ÿþ<html> <head> <title>CIOs Clamor for Usage-Based Pricing</title> <link href="../html-include/html-script-include/multilevel_menu/suckerdiv.css" type="text/css" rel="stylesheet" /> <meta http-equiv="Content-Language" content="en-us"> <meta http-equiv="Content-Type" content="text/html; charset=windows-1252"> <meta name="keywords" content="outsourcing, outsourcing prices, outsourcing deals, contract negotations, outsourcing providers, compass"> <meta name="description" content="CIOs Clamor for Usage-Based Pricing"> <script src="../html-include/html-script-include/multilevel_menu/_suckerdiv.js" type="text/javascript" language="javascript"></script> </head> <body bgcolor="#003466" topmargin="1" leftmargin="1" rightmargin="1" bottommargin="1" marginwidth="1" marginheight="1" link="#173C7D" vlink="#173C7D" alink="#173C7D" style="text-align: justify"> <div align="center"> <table border="0" width="780" id="table1" cellspacing="0" cellpadding="0"> <tr> <td background="../html-include/images/body3.jpg"> <div align="center"> <!--webbot bot="Include" U-Include="../html-include/banner.htm" TAG="BODY" startspan --> <table border="0" width="756" id="table1" cellpadding="0" style="border-collapse: collapse" height="124"> <tr> <td width="757" bgcolor="#AEB3C7" bordercolor="#000000" background="../html-include/banner-oit2p.jpg" style="border-left-style: none; border-left-width: medium; border-right-style: none; border-right-width: medium; border-top-style: none; border-top-width: medium; border-bottom-style: solid; border-bottom-width: 1px" valign="bottom"> <div align="right"> <br> <br> <br> <br> &nbsp;<!-- <table border="0" width="100%" id="table2" cellpadding="2"> <tr> <td> <p align="right"><font color="#FFFFFF" face="Tahoma"> <span style="font-size: 8pt">&nbsp;</span><b><span style="text-decoration: none"><a href="../index.htm"><font color="#FFFFFF"><span style="font-size: 7pt; text-decoration: none">Home</span></font></a></span><span style="font-size: 7pt">&nbsp; </span> </b><span style="font-size: 7pt">|</span><b><span style="font-size: 7pt">&nbsp;</span></b></font><b><a href="../inquirenow.php"><font face="Tahoma" style="font-size: 7pt; text-decoration: none" color="#FFFFFF">Inquiry Form</font></a></b><font color="#FFFFFF" face="Tahoma"><span style="font-size: 7pt"><b>&nbsp; </b>|<b>&nbsp; </b></span></font><b> <font face="Tahoma" color="#FFFFFF"> <span style="text-decoration: none"> <a href="../outsource-quote.php"> <font color="#FFFFFF" style="font-size: 7pt; text-decoration:none"> Request for a Quote</font></a></span></font><font face="Tahoma" style="font-size: 8pt; " color="#FFFFFF">&nbsp; </font></b> </td> </tr> </table> --> </div> </td> </tr> </table> <!--webbot bot="Include" i-checksum="14779" endspan --></div> </td> </tr> <tr> <td background="../html-include/images/body3.jpg"> <div align="center"> <table border="0" width="96%" id="table2" cellspacing="0" cellpadding="0"> <tr> <td valign="top" width="170"> <div align="center"> <table border="0" width="170" id="table108" cellpadding="0" style="border-collapse: collapse" height="288"> <tr> <td width="170"> <table id="table111" width="170" height="50" border="0" cellpadding="0" cellspacing="0"> <tr> <td colspan="3"> <img src="../html-include/menu/Untitled-4_01.gif" width="170" height="7" alt=""></td> </tr> <tr> <td rowspan="2"> &nbsp;</td> <td valign="top"> <!--webbot bot="Include" U-Include="../html-include/buttons.htm" TAG="BODY" startspan --> <div class="suckerdiv" style="margin-top: 7px;"> <!-- <p style="height:8px; width: 150px; background:#CEDBFE;"></p> --> <ul id="verticalmenu"> <li><a href="http://www.outsourceit2philippines.com">HOME</a></li> <li><a href="#">ABOUT US</a> <ul> <li><a href="../outsource-company.htm">Our Company</a></li> <li><a href="../outsource-see-our-operation.htm">View Our Operations</a></li> <li><a href="../outsource-management-team.htm">Management Team</a></li> <li><a href="../pages-outsource/outsource-facilities.htm">Our Facilities</a></li> <li><a href="../outsource-partners.htm">Brand Services</a></li> <li><a href="../outsource-affiliate-partners.htm">Affiliate Partners</a></li> <li><a href="../outsource-portfolio.htm">Portfolio</a></li> <li><a href="../outsource-careers.htm">Careers</a></li> </ul> </li> <li><a href="../outsource-latest-services.htm">SERVICES</a> <ul> <li><a href="../outsource-web-development.htm">Web Development</a></li> <li><a href="../outsource-creative.htm">Creative</a> <ul> <li><a