Profile of Alan Pelz-Sharpe
News & Commentary Posts: 69
Articles by Alan Pelz-Sharpe
posted in October 2010
In the past week mega-vendor Autonomy saw its share price plummet by 20%. Much discussed in the financial press, it's also news that will be much discussed and publicized by Autonomy's competitors. Today I was asked by an advisory customer whether they should be concerned about the state of Autonomy?... So how did I answer?...
Software support fees often make up the bulk of the yearly IT budget. This is hardly surprising when vendors typically like to calculate support contracts on the basis of ~20% of list pricing per annum, in perpetuity. Even if you negotiate the initial licensing costs down to $500k, you may still pay $200k per year in support fees...