TIBCO Shocks Wall Street With Integration Software Pricing Changes

By admin, August 26, 2005 12:00 am

Via Jeff Nolan and Sadagopan … Jason Stamper at Computer Business Review reports on his exclusive interview with TIBCO's CEO, Vivek Ranadive after TIBCO's announcement of "Time-Based Pricing" that shocked Wall Street. Time-Based Pricing, refers to enabling customers to pay for a bundle of software, services and maintenance over time. TIBCO is one of the leaders (or perhaps the leader) in the integration space (often referred to as a pure-play vendor in the integration space), so watching TIBCO is key.

I see some things most relevant to new and existing customers (as snipped from Stamper's writeup):

customers wishing to expand their use of Tibco's software may also find
the deal attractive, Ranadive said, for example those that wish to put
Tibco's General Interface Rich Internet Application (RIA) framework on
all of their users' desktops. "In the past that would cost millions,
but now they could consider doing that," Ranadive said.

Ranadive said
the new model will enable it to engage with customers that previously
it would not have been able to. The model is being rolled out
incrementally, but being made available to new customers as well as
existing customers who are expanding their use of products within
Tibco's portfolio. "I haven't had a single customer say they want to
switch, if they have already paid an up-front licensing fee," said
Ranadive. "But we have had some new opportunities thanks to the new

Steve Shu

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