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developerWorks  >  Lotus  >  Forums & community  >  Notes/Domino 6 and 7 Forum

Notes/Domino 6 and 7 Forum

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More info on new pricing model
Arthur Fontaine 2.Oct.02 10:39 AM a Web browser
General 6.0 All Platforms


The primary theme of the price change is that Lotus simplified the purchase and licensing options for Domino messaging and applications.

* Adopted the industry standard model of per-CPU pricing for the servers, but left all client pricing unchanged
* Added a new purchase model (Utility Server) that lets customers buy applications without CAL requirements

Note that this is not a Notes/Domino 6 price change (although the new features and capabilities in 6 certainly increase the value of the product). There is no "version-specific" pricing for Notes and Domino; it all costs the same. In other words, Domino 6 and R5 are available now at existing pricing, both will adopt the new pricing in January. So it's important to note that announced prices don't take effect until January, and through year-end you can continue to buy product and maintenance using the existing prices and packaging.

The new model winnows four server offerings plus a "plug-in" license to just three server offerings:

EXISTING PRICING
----------------------------
Mail Server
$894* US, 1-4 CPUs
Mail/C&S ONLY
1 CAL per mailbox

Application Server
$2,308* US, 1-4 CPUs
Mail/C&S, Applications
1 CAL per mailbox or authenticated user

Enterprise Server
6,423* US, 5-8 CPUs
Mail/C&S,Applications
1 CAL per mailbox or authenticated user
Clustering

Advanced Enterprise Server
$25,713* US, 9+ CPUs
Mail/C&S, Applications
1 CAL per mailbox or authenticated user
Clustering

Extranet CAL
$5,353* US
Applications ONLY
No CAL requirement
Server software extra
Non-employees only

NEW PRICING
----------------------------
Messaging Server
$894* US per CPU
Mail/C&S ONLY
1 CAL per mailbox

Enterprise Server
2,308* US per CPU
Mail/C&S, Applications
1 CAL per mailbox or authenticated user
Clustering

Utility Server
$11,750* US per CPU
Applications ONLY
No CAL requrement
Clustering

*Includes license and 1 year support/maintenance, suggested volume price Passport Level A

Or, in short:
* Mail Server becomes Messaging Server
* Application, Enterprise, and Advanced Enterprise become just Enterprise Server
* The Extranet CAL goes away, but a new Utility Server provides similar functionality, more simply

The primary pricing difference is that, what now gets you up to four CPUs worth of Mail Server or Application Server now gets you one CPU worth of Messaging Server or Enterprise Server. At first blush the reaction may be, "Hey, I used to get 4 CPUs for that price -- you've just quadrupled the price!" And that's valid math for that line item, if you have a 4 CPU machine. However, this is one of those times where there's a "big picture" to consider:
* Our modeling shows that most customers would actually see a small increase -- single digits or low double digits by percentage -- because the server cost of a Domino implementation is a small piece of the total software cost
* For customers who are using R5 Enterprise and Advanced Enterprise Servers, the pricing change is typically much less because per-CPU pricing is implicit in the way those "step" pricing models are already built
* Clustering is now included in Enterprise Server; along with scalability improvements in Domino 6 (and the WebSphere entitlement), that translates to more "oomph" available per CPU
* The per-CPU pricing model is becoming the norm because it fairly charges for what is used, irrespective of hardware or platform

Furthermore, in scenarios where the move to per-CPU pricing does have a bigger impact, we've made sure that mitigating tactics are possible
* Customers can purchase through December at existing prices, with up to two years' maintenance
* Customers can optimize against the CPU metric -- in other words, an 8 CPU machine can be replaced with a 4 CPU machine with faster processors
* Unlike our primary competitor, Domino supports many high-scalability platforms that can optimize CPU usage

UTILITY SERVER
The new offering is Utility Server. Its theme is simplicity -- you just plug it in and use it, without worrying about who connects, or what software they use. Note that this is an incremental, alternative purchase mode to Enterprise Server, which uses the same CAL model we've always had. It's the same idea as when you order a phone line (here in Massachusetts anyway) and are offered a choice between metered service and unlimited service. Even if the calls in a typical month would add up to less, people overwhelmingly select the unlimited service because it's fixed price and basically requires no additional investment of time or attention. Utility Server is similar. The entry price is a little higher, but then you don't have to track or account for any users or usage.

