SOFTWARE PRICING FOR CLUSTERS

[Jim Phillips]

On Wed, 24 Jul 2002, Jim Fraser wrote:

> With regard to scientific software pricing for clusters, what do you guys
> consider reasonable model for pricing?  Lets say the basic price for some
> given software is 50K for 1 CPU. What do you think is reasonable for
> increasing numbers of CPUs.

First, would more processors make a single calculation faster, or just
enable more 4-cpu calculations at the same time?  If it's more
calculations then you would apply your standard volume discounts.

If a single calculation actually runs faster, then it's a question of what
value that has for your customers.  For derivative pricing there could be
quite a premium, but none for calculating life insurance rates.

-Jim