href="../outsource-multimedia-development.htm">Multimedia Development</a></li> <li><a href="../outsource-multimedia-3d.htm">3D Multimedia Audio/Video</a></li> <li><a href="../outsource-multimedia-video.htm">Video Editing</a></li> <li><a href="../outsource-multimedia-cgi.htm">CGI (Computer Graphics Imagery)</a></li> </ul> </li> <li><a href="../outsource-virtual-dedicated-staff.htm">Virtual/Dedicated Staff</a></li> <li><a href="../outsource-web-hosting.htm">Web Hosting</a></li> <li><a href="../outsource-seo.htm">SEO</a></li> <li><a href="../outsource-transcription.htm">Transcription Services</a> <ul> <li><a href="../outsource-transcription-business.htm">Business Transcription</a></li> <li><a href="../outsource-transcription-legal.htm">Legal Transcription</a></li> <li><a href="../outsource-coding-billing-medical.htm">Medical Coding and Billing</a></li> <li><a href="../outsource-transcription-medical.htm">Medical Transcription</a></li> <li><a href="../outsource-transcription-others.htm">Others</a></li> </ul> </li> </ul> </li> <li><a href="../articles.htm">IT ARTICLES</a></li> <li><a href="../news.htm">IT NEWS</a></li> <li><a href="../outsource-contact-us.htm">CONTACT US</a><li> <li><a href="http://www.htcando.com/oit2pform/inquirenow.php">INQUIRY FORM</a></li> <li><a href="http://www.htcando.com/oit2pform/outsource-quote.php">REQUEST FOR A QUOTE</a></li> </ul> </div> <!--webbot bot="Include" i-checksum="26857" endspan --></td> <td rowspan="2" valign="top"> <img border="0" src="../images/right-menu-shadow.jpg" width="7" height="190"></td> </tr> </table> </td> </tr> <tr> <td width="170" valign="top" height="19"> <div align="center"> <table border="0" width="94%" id="table168" cellpadding="0" style="border-collapse: collapse"> <tr> <td> <!--webbot bot="Include" U-Include="../html-include/news.htm" TAG="BODY" startspan --> <table style="border:1px solid #CCC" width="151" id="table3" cellpadding="0" style="border-collapse: collapse"> <tr> <td width="151"> <table id="table4" width="151" height="88" border="0" cellpadding="0" cellspacing="0"> <tr> <td width="170" valign="top" height="88"> <div align="center"> <table border="0" width="94%" id="table211" cellpadding="0" style="border-collapse: collapse" height="87"> <tr> <td bgcolor="#E1E1E1" height="18"> <img alt="" border=0 src="http://www.outsourceit2philippines.com/html-include/images/nav.gif" width="160" height="23" /> </td> </tr> <tr> <td bgcolor="#E1E1E1" height="18"> <div align="left"> <table border="0" cellspacing="3" width="100%" id="AutoNumber2" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111"> <tr> <td> <div align="left"> <table border="0" cellspacing="0" width="100%" id="table220" cellpadding="0"> <tr> <td> <!-- *************** EXTERNAL SCRIPT HERE **************** --> <script type="text/javascript"> /*********************************************** * IFRAME Scroller script- © Dynamic Drive DHTML code library (www.dynamicdrive.com) * This notice MUST stay intact for legal use * Visit Dynamic Drive at http://www.dynamicdrive.com/ for full source code ***********************************************/ //specify path to your external page: var iframesrc="http://www.outsourceit2philippines.com/html-include/external.htm" //You may change most attributes of iframe tag below, such as width and height: document.write('<iframe id="datamain" src="'+iframesrc+'" width="155px" height="450px" marginwidth="0" marginheight="0" hspace="0" vspace="0" frameborder="0" scrolling="no"></iframe>') </script> <!-- *************** END SCRIPT *****************--> </td> </tr> </table> </div> </td> </tr> </table> </div> </td> </tr> <!-- NOT INCLUDED!!! <tr> <td bgcolor="#E6EAFF" height="9" valign="top"> <div align="left"> <table border="0" cellspacing="3" style="border-collapse: collapse" bordercolor="#111111" width="100%" id="table213" cellpadding="0"> <tr> <td> <img border="0" src="../images/horizontal-line.gif" width="155" height="3"></td> </tr> </table> </div> </td> </tr> --> </table> </div> </td> </tr> </table> </td> </tr> </table> <!