SCTM Pricing Rollout

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SCTM Pricing Rollout

• May 16, 2005

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Agenda

• Enterprise Global Pricing
• SCTM tiered pricing structure
• SCIM tiered pricing structure
• Report Developer tiered pricing structure
• Pros Cons
• Sample Scenario
• SCTM Existing Bundles
• Competitive Pricing
• Mercury
• QA

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Introduction of Enterprise Pricing

• SCIM
• Tiered pricing based on quantity per order

• SCTM
• Tiered pricing based on quantity purchased per
  order
• SCTM Add-on
• New price point for the Report Developer add-on
• Tiered pricing based on quantity purchased per
  order

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SCTM - Tiered Pricing Based on Quantity Per Order
Not cumulative. It does not apply to
quantities of seats owned.
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InetSoft Report Developer Add-on
Add-on Price Increase Price before v8.0 was
introductory Mercury charges customers 25,000
for 5 users
Average Discount Rate 60
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Add-on - Tiered Pricing Based on Quantity Per
Order
Price increase - (from 1,500 to 2,500) Segue
pays royalties of 1,000 per seat sold
Price will affect SCTM SCPM Report Developer
Add-on
Not cumulative. It does not apply to
quantities of seats owned.
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SCIM - Tiered Pricing Based on Quantity Per Order
Not cumulative. It does not apply to
quantities of seats owned.
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SCTM Tiered Enterprise Global Pricing

• Pros
• Provides an economic incentive for high-quantity
  purchases
• Decreases Sales overall discount rate
• Provides an open, transparent and flexible
  enterprise global pricing
• Cons
• POs with different price points
• Renewals revenue impact

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Reducing Sales Discount Rate
Existing SCTM List Price 4,500 40 SCTM
Seats 60 Sales Discount
Target Revenue 72,000
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Reducing Sales Discount Rate
Enterprise Tiered Pricing 3,375 40 SCTM
Seats ?
47 Sales Discount
Target Revenue 72,000
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SCTM Existing Bundles
SCTM Package includes 1 seat of SCTM and 1
seat of SCIM
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Competitive Pricing

• Mercury
• TestDirector
• Price based on
• Site, Area, Server
• Small, Medium, Large
• Complex and restrictive pricing structure
• Empirix
• e-Manager
• Web-only
• 3,000 per user

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Competitive Pricing

• IBM Rational
• TestManager
• Freely available to all users of Robot and
  Functional Tester
• Compuware
• QADirector
• 1-4 seats 4,700
• 5-10 seats 4,500
• 11-25 seats 4,250
• 26-50 seats 3,800
• 51 seats 3,300

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Competitive Pricing - TestDirector
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Competitive Pricing TestDirector Report Add-on
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Sample Competitive Scenario 1A
5 seats of defect tracking included
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Sample Competitive Scenario 1B
SEGUE
MERCURY
SCTM Package includes 1 seat of SCTM and 1
seat of SCIM 5 seats of defect tracking
included Node locked!
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Sample Competitive Scenario 2A
SEGUE
MERCURY
5 seats of defect tracking included
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Sample Competitive Scenario 2B
SEGUE
MERCURY
SCTM Package includes 1 seat of SCTM and 1
seat of SCIM 5 seats of defect tracking
included Node locked!
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In Sum, SCTM Enterprise Global Pricing is

• Aggressive
• Competitive
• Open
• Transparent
• Flexible

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Questions?