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2/26/2018 | 12:52:42 PM
Re: Pricing clarity
Seeing how it's "almost like buying a gift card," it reminded me that merchants make a nice profit from using the float on those cards, receiving the money often a long time before the card is used, while expecting that a great number of the cards don't get used at all. I wonder if that might be a part of the profit plan at SAP for the newly offered cloud plans.
2/26/2018 | 12:40:49 PM
Re: Pricing clarity
@Maryam Yes, I think it will take some people some time to wrap their head around this new paradigm. But if you think about the flexible options currently in use for busiensses -- including renting temporary offices rather than committing to spaces long term - - it is a sign of the times.
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2/26/2018 | 11:52:45 AM
Pricing clarity
Its a very interesting strategy for businesses but it most likely makes profit margins very different. For many companies, the product bundle is a specific methodolgy to achieve certain margins on products especially those becoming commoditized, it makes price comparision less black and white.This model seems to lay bear all that is involved in pricing and usage. I am interested to see if it will fuel price battles when the business consumer is armed with their usage data and cost profile.
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