Milestone's Unprecedented Support Charges

Author: John Honovich, Published on Mar 11, 2012

Following 2 years of unprecedented licensing price drops, Milestone is now implementing unprecedented support call charges and restrictions on upgrades. While support policies tend to be an afterthought, Milestone's groundbreaking approach will have a major impact on their competitive positioning. In this note, we examine the details of what Milestone is doing and how we believe this will decrease their competitive value for small to mid size projects but increase Milestone's poor profitability.

[UPDATE: For clarification and new details, see our Milestone Support Plan Take 2.]

********

*** ******* ** *** ******* *******:

  • *********** **** *** **** ** *** ******* *** ********* *******. Online **** **** *** ***** *** **** ****** ** *********** software **** ****** ****. ****, ** ** ***** ***** *** to ** * ********* ***, *** **** **** ** ****. Otherwise, * **** ****** ** ********.
  • * ****** **** **** $*** **** *** ** *** * specific **********, ******* *** **** ***** * ** ** *******. Tickets *** ** ****** ** ****** **** * ****** ****. Alternatively, *********** *** *** ***** ** ******* *** * *********** discount. *******, ******* **** ***** *** **** ** *** *** of *** **** **** ** ****.
  • ** *** ***** **** ** **** ** *** ********* ********* support.
  • ****** ***** **** *** **** ** ********* ** ***** **** current ********* ******** ** * **** ******* ****. **********, **** without ****** *** *******, ***** ***** ******* ** *** **** recent *****. ****** ***** *** ********* ** ******* *** *******.
  • ********* ** *********** ******* * "*** ******* *********" **** ****** ***** ******* * ******* ******* **** ** buy *** ******* ********* ** **********. **** **** ********* **********, users ******* * **** **** **** ** *** **** ******* cost ** **** **** ****** ** ******* ****** ***** ** software ********.

********* **** ** *** ********* ********* ** *** **** **** doing ****:

“********* ******* **** ***** **** *********** **** *** ******* ‘*** size **** ***’ ********, ***** *** ******** **** ********* **** and ********** ** ********* *** ************* *** ******* ******** *****. Our ******** *** ****** *** * ****** ***** ** ******* and ** ****** ** *******. *** **** ** *** ** make ******* * ****** ****** *** ** ******** *** ********* on *** ***** ***** ******* ********* ******** *** *********, ***** is ********** *** ******** *** ********* ********* *** *** ******** in *******. ******** ****** **** ********* ** ***** *************, ********** when *** ******** *** ******* ** *** ******* ** ******** choices, *** *** ********.”

"******** *** *** ********* ******* ** ******** (** ******* *** software) **** **** ** ********** **** *** ** **** **** receive ******/****** ******** **** *** ****** ** **** *** *** what ** ******, **** ** ** ******. ******** *** *** Milestone ********* ** ************ ***-********* ****** ****** *** ****. **** approach ******* ********** *** *********** ******** **********."

Integrators ** *****

*** ********* *** **** ****** ** *********** ******** ********* *********, a ***** ********* ** **** *************. **** ** ***** ** Milestone's ********** ***** *********** '****** *********' ** ***** *** ******** and *** ***** '********* ********* ** ************ ***-********* ******'. ******** manufacturers **** **** ******* ********** ** ** ******** ** ************'* #* ********: ********** ******.

*******, ********* ** *** **** *** ************ ** ********* ******* policies ** ********** ****. ** ****, *********** **** **** ** expect ************* ** ******* **** **** ** **** ***** ***, routinely, **** *********** ** *** ***** ********** *** ** *** the *******'* *******. **** ****** *********'* *** ****** ** *********** territory **** ******** ************ *** ******** ***** ***** *******.

*** ************ ** ********** ***** **** ** ************ *******. *** that ********* ** ********** ********* ******* *** *************** *****'* '******', it **** ** *********** ** *** ** *********** ****** ***** for ******* ****** ** ********* ****. **** *** *** * major***** ** ********** ** * ****** **** ****** ******. ** ********* ***** ** *** **** **** ***** ******** make ********, **** **** *** ** **** **** **** ********?

