Subject: New markets and new pricing for FSBs
From: "Stephen J. Turnbull" <turnbull@sk.tsukuba.ac.jp>
Date: Fri, 19 May 2000 14:49:35 +0900 (JST)

>>>>> "MO" == Michael A Olson <mao@sleepycat.com> writes:

    MO> I'd welcome advice on how to handle this.  My frank preference
    MO> is to leave my current pricing for my current market alone,
    MO> and figure out a way to do new pricing for the new market.  Is
    MO> there some kind of friction point that I'm not seeing that we
    MO> should exploit?

First point: well, if there isn't, doesn't that mean that your
server/desktop customers are at great risk, too?  In the not
so-distant-future those current sales you're worrying about
cannibalizing may just wither away anyway.

Second point: to what extent are these embedded devices upgradable?
Presumably they are less flexible than those desktop/server systems;
you're more likely to throw away a handheld and buy the next version
(heaven knows that's what they do with cellphones here, they must be
pushing 100% turnover per year).

Maybe you can sell to the existing market on the basis of scheduled
upgrades, do more post-sale service/customization/whatever.  The
embedded guys don't pay royalties, but you sock them with the whole
lump for _every_ upgrade.


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