Users limitation

[mohamad]

Hello everyone,
Maybe this question sounds casual. But I dont really know what is a relationship between the number of users and the software price?!
What I mean is, why do the IT companies such as Microsoft increase their prices when the number of users rise even in On premise solution?!
Is it because of database limitation? Performance? Business? Or what is the main reason?
I would like to know the impact of the number of users on the software(solutions)? And how the software sellers can handle these problems?

I would appreciate that if you could give a technical answers.
Thanks in advance

[skawid]

More users can increase the cost. If it’s a hosted solution for example, more users will use more of your web server’s processing time and storage.

This is really the wrong way to think about it though - prices aren’t decided based on cost to the seller, but on value to the buyer. If your customer has more users using your software, your software is likely more valuable to your customer, so your customer will pay more.

[Jethro]

Hey Mohamad,

General the charges apply to seats, i.e. how many licences a client has purchased, and is based around increased numbers lead to the possibility of increased support. For example if you have 1 licence then on average maybe a call a month if that, if 100 licences then the possibility of 100 calls.

As to limitation, it depends on database/software. A lot of heavy duty software can handle 100k plus users with no effort even with 100s of gigs of data, don’t think the same applies to say a vb solution using a desktop database.

Hope that helps.

[mohamad]

Thanks for your time and consideration.