Headaches *** ***********

*******, ** *** **** ** ******* * *** ** ********* for ***********:

  • ******** ******* *****- ***** ******* ***** *** *** ** *********, *********** **** be ********* ** ******** ** ***** *** *** ******* ***** and ***** ***********. ** ***** **** ***** **** * ******* on *** ***** **** * ************ ***** *** **** ** hour ** ***************. **** **** ******** ******* ***** *** *** integrator.
  • **** **** ** ******* ***** - **** ***** *********** **** **** ******* *** ******** **** work ********* ** ******************. *** ********, ** ******** *** * call **** ********* ******* ***** *********** ** ******* ******. ** turns *** **** ***** ******* ******** ** ** ******** *** password, ********* **** *** ******* ** *** ****** ****** *** create *** ** *** ******. * ********** ****** ***** *** this ** * *** ** ** ***** * ****** **** but ********* *** ***. ** **** * ******* ** *** phone **** ******* ** *******. ** ** ********** ***** ** pay $*** *** ****, ** ***** **** **** ** *****.
  • ****** ******** **** ****** ***** - *** **** ****** ***** *** ********** ** ***** **** current ********* ******** ** * ******** ******* ****, ****** *** likely ** ***** **** ****** *******. ** ***** ****** **** may *** ******* *** ******* **** **** ** ******** ************ (e.g., ******* ******, *** *****, ***.). *** ********, *** **** Arecont ******** ******* ** ******** ********* ******** **** ****** **** traditional ******* *******. *** ******** *** ** ********* ********* **** their *** ******* ** *** **** **** ***** ******** ********* system. ** ****, ****** *** *** ******* ******* **** *** becomes **** ********.

Decreases ***** *** ***** ** *** **** *********

** *** *** ******* ****** ** ***** ******* ******* ** smaller *** ***** *** **** ******** ***** ** *********:

  • ** *** **********, ******* ******* **** * **************** ****** ** support ***** **** ****** **** (*.*., * *** ****** ****** might ** *** ******* **** * ** ****** *** *** likely **** **** **** ******* * ** * ***** ** much). **** ** ******* ******* *********** / ***** ****** **** up ********** ** ****. *** *******, * ** ****** ********* system *** **** ~$*** *** ******** *** *** ** **** 3 ***** ***** *** *** ***** **** ********* **** **%. Additionally, ******* ************ ** ******** ******** **** **** ****** ******* support **** **** *********. **** ***** ******** ***** ** ******* 50% **** * *-* **** ******.
  • ********, *********** *** **** ********** *** * ***, ********* **** a ****** ***** ** ***** ** **** **** **** ********** in *** ****. ** ***** **** **** ********** ***** *********** from ******* *********.

Increases ****** ** '*****' ********* ***********

** *** **** ****, ***** ******* ******* **** ****** **** and ****** '*****' *********** *** ********* **** **** *********. *** these ***********, *** ******** ****** ** ******* ***** **** ** low *** *** **** *** ** ********* ** ****** ***** of *******. ******* *********, *** ****** ***** *** ****** ******* started ** '********' ** ********* **** **** *** ***********. *** too **** ***, ********* ********* ******* ** ******* ***** ******* up ***** ***** ******* *** ********* **** * *****. ** the ********, ** ***** ***** ***** **** **** *** ****.

Projection - ******* **, ******* ****** ****

********* **** ****** **** ***** ************* ** *** ******* ** their ******* ******. *********'********* ************* *** **** ******* ***** ***** ***** ** ** ***** ******. ** *********** ******** ****** **** **** **% ** ***** *** *** *****, ** ******* this ******* **** *************. ***, ********* **** ****** ****** ***** support ***** ************* ***** ********** * *** ******* ****** ** offset *** *** ******* ******** ******* ****. ***********, **** ******* *** value *********** ** ***** **** ***** ** *** **** ******. It ** ********** ** *** ***** **** *** *** ********* this ************* ******* ***** **** **** ***** ********* **** ******. The *** ****** **** **** ******* ******* ******.

**** **** ********* ********** **** ********** ****** *** ********** *** **** **** ****** ** ** the ********* ** ***. ** *** *** ****, **** *** ********* ********* **** steep ******* *** ***** ********* *******. ** *** ***** ****, increasing ***** **** **** ** * *********** *** ********* ***** like *** ******** **** ******* ** **** ******** ****** *****.

The ****** ******

*******, ** ***** **** ** ***** ** **** * *** impact ** *** ******:

  • **** **********: *** *********** ******** ** *********'* ***, ********** ** ***** core ***** ** *** **** ******, **** ******.
  • *********** *******: ***** *** ******* ** ************* *** ******** ******** *****, expect *********** ** ****** ***** **** ********** *** ********. 
  • **** **** ******?: ** **** ** *********** ** *** ** ********* ******** this **** ** ** ******* ** **** ***** **** ** much ********* ** **** ******* ** ***** '********'.
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