W. Chris Shank on Wed, 16 Oct 2002 13:19:17 -0400


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RE: [PLUG] OT: Linux Business Forum


More great feedback. thanks.

>> 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?
>>



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