsoever. But it is still not sufficient, why would
not they give away the whole BCW 3.1 or Delphi 1? They do not suppose to get
any revenue from selling these products anyway, why just not give them away
or sell very cheaply, like they sell old games?

The same goes with IDEA. What do you guys think about selling 2.5 very cheap
or even giving it away for free? Or about discounting 3.0 after 4.0 will be
rolled out? Of course there is a threat that someone might be just happy
with the cheap old version and will not buy new and expensive one. But he
would not buy it anyway, because it is so expencive! And maybe later he or
she would upgrade to the newer version, and it will be easier, because he
would not need to shell out big bucks right away, but will do it gradually.
Also, he might earn some money for the new and fancy version doing some
payable development using the old and cheap one ;)

Another problem is support, but the old stuff has to be pretty stable one
with enough docs and howtos. And if it were so buggy that the newer version
was really needed, then it would be just a shame to charge for an old one.

Consider this. Right now 3.0 goes for $500. There are a lot of folks who
cannot afford or just do not feel like paying half a grand for the software.
But if they are happy with older version, they could have 2.5 for, say, a
100. Or even for free. Then, getting into it and earning some good cash
doing development, they would upgrade to 3.0 using some relaxed upgrade
plan, like for another 100. Thus, they would get 3.0 for 200. There may be a
condition, that "relaxed upgrade" cannot be made in less than 6 months or a
year after purchasing "cheap and old version". Thus those who need modern
tools will not have a craving to buy old and then immediately upgrade
cheaply.

Anyway, I think there could be a lot of choices selling old software and
upgrading to newer stuff without hurting major income cow: the last and the
best stuff.

Huh?


0

Hmm... Never saw that coming. Anyway, I do not think that WinXP is better
than Win2K or Win95 is better than Win 3.11 (we all know, that 3.11 is more
32-bit than 95). Anyway, everybody knows what Windows is and how far it can
go. The same with IDEA: anyone can download a trial copy and use it for how
long? a forthnight? So people would know what they possibly can get and they
will have an option to decide either they need it or not. For example, I am
perfectly satisfied with 3.0 and I do not do Swing programming, so I do not
need 4.0 But if I did not have 3.0, I would be forced to buy 4.0 just
because 3.0 is not supported yet. Why should I buy a newer IDE, if it works
slower, takes more disk space and does not affect my productivity much?

Anyway, I am not in the marketing, so I cannot predict all the consequences
of this step if it were taken. Still, one can buy, say, Monkey Island 1 and
play it and have fun and not presume that this is the best LucasArts can do.
Actually, I like Monkey Island 1 and 2 better than 3 and much better than 4.
Same with OS and IDE, I still keep mine Delphi 1.02...

About support. Of course, it should be very limited if any. After all, this
is a free cake.

Michael.

"Robert S. Sfeir" <no_mail@jetbrains.com> wrote in message
news:bn4fmb$j6v$1@is.intellij.net...

Michael,

>

While this might be fine for bigger companies, my main concern with the
approach of giving old software for free or even minimal fee, is that
someone who might not be able to afford the latest and greatest might
buy IDEA 2.5, and consider it as good as IDEA can do, and form an
opinion on that product. Knowing how much more advanced IDEA is from
2.5 to 4.0, if I were with the company I sure wouldn't want them using
it, nor do I want to support it, nor do I want anyone getting the idea
that this is what I think represents my company's product.

>

So there are 2 sides to this.

>

R

>

Michael Jouravlev wrote:

I always wondered what software companies do with older versions of

their

products. For example, Microsoft do not sell Windows 3.11 anymore, but
someone might still want to have it. And to have it legally. He cannot

just

copy it from the friend, because it is piracy, and he cannot buy it from
Microsoft. What would he do, if he does not need XP or Win2K or even

Win95?