--webbot bot="Include" i-checksum="48765" endspan --></td> </tr> </table> </div> </td> </tr> </table> </div> </td> <td width="579" valign="top"> <div align="center"> <table border="0" width="100%" id="table169" cellpadding="0" style="border-collapse: collapse"> <tr> <td bgcolor="#FFFFFF"><span style="font-size: 4pt">&nbsp;</span></td> </tr> <tr> <td bgcolor="#000000" style="border-top-style: solid; border-top-width: 1px; border-bottom-style: solid; border-bottom-width: 1px" bordercolor="#000000"> <p align="right"> <OBJECT classid="clsid:D27CDB6E-AE6D-11cf-96B8-444553540000" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,0,0" WIDTH="565" HEIGHT="163" id="news" ALIGN=""> <PARAM NAME=movie VALUE="../images/news.swf"> <PARAM NAME=quality VALUE=Best> <PARAM NAME=bgcolor VALUE=#000000> <param name="menu" value="false"> <param name="wmode" value="transparent"> <EMBED src="../images/news.swf" quality=Best bgcolor=#000000 WIDTH="565" HEIGHT="163" NAME="news" ALIGN="" TYPE="application/x-shockwave-flash" PLUGINSPAGE="http://www.macromedia.com/go/getflashplayer" wmode="transparent" menu="false"></EMBED> </OBJECT> </td> </tr> </table> <table border="0" width="98%" id="table170" cellpadding="0" style="border-collapse: collapse">Europe's digital divide is north-south <tr> <td>&nbsp;</td> </tr> <tr> <td> <img border="0" src="../images/newsehader.jpg" width="561" height="37"></td> </tr> <tr> <td> <div align="right"> <table border="0" cellpadding="0" style="border-collapse: collapse" width="98%" bordercolor="#000000" id="table173"> <tr> <td> &nbsp;</td> </tr> <tr> <td height="25"> <table border="0" width="99%" id="table174" cellpadding="0" style="border-collapse: collapse"> <tr> <td> <p align="right"><font color="#021D6C" face="Arial"> <span style="text-decoration: none; font-size: 8pt"> <a href="../news.htm"> <font style="font-size: 8pt; text-decoration: none"> <span style="text-decoration: none; font-size: 8pt">&#9668; </span>back to news listing</font></a></span></font></td> </tr> <tr> <td> <p style="font-weight: bold; font-family: Calibri; font-size: 17.0pt; margin: 0in"> CIOs Clamor for Usage-Based Pricing<br> </td> </tr> <tr> <td> <p class="MsoNormal" style="text-autospace: none; margin: 5.0pt 0in" align="justify"> <font face="Arial" style="font-size: 8pt"> Eric Lai<br> www.itnews.com (Computerworld)<br> February 08, 2010<br><br>&nbsp;<br> Sick of overpaying for features they don't need or use, enterprise software customers are eager for vendors to adopt pay-per-use models that better align cost with consumption, according to an IDC report published last month. <br><br> Vendors that are eager to keep mining today's rich vein of upfront licensing revenue may resist. But they risk losing customers to software-as-a-service providers like Amazon.com Inc., which offer pricing schemes closer to true pay-per-use models, IDC said. <br><br> "Customers believe they have been forced to buy more software than they need or use," wrote IDC analyst Amy Konary. This creates a "value disconnect" that isn't alleviated by heavy discounting, she said. <br><br> Konary argued that vendors should move to pay-per-use models, under which they will have to do more to make sure customers are satisfied, and "where real value is in the ease, intuitiveness, and seamlessness of the experience." <br><br> She compared it to the music industry's shift from selling CDs to selling individual songs to customers, who are now empowered by software to manage their music collections the way they want to. She also likened it to Amazon's Web-based storage service, EC2 , which lets companies host their own software and pay for it based on the number of application-hours used. <br><br> That's not true usage-based pricing -- users pay the same rate whether the app is heavily or lightly used -- but it allows customers to "purchase at a more granular level than was previously possible," Konary said. <br><br> Vendors are justified in fearing they would lose revenue from usage-based pricing, she wrote, but CIOs want assurance that costs won't suddenly spike as a result of unexpectedly heavy usage. A compromise would be the kind of tiered pricing used by cell phone carriers, Konary said. <br><br> </font></p> </td> </tr> <!--<tr> <td> &nbsp;</td> </tr> --> </table> </td> </tr> </table> </div> </td> </tr> </table> </div> </td> </tr> </table> </div> </td> </tr> <tr> <td> <div align="center"> <!--webbot bot="Include" U-Include="../html-include/footer.htm" TAG="BODY" startspan --> <table border="0" width="780" id="table1" cellpadding="0" style="border-collapse: collapse" height="63"> <tr> <td width="780" background="../html-include/images/foot7.jpg"> <p align="center"><b><font face="Arial" style="font-size: 8pt"><br> <br> <font face="Arial"> <a href="../_private/index.htm"> <span style="font-size: 8pt; text-decoration: none; color: #FFFFFF;">home</span></a></font><font color="#FFFFFF">&nbsp; |&nbsp;&nbsp;&nbsp; <span style="text-decoration: none; font-size: 8pt"> <a href="../articles.htm"> <span style="text-decoration: none; color: #FFFFFF;">articles</span></a></span>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../news.