As of May 1, 2005 Sawtooth Software will begin selling software and version upgrades under a new per-seat licensing and pricing policy.
The existing Category licensing and pricing policy has been in place for over 20 years. Even though it has been easy to manage and has served us quite well over the years, it is not sustainable into the future. There are three main flaws with the current Category licensing policy:
- Category I, II and III licenses have been restricted by geographic locations. For example, a Category I license is limited to users at a single geographic site. While this may have made sense 20 years ago, it doesn't accommodate the common practice of virtual offices today.
- Category licenses involve licensing a recognized department, team, or business unit within the licensed organization. All people within that department (whether using the software or not) needed to be counted. The requirement to count non-users as part of the licensed group always seemed strange, and this policy assumed more vertical organization structure than is common today.
- The Category licensing and pricing policies have led to smaller companies paying significantly more per user than larger companies. For example, a one-person independent consultant has paid the same total price as a large company that establishes up to a 10-person marketing science department at a single site.
The Category licenses have also been difficult for users to understand. We suspect that only a minority of customers actually understand the Category policy.
As you surely understand, it is difficult to alter procedures that have been in place for over 20 years. We have rarely raised any price for our software over our history. Yet, we recognize that this new pricing policy will mean a price increase for many of our users. We respect and appreciate our colleagues and friends, and therefore approach this change very seriously.
New Policy: Effective May 1, 2005
- Sawtooth Software licenses will be sold by the number of users. Each user may install the software on multiple PCs in multiple locations for a single person's use. Users do not need to be working from the same location. Each user should register online with Sawtooth Software to receive technical support and update notifications. Licenses are transferable between users within the organization (once per user per year), as long as the License Administrator notifies Sawtooth Software and the replacement user registers online.
- The initial license fee for a 1-user license will be the same as the current Category I license (with the exception of CiW and Ci3 licenses, which will see a reduction in the initial licensing price). Every additional user after the first (of the same software component and system size and version) managed by the same License Administrator will be charged at 20% of the initial price for CiW and Ci3 systems, and 30% of the initial price for all other systems. To see a comparison between the new and old pricing, please visit: www.sawtoothsoftware.com/pricing2.shtml
- All users are entitled to free technical support.
- Upgrades (both of system size and version) must be done as a block, for all users of a particular software component organized under a single License Administrator.
- All purchases of software after May 1, 2005 will be under the new licensing and pricing policy. Upgrade credits for earlier versions still apply. The only exception will be system size increases for old "Category style" licenses within the same version (such as upgrading from ACA/10 to ACA/30), which may continue under the previous policy and prices.
- For existing users who do not wish to upgrade, we will continue to support their old licenses (our track record has been to support older versions in terms of bug fixes for around 3 years and to offer technical support for often 10 years).
- Client Conjoint Simulators (CCS) will continue to be sold as under the current policy. A single licensing fee covers an unlimited number of users within the licensed organization.
- Academic licenses for teaching purposes will also continue as per current policy. A single licensing fee will cover the licensed school.
As many of you know who have asked for additional discounts, we do not offer them. Our users can be confident that we have applied and will continue to apply our licensing policies uniformly and equitably.