>

Some companies, like Borland, give away some stuff for free, like BCC

3.0

with no obligations whatsoever. But it is still not sufficient, why

would

not they give away the whole BCW 3.1 or Delphi 1? They do not suppose to

get

any revenue from selling these products anyway, why just not give them

away

or sell very cheaply, like they sell old games?

>

The same goes with IDEA. What do you guys think about selling 2.5 very

cheap

or even giving it away for free? Or about discounting 3.0 after 4.0 will

be

rolled out? Of course there is a threat that someone might be just happy
with the cheap old version and will not buy new and expensive one. But

he

would not buy it anyway, because it is so expencive! And maybe later he

or

she would upgrade to the newer version, and it will be easier, because

he

would not need to shell out big bucks right away, but will do it

gradually.

Also, he might earn some money for the new and fancy version doing some
payable development using the old and cheap one ;)

>

Another problem is support, but the old stuff has to be pretty stable

one

with enough docs and howtos. And if it were so buggy that the newer

version

was really needed, then it would be just a shame to charge for an old

one.

>

Consider this. Right now 3.0 goes for $500. There are a lot of folks who
cannot afford or just do not feel like paying half a grand for the

software.

But if they are happy with older version, they could have 2.5 for, say,

a

100. Or even for free. Then, getting into it and earning some good cash
doing development, they would upgrade to 3.0 using some relaxed upgrade
plan, like for another 100. Thus, they would get 3.0 for 200. There may

be a

condition, that "relaxed upgrade" cannot be made in less than 6 months

or a

year after purchasing "cheap and old version". Thus those who need

modern

tools will not have a craving to buy old and then immediately upgrade
cheaply.

>

Anyway, I think there could be a lot of choices selling old software and
upgrading to newer stuff without hurting major income cow: the last and

the

best stuff.

>

Huh?

>
>

>


0

May be several flavors like JBuilder? Although personally I think that
IntelliJ price is such that it doesn't need a simplified edition (may be
only a student/teacher edition).

Amnon

"Michael Jouravlev" <mikus@mail.ru> wrote in message
news:bn4ls2$cb6$1@is.intellij.net...

Hmm... Never saw that coming. Anyway, I do not think that WinXP is better
than Win2K or Win95 is better than Win 3.11 (we all know, that 3.11 is

more

32-bit than 95). Anyway, everybody knows what Windows is and how far it

can

go. The same with IDEA: anyone can download a trial copy and use it for

how

long? a forthnight? So people would know what they possibly can get and

they

will have an option to decide either they need it or not. For example, I

am

perfectly satisfied with 3.0 and I do not do Swing programming, so I do

not

need 4.0 But if I did not have 3.0, I would be forced to buy 4.0 just
because 3.0 is not supported yet. Why should I buy a newer IDE, if it

works

slower, takes more disk space and does not affect my productivity much?

>

Anyway, I am not in the marketing, so I cannot predict all the

consequences

of this step if it were taken. Still, one can buy, say, Monkey Island 1

and

play it and have fun and not presume that this is the best LucasArts can

do.

Actually, I like Monkey Island 1 and 2 better than 3 and much better than

4.

Same with OS and IDE, I still keep mine Delphi 1.02...

>

About support. Of course, it should be very limited if any. After all,

this

is a free cake.

>

Michael.

>

"Robert S. Sfeir" <no_mail@jetbrains.com> wrote in message
news:bn4fmb$j6v$1@is.intellij.net...

Michael,

>

While this might be fine for bigger companies, my main concern with the
approach of giving old software for free or even minimal fee, is that
someone who might not be able to afford the latest and greatest might
buy IDEA 2.5, and consider it as good as IDEA can do, and form an
opinion on that product. Knowing how much more advanced IDEA is from
2.5 to 4.0, if I were with the company I sure wouldn't want them using
it, nor do I want to support it, nor do I want anyone getting the idea
that this is what I think represents my company's product.

>

So there are 2 sides to this.

