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Eric Thomas <[log in to unmask]>
Wed, 10 Nov 1993 18:45:25 +0100
text/plain (117 lines)
I am receiving  an increasing amount of private  requests for information
on  the  status  of  the  CREN/L-Soft negotiations.  While  it  would  be
inappropriate for me to say much  until the negotiations are over, people
have  bosses who  ask  legitimate  questions and  whose  patience is  not
infinite, with of course the risk  that they blame L-Soft for the endless
delays and decide not to license our products. I will try to give as much
information as I can without breaking  any secret. This means I will only
give you L-Soft's perspective, as I cannot speak for CREN.
 
The negotiations started around mid-October  and are expected to continue
until the  end of the  month, which is the  hard deadline. From  Dec 1st,
L-Soft will  no longer accept  to discuss conditions; our  proposals will
remain, but it will be "take it or leave it" until Jan 1st, at which time
the offers will  expire. The reason for this hard  deadline (announced in
October)  is that  L-Soft does  not think  it is  useful to  continue the
negotiations longer than that. Everything  has already been discussed, we
are just not  agreeing on the prices and conditions.  Both parties should
have all the necessary elements to make an informed decision, and time is
of the  essence. At  any rate, this  means there will  be a  pretty final
answer within 20 days, and an absolutely final one a month later.
 
If an agreement is  reached, it will probably take the  form of a service
license for all CREN sites that were running LISTSERV and/or LMail on Sep
1st, 1993, excluding, of course, sites which left CREN since then. L-Soft
has not been asked  to make an offer that would  include "new" sites. The
license would be valid from Dec 1st, 1993 to Jun 30th, 1994, which is the
end of CREN's fiscal year. L-Soft was asked to make an offer for (normal)
category II  service, and one for  a special "category III+"  level which
would include  access to new versions  and to bug fixes,  whereas support
would be  provided by CREN,  presumably in a more  cost-effective manner.
Under this option,  all questions and bug  reports would have to  go to a
CREN-designated  helpdesk,  which  would  be  responsible  for  answering
questions and  passing bug reports  that are not disguised  "user errors"
back to L-Soft  for troubleshooting. It should be noted  that, under this
scenario, L-Soft would not receive any money for technical assistance and
would thus provide no technical assistance at all. If the helpdesk failed
to answer a particular question, L-Soft would not come to the rescue.
 
After July 1st,  people would have the option to  get individual licenses
through CREN with volume discount.  This is actually available whether or
not CREN gets  a license for Dec-Jun. Basically,  any institution willing
to send a  check in advance on  behalf of a large number  of customers of
the same category  (academic in that case), and able  to provide a "point
of expertise" through which all requests  for assistance have to be sent,
so that  questions that have already  been asked can be  answered without
going back to  L-Soft, is entitled to a volume  discount. While the rates
and  exact  conditions may  change  depending  on market  evolution,  the
general principle will remain: if you help us cut down our costs, we will
reward you with a discount.
 
At any rate, because CREN would only  be writing a check on behalf of its
members and  would not  be the  organization liable for  your use  of the
software,  all member  sites will  have  to agree  to L-Soft's  licensing
conditions, no matter how the  products are eventually licensed. In order
to save time, you should order  a copy of GA9305-2.PS from LISTSERV@SEARN
and  send it  to  whoever  reviews contracts  at  your  site. A  suitable
"Schedule A" would  be provided in due course if  a collective license is
issued.
 
On the  topic of access  to new versions,  L-Soft plans to  release LMail
1.2a  in  about  a week,  possibly  two  if  some  PROFS changes  we  are
evaluating  are  implemented.  LISTSERV  1.8a will  be  released  at  the
beginning of  December. EARN sites  and US  sites with a  private service
license will get the new versions automatically, as before. The situation
is more complicated for sites which do  not have a service license at the
time  the  software  is  released. The  "service  license"  scheme  funds
development through regular customer payments that can be easily budgeted
in advance,  as opposed to  one-time "upgrade charges" whose  amounts and
dates of  payment are unknown.  In order for  this to work,  the customer
must pay continuously  even though licenses are only issued  from time to
time,  simply because  development and  its associated  costs are  also a
continuous  process. A  customer licensed  for  1.7f who  gets a  service
license in July 1994  and wants a copy of the latest  version has in fact
not paid  for the  corresponding development costs.  If the  upgrade from
1.7f to the latest version were free,  there would be no incentive to get
a  service license  until you  badly need  new functionality.  To take  a
concrete  example,  the  license  we   were  negotiating  with  CREN  was
originally supposed to start on Nov 1. CREN said it wasn't very realistic
due to incompressible administrative delays, and this was moved to Dec 1.
Of course  when they realized that  this decreased the price  tag without
any drawback other than  making people wait a bit more  for their copy of
the new  version, they wanted  to push the  beginning date further  on to
save money. It  is a legitimate reaction,  but one we can't  allow as the
income pattern  would no longer  match our  expenses, and we'd  be giving
away several months of work for free.
 
Anyway, as far as individual licenses  go, we understand that people have
been waiting for the outcome of the CREN/L-Soft negotiations and it would
not  be fair  to charge  license upgrades  when there  was no  attempt at
"cheating"  in the  first place.  We do  however want  to give  people an
incentive to get a  license as soon as possible, and  not wait until July
or whenever users start rioting :-) So we have decided:
 
1. That  there will be no  upgrade charge for people  ordering a (yearly)
   license before Feb 1st, 1994.
 
2. In February, March and April, the upgrade charge will be two months of
   prorated service charges, ie you will be paying 16.7% extra only.
 
3. After that, upgrade charges  will be calculated normally (service from
   Dec 1, capped). Note that there is no upgrade charge if you purchase a
   permanent right  to use license  to replace  the free license  tied to
   your CREN/BITNET  membership. In other  words, if your  management has
   already decided  to leave BITNET,  you are mostly  unaffected because,
   assuming you  are keeping  VM, you  will need  to get  a right  to use
   license for LISTSERV-TCP/IP anyway.
 
You can  help expedite  things by running  contracts and  budgets through
your management now, so  that you are in a position to  place an order in
January if  the CREN/L-Soft negotiations  fail to result in  a collective
license. If  we do reach agreement,  you will need to  have the contracts
approved anyway, and the budgeted money  will be needed from July 1st. In
other words, you are not doing superfluous work, no matter what the final
outcome is.
 
  Eric

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