Here are some of the advantages of the CAL-free Utility Server:
* You don't have to explain why an application server uses an e-mail pricing model (or how it doesn't impact e-mail)
* Since you're not buying e-mail, there's a cost advantage over Notes/iNotes for Collaboration applications (which grows with application user population)
* The universal client license makes it easier to explain the power of Notes-Web applications (which still nobody else can do)

So when you develop a solution based on Utility Server, you can focus exclusively on the business value. Our research (and your feedback) shows that most customers just want their application to solve a specific problem, and that's what you're good at. We're also aware that Domino can sometimes cause a bit of an "allergic reaction" in some accounts, whether it's due to MSFT/Exchange champions who fear Domino, or Web developers who think application infrastructures must be 100% Java and browser based, or even a business manager's 4.5 e-mail experience. Utility Server cuts off those conversations because it's not an e-mail server; it just solves problems opportunistically, without impacting every other piece of an IT environment.

This is just the same Domino code with a new purchase model. It is not suitable for all scenarios due to its higher entry point; equivalent CAL-based pricing could still be lower for some scenarios. But consider that the competition in this scenario isn't Exchange, it's Cold Fusion or php or, more likely, roll-your-own apps built in Windows/.net or J2EE. With a capped price for a Domino server, you should be able to do more than the competition at a lower price. So no, it may not be right for all customers, but it should hit the sweet spot for customers who want sophisticated applications at a reasonable cost.

I'll post the Utility Server FAQ in a response message here.

WEBSPHERE ENTITLEMENT
We have also announced a new WebSphere 5 entitlement with Domino Enterprise Server and Utility Servers ONLY. Since WAS 5 will not be available for a few months, we have provided an interim entitlement to WAS 4.

This is full WAS code, but with a set of license restrictions that are suitable for extending Domino applications with servlets, Java server pages (JSPs) and Web services. If you need WAS to do more -- such as connect to external data sources or run EJBs -- then this entitlement isn't going to help. However, we will offer an upgrade discount to retail versions of WAS 5 for those scenarios (or of course you could use another J2EE server).

Some typical uses would be:
* Increasing scalability by using JSPs for high-volume pages, such as index or home pages, while Domino stores and presents specific documents such as knowledge base entries or architectural drawings. JSPs also offer "pixel level" control in presenting the same content and objects, in ways that can be challenging to duplicate in native Domino forms and documents.
* Mixing servlets in with agents in Domino applications and workflows. The performance advantage for servlets over agents is that servlets are instantiated once and remain resident in memory. Agents retain advantages specific to the Domino object model, including more granular security, but intelligent use of servlets can extend a Domino application's functionality while improving its performance.
* Exposing Domino application functionality as Web services, which can be accessed remotely by other servers and applications. WebSphere can provide the Java and Web services engines that makes this possible.

The purpose of the WebSphere entitlement is to augment the toolkit you can apply to your applications. You do not have to use WebSphere (or any other system besides Domino), of course, but the ability to do so is designed to give you new options.

I'll post the WebSphere Entitlement FAQ in a response message here as well.

Hope that answers most of everyone's questions. Don't be shy about asking for more info if you need it!