>

R

>

Michael Jouravlev wrote:

I always wondered what software companies do with older versions of

their

products. For example, Microsoft do not sell Windows 3.11 anymore, but
someone might still want to have it. And to have it legally. He cannot

just

copy it from the friend, because it is piracy, and he cannot buy it

from

Microsoft. What would he do, if he does not need XP or Win2K or even

Win95?

>

Some companies, like Borland, give away some stuff for free, like BCC

3.0

with no obligations whatsoever. But it is still not sufficient, why

would

not they give away the whole BCW 3.1 or Delphi 1? They do not suppose

to

get

any revenue from selling these products anyway, why just not give them

away

or sell very cheaply, like they sell old games?

>

The same goes with IDEA. What do you guys think about selling 2.5 very

cheap

or even giving it away for free? Or about discounting 3.0 after 4.0

will

be

rolled out? Of course there is a threat that someone might be just

happy

with the cheap old version and will not buy new and expensive one. But

he

would not buy it anyway, because it is so expencive! And maybe later

he

or

she would upgrade to the newer version, and it will be easier, because

he

would not need to shell out big bucks right away, but will do it

gradually.

Also, he might earn some money for the new and fancy version doing

some

payable development using the old and cheap one ;)

>

Another problem is support, but the old stuff has to be pretty stable

one

with enough docs and howtos. And if it were so buggy that the newer

version

was really needed, then it would be just a shame to charge for an old

one.

>

Consider this. Right now 3.0 goes for $500. There are a lot of folks

who

cannot afford or just do not feel like paying half a grand for the

software.

But if they are happy with older version, they could have 2.5 for,

say,

a

100. Or even for free. Then, getting into it and earning some good

cash

doing development, they would upgrade to 3.0 using some relaxed

upgrade

plan, like for another 100. Thus, they would get 3.0 for 200. There

may

be a

condition, that "relaxed upgrade" cannot be made in less than 6 months

or a

year after purchasing "cheap and old version". Thus those who need

modern

tools will not have a craving to buy old and then immediately upgrade
cheaply.

>

Anyway, I think there could be a lot of choices selling old software

and

upgrading to newer stuff without hurting major income cow: the last

and

the

best stuff.

>

Huh?

>
>

>

>
>


0

they kind of toyede with the idea of a personal edition. not sure if that will come back or be just a promotional sometimes type thing

0

"Amnon I. Govrin" <agovrin@freshwater.com> wrote in message
news:bn73t0$6ls$1@is.intellij.net...

May be several flavors like JBuilder? Although personally I think that
IntelliJ price is such that it doesn't need a simplified edition (may be
only a student/teacher edition).

>

Amnon


I was not talking about simplified edition (though it is another but
orthogonal solution), I was talking about older versions, which are not
supposed to be profitable anyway, because there is a new latest and greatest
version which everyone is for. So old versions are just abandoned. But why
should they be? If someone is perfectly OK with an old one and will never
buy a new anyway? I can buy old games very cheap, because their authors
already received all the possible revenue when they just released a game and
all these gamers were buying it for, say, $30. After a year or two it is
discounted to $10 or even $5, and they still can make some money on it. Ok,
dev tools are not games and can be used for much longer time, and developers
are not that crazy as gamers ;), but still...

With at least three versions of a product the possible pricing lifecycle can
be as follows:
- highest price on the latest version
- previous version is discounted after new version is released. "Relaxed
upgrade" to the latest version is possible only after 6 months or a year.
Or, for immediate upgrade, the whole amount for the new version should be
paid in total.
- even older versions can be given away for free or for really little money,
and without any support whatsoever.

With one year release cycle this might make sense. But again, I am not a
marketing or finance guy.

Michael J.

P.S. No matter will JetBrains use this approach or not, I should patent
"relaxed upgrade" term, I think ;)


0

I was wondering that as well. The upgrade to 4.0 looks
to be $250, which is $50 more than the personal license
was. So, if you got the personal license, at least your
upgrade cost is similar.

0

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