Solved

SPLA price increases - how do you charge your customers?

Posted on 2014-01-20
1
470 Views
Last Modified: 2014-03-25
I guess this is more of a business question than a technical question.  I'm curious how other service providers are doing it and what they have found to be successful.  Our company is relatively new to the hosting market.  We typically sign a 3-year, fixed-cost contract with our customers.  This obviously has problems when Microsoft is allowed to increase their SPLA costs every year to whatever they want.  We include a modest "buffer" in our price to compensate for this.  But it's impossible to know if or by how much Microsoft will raise it's prices the following year.  Do you write that into your contract that the cost is subject to change depending on what MS decides what the new cost will be?  I do not see how a customer will agree to that.  So my question is - how do you do it?  Do you raise the price for existing customers when MS does, or do you eat the difference?  How can service providers be successful without knowing what the SPLA cost will be from year to year?
0
Comment
Question by:ITLighthouse
1 Comment
 
LVL 27

Accepted Solution

by:
davorin earned 500 total points
ID: 39795199
I'm not familiar with details in our contracts, but we are changing prices as Ms does. It is impossible to have a "modest buffer" and still be competitive, while Ms is rising prices for 20, 30, 40 and more %. On my opinion this is not good for our business, but I guess there is no other option then signing an annex to existing contract with every price change. The costumer still has the possibility to terminate the contract, if thinks that the prices are to high.
0

Featured Post

Free Gift Card with Acronis Backup Purchase!

Backup any data in any location: local and remote systems, physical and virtual servers, private and public clouds, Macs and PCs, tablets and mobile devices, & more! For limited time only, buy any Acronis backup products and get a FREE Amazon/Best Buy gift card worth up to $200!

Join & Write a Comment

User Beware!  This is a rather permanent solution to removing your email from an exchange server.  The only way to truly go back is to have your exchange administrator restore your mailbox from backups.  This is usually the option of last resort.  A…
When you upgrade from Windows 8 to 8.1 or to Windows 10 or if you are like me you are on the Insider Program you may find yourself with many 450MB recovery partitions.  With a traditional disk that may not be a problem but with relatively smaller SS…
Viewers will learn how to maximize accessibility options in an Excel workbook for users with accessibility issues.
The viewer will learn how to use a discrete random variable to simulate the return on an investment over a period of years, create a Monte Carlo simulation using the discrete random variable, and create a graph to represent the possible returns over…

707 members asked questions and received personalized solutions in the past 7 days.

Join the community of 500,000 technology professionals and ask your questions.

Join & Ask a Question

Need Help in Real-Time?

Connect with top rated Experts

15 Experts available now in Live!

Get 1:1 Help Now