In our last issue, we told you about the BIGGEST CHALLENGE of nanocorp management. It's the 'Few Heads - Many Hats' time and resource management dilemma.

Since a nanocorp is a tiny, diversified corporate conglomerate, there are MANY parallel sets of LOTS of role-based hats to wear for EACH nanocorper. In our 'ruthlessly small' businesses there is no possibility for 'throwing more bodies' at a problem. EFFECTIVE SYSTEMS AUTOMATION is vital.

We related how Jim spent five days kissing every downloadable project management and similar software solution 'frog' he could get his hands on. We confessed our surprise that the two front-running offerings were Java-based.

As former hardcore Smalltalkers, we have a laundry list of things that we don't like about Java. These issues are largely programmer productivity and career satisfaction issues of a personal nature. Here, we are assessing Java as a solution delivery platform. Our interests are as users, not as developers.

Netmosphere's ActionPlan and Project Home Page shine...

Unfortunately, Moore's Law does not apply to software. It doesn't keep getting better, faster and cheaper. More to the point, the industry standard pricing model amounts to little more than de facto discrimination against small business, in general, and nanocorps, in particular.

Enterprise software product pricing routinely incorporates minimum seat requirements and/or site licenses. The net effect is that fewer seats cost more per seat. When both minimum seat requirements and site license price breaks are part of the same product pricing model, small businesses are hit with a double whammy.

Run the numbers with us on our intriguing Netmosphere software solution. A minimum five-user starter package, software licenses plus required support subscription, costs $3,050, or $610 per user. Ten and 25-user packs bring per user pricing to $516 or $372 per seat, respectively.

But when you take into consideration that JFS Consulting, our nanocorp, is committed to never being larger than its two founder/owner/employees, our cost is a staggering $1,525 per user for the same Netmosphere product!

The rationale for these price breaks used to be the 'single point of contact' efficiencies in support and maintenance. But with the rapid implementation of web-based and e-mail tech support, this explanation does not stand up.

Are very small businesses somehow less deserving of access to software technologies to improve their business? Should small businesses have to pay a premium of several multiples on a per seat basis for the privilege of using the same software that their slightly larger competitors use? We think not. And we think there is a simple solution.

Enterprise software vendors, adopt the nanocorp exemption

We understand that the conventional software pricing model is intended to provide leverage when dealing with lucrative, large corporate customers. If it's working, keep it. But please, enterprise software vendors, consider adopting 'the nanocorp exemption' into your product pricing plans.

If a prospective customer's ENTIRE WORKFORCE is SMALLER THAN YOUR PRODUCT OFFERING'S MINIMUM NUMBER OF SEATS REQUIREMENT, offer a pricing exception to bring the very small business' per seat pricing in line with your basic per user pricing.

Applied to the Netmosphere example, we sure would be happier paying $1,220 for this solution rather than the $3,050 required under their current pricing model!

Come on software vendors, wake up and reconsider. Nanocorps and other very small businesses can be a valuable component of your user community and marketing strategy. Treat us fairly and with respect and you will likely be pleasantly surprised at our contribution to your business success. Continue the de facto discrimination and we both lose.

As always, thanks for reading this issue of sohodojo's Rants and Raves newsletter,
    --Jim Salmons and Timlynn Babitsky--
    Hosts, sohodojo

Endpiece
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