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../news.htm"> <span style="text-decoration: none; color: #FFFFFF;">news</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-portfolio.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-portfolio.htm"> <span style="text-decoration: none; color: #FFFFFF;">portfolio</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-company.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-company.htm"> <span style="text-decoration: none; color: #FFFFFF;">about us</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-partners.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-partners.htm"> <span style="text-decoration: none; color: #FFFFFF;">partners</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="http://www.outsourceit2philippines.com/blog/"> <span style="font-size: 8pt; text-decoration: none"> <a href="http://www.outsourceit2philippines.com/blog/"> <span style="text-decoration: none; color: #FFFFFF;">blog</span></a></span></a><!-- &nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-management-team.htm"> <span style="font-size: 8pt; text-decoration: none"> <a dynamicanimation="fpAnimformatRolloverFP1" fprolloverstyle="color: #FF3300" onmouseover="rollIn(this)" onmouseout="rollOut(this)" language="Javascript1.2" href="../outsource-management-team.htm"> <span style="text-decoration: none">management team</span></a></span></a> --> <br> <a href="../outsource-latest-services.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-latest-services.htm"> <span style="text-decoration: none; color: #FFFFFF;">services</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-careers.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-careers.htm"> <span style="text-decoration: none; color: #FFFFFF;">careers</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-tell-us.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-tell-us.htm"> <span style="text-decoration: none; color: #FFFFFF;">tell us what you need</span></a></span></a><!--&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-see-our-operation.htm"> <span style="font-size: 8pt; text-decoration: none"> <a dynamicanimation="fpAnimformatRolloverFP1" fprolloverstyle="color: #FF3300" onmouseover="rollIn(this)" onmouseout="rollOut(this)" language="Javascript1.2" href="../outsource-see-our-operation.htm"> <span style="text-decoration: none">see our operations</span></a></span></a>-->&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; <a href="../outsource-contact-us.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../outsource-contact-us.htm"> <span style="text-decoration: none; color: #FFFFFF;">contact us</span></a></span></a>&nbsp;&nbsp;&nbsp; |&nbsp;&nbsp;&nbsp; </font><a href="../sitemap.htm"> <span style="font-size: 8pt; text-decoration: none"> <a href="../sitemap.htm"> <span style="text-decoration: none; color: #FFFFFF;">sitemap</span></a></span></a>&nbsp;&nbsp;&nbsp; <font color="#FFFFFF">|&nbsp;&nbsp;&nbsp;</font><font color="#333333" face="Arial"><span style="text-decoration: none; font-size:8pt"><a href="../pages-outsource/link-categories.htm"><span style="text-decoration: none; color: #FFFFFF;">resources</span></a></span></font></font></b></td> </tr> <tr> <td width="780" bgcolor="#003466"> <p align="center"><b><font face="Arial" style="font-size: 4pt"><br> </font><font face="Arial" style="font-size: 8pt" color="#808080"> <a class="seospan" href="http://www.seospan.com" target="_blank">SEO Outsource: SEO Span</a> | Copyright &copy; 2005 Outsourceit2philippines. All Rights Reserved.</font></b></td> </tr> <tr> <td width="780" bgcolor="#003466" align="center"> <table border="0" width="100%" id="table2"> <tr> <td> <table border="0" width="100%" id="table3"> <tr> <td> <p align="center"> <img border="0" src="../html-include/images/foot4.jpg" longdesc="Our Partners" alt="Our Partners" width="604" height="100"></td> </tr> </table> </td> </tr> </table> </td> </tr> </table> <!--webbot bot="Include" i-checksum="35975" endspan --></div></td> </tr> </table> </div> </body> </html>