/Art




Calling Ed Brill! Need a clear and ... (Andrew Price 30.Sep.02)
. . I'll check with the team (Ed Brill 30.Sep.02)
. . . . RE: I'll check with the team (Stan Rogers 30.Sep.02)
. . . . . . Yes, $11,750 per CPU for Utility Se... (Arthur Fontaine... 1.Oct.02)
. . . . . . . . RE: Yes, $11,750 per CPU for Utilit... (Stan Rogers 2.Oct.02)
. . . . . . . . . . Ok.... so let's play market manager... (Arthur Fontaine... 2.Oct.02)
. . . . . . . . . . . . *Work with Art, because he really s... (Ben Langhinrich... 2.Oct.02)
. . . . . . . . . . . . . . *I'm gonna spend some clock cycles ... (Nathan T. Freem... 2.Oct.02)
. . . . . . . . . . . . RE: Ok.... so let's play market man... (Stan Rogers 2.Oct.02)
. . . . . . . . . . . . Some ideas .... (Andrew Price 7.Oct.02)
. . . . . . . . . . . . . . oops forgot to mention ... (Andrew Price 7.Oct.02)
. . . . . . . . . . . . . . . . shame shame Andrew (John Head 7.Oct.02)
. . . . . . . . . . . . . . . . . . * Heheh, well, I had to try. Bear i... (Andrew Price 7.Oct.02)
. . . . . . . . . . . . . . RE: Some ideas .... (Nathan T. Freem... 7.Oct.02)
. . . . . . . . . . . . . . . . what version are you basing this of... (John Head 7.Oct.02)
. . . . . . . . . . . . . . WAS pricing for SME's seems to be c... (Andrew Price 13.Nov.02)
. . . . . . . . . . . . . . need to sell 5x more (Hans Haraldsen 13.Oct.02)
. . . . . . . . . . . . . . . . I didn't say it would be painless..... (Andrew Price 16.Oct.02)
. . . . RE: I'll check with the team (Nathan T. Freem... 30.Sep.02)
. . . . . . Oh No, this is not April 1st so (Heini Schwammer... 1.Oct.02)
. . More info on new pricing model (Arthur Fontaine... 2.Oct.02)
. . . . RE: More info on new pricing model (David Lovelock 2.Oct.02)
. . . . . . RE: More info on new pricing model (Alan Lepofsky 2.Oct.02)
. . . . . . . . RE: More info on new pricing model (David Lovelock 3.Oct.02)
. . . . . . . . . . RE: More info on new pricing model (Alan Lepofsky 3.Oct.02)
. . . . . . For the moment, you can buy at curr... (Ben Langhinrich... 2.Oct.02)
. . . . Utility Server FAQ (Arthur Fontaine... 2.Oct.02)
. . . . . . RE: Utility Server FAQ (Todd Bannar 22.Oct.02)
. . . . WebSphere Entitlement FAQ (Arthur Fontaine... 2.Oct.02)
. . . . Notes is now DEAD here (Maintenance... (Brian T McGloin... 3.Oct.02)
. . . . . . RE: Notes is now DEAD here (Mainten... (benpoole 3.Oct.02)
. . . . . . and what will they move to for mess... (Alan Lepofsky 3.Oct.02)
. . . . . . . . RE: and what will they move to for ... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . without knowing your infrastructure... (Alan Lepofsky 3.Oct.02)
. . . . . . . . . . . . RE: without knowing your infrastruc... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . . . . . Brian... re: without knowing your i... (Nathan T. Freem... 3.Oct.02)
. . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (Nathan T. Freem... 3.Oct.02)
. . . . . . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (Nathan T. Freem... 3.Oct.02)
. . . . . . . . . . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . . . . . . . . . . . . . . . . . RE: Brian... re: without knowing yo... (David A Bell 4.Oct.02)
. . . . . . . . . . . . . . Get R6 now and stick with it foreve... (Neal Howard 3.Oct.02)
. . . . . . . . . . . . . . . . RE: Get R6 now and stick with it fo... (Brian T McGloin... 3.Oct.02)
. . . . . . . . . . . . . . . . . . RE: Get R6 now and stick with it fo... (Neal Howard 3.Oct.02)
. . . . . . . . . . . . . . . . . . You can still renew your contract u... (Alan Lepofsky 4.Oct.02)
. . . . RE: More info on new pricing model (Michael Kobrows... 3.Oct.02)
. . . . Small organizations lose out (Matthew T Hamme... 21.Oct.02)
. . . . . . * Exactly the kind of case my sugge... (Andrew Price 21.Oct.02)
. . . . . . your desicions are not $2300, renew... (Alan Lepofsky 21.Oct.02)
. . . . . . . . RE: your desicions are not $2300, r... (Matthew T Hamme... 26.Oct.02)
. . . . . . . . . . renewals before Jan 2003 are based ... (Alan Lepofsky 26.Oct.02)
. . . . . . . . . . . . RE: renewals before Jan 2003 are ba... (Matthew T Hamme... 30.Oct.02)
. . . . bind Domino services to one CPU (Thomas Baeuml 22.Nov.02)
. . Rollover of current licenses takes ... (Matthew T Hamme... 1.Nov.02)


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