Site Licenses and Other Real-World Intrusions

We recently finished a major pricing exercise with a start-up in the enterprise software space: tuning up their prices, improving their upgrade model, and looking at alternative pricing metrics (i.e. what to meter when quantifying the customer’s usage).  A great opportunity to match quantitative models against actual customer behaviors. During the engagement, the client’s sales team identified some real-world messiness that we (as product managers) would prefer to ignore: high-end customers who demand enterprise-wide licenses – instead of limited-use licenses tied to volume.  These are sometimes called “all you can eat” or AYCE deals.  Let’s describe the situation, then explore a few of the messy conclusions.

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