Jeyes, David (371) on Wed, 16 Oct 2002 13:07:16 -0400


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RE: [PLUG] OT: Linux Business Forum


Title: RE: [PLUG] OT: Linux Business Forum

> From: W. Chris Shank said:
> Maintenance contracts are a necessary evil for our business. Probably similar to
> extended warranties with cars. You can choose to renew or not. But I
> suspect that a small business with 20 workstations isn't buying a
> renewable support contract. Please correct me if I'm wrong,
> because I want
> to sell these support contracts for Linux, if I can.

Some small companies do tend towards renewable contracts, as if they have a peer to peer network they can simply box up any bad computers and ship them back. Some people feel this saves money versus keeping an IT person on staff. This could allow you to sell service contracts with a monthly fee. . .

Another viable approach is to sell "block time." A company could prepay for some number of hours (with a quantity discount) from 40-500 hours and then whenever they need help you charge against their account.

These are both very common in the small business support arena, as well as straight hourly consulting, which doesn't always seem as viable to a small business owner. They want to feel like they are covered in case something happens, not start looking for a solution once they have a problem.

I definitely think that you're on to something. Many small companies could really benefit from the cost savings of Linux, but would definitely want support and training. Offering them the support in migration and especially after could just be the push they need.

>
> How big is your business? Your deptment? Do you fall into the
> SME category?
>
> here's another question, since you are an IT manager: Does
> your headcount
> funding come from one pool and your software licensing, equipment and
> maintenance contracts another? Or do you have a shared pool?
>