Subject: Re: Development vs. aquisition costs
From: "Stephen J. Turnbull" <>
Date: Wed, 29 Dec 2004 22:53:08 +0900

>>>>> "kms" == Karsten M Self <> writes:

    >> >>>>> "kms" == Karsten M Self <> writes:

    kms> I did a quick calculation for my own configuration, using MS
    kms> Windows XP Professional as the base OS.  Rules were that
    kms> software on the Microsoft platform had to be proprietary and
    kms> fully-paid-up versions, where available.  Net cost: $4,522.

    >> Why is this calculation interesting?

    kms> Speaking for myself: I found it interesting putting numbers
    kms> on this.

OK, but you do admit that's an upper bound, and that even so it's
pretty damn low for what you get in terms of economic productivity?

Re CALs:

    kms> What I'm confused about are the specifics of when CALs are
    kms> needed, for what services, and when they're not.  It's
    kms> decidedly confusing.

Oh, _that_.  Don't think like a central planner.  This is just what
happens when transactions cost drop enough that "segments" can hive
off into independent markets: they get their own prices.  (License
fees are not transactions costs; they are revenue to the vendor.)

Vendors (including Microsoft) will require CALs for services where
they think they have monopoly power.  If they find out otherwise,
they'll change their policies.

    >> Obviously, servers like IIS will typically admit
    >> unauthenticated users, and they don't require CALs.

    kms> That's actually a bit of a change from earlier policies.
    kms> IIRC, NT distinguished between workstation and server in that
    kms> workstation was limited to some low number (five or ten) of
    kms> remote connections to *any* service, Web included, while
    kms> server allowed more concurrencies.  This was before a full
    kms> realization of what the Web was struck Redmond.

Could be; I didn't get a good idea of what past policy was.

The point of CALs is that they realized that they needed to be
able to adjust the pricing more flexibly than the server-connection-
count policy allowed.  The CAL-pack technology is what allows
these transactions costs to drop as alluded to above.

    kms> CALs can be bought in 5 & 25-pack kits.  As well as bulk.
    kms> AFAIU, which isn't much.

If you want to get at a gestalt of what gets CAL'ed and what doesn't,
I'd suggest googling for "CAL 5-pack" etc and seeing what the relevant
services are and what they cost.  I didn't really recognize most of
the services from glancing at them, but maybe you would---a lot seem
to be database-related (no surprise to you, I'm sure).

Institute of Policy and Planning Sciences
University of Tsukuba                    Tennodai 1-1-1 Tsukuba 305-8573 JAPAN
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