[228] in Commercialization & Privatization of the Internet
Re: Usage Charges
daemon@ATHENA.MIT.EDU (Erik E. Fair" (Your Friendly Postm)
Wed Feb 27 21:20:42 1991
From: "Erik E. Fair" (Your Friendly Postmaster) <fair@apple.com>
In-Reply-To: <9102280015.AA22812@world.std.com>
To: bzs@world.std.com (Barry Shein)
Cc: com-priv@psi.com
Date: Wed, 27 Feb 91 17:56:16 -0800
Usage charges of any type make beancounters nervous because it means
that costs will be unpredictable unless you budget for the maximum,
as in Barry Shein's model. However, budgeting for the maximum makes
them see a "cost reduction opportunity" which you have to argue over.
Usage charges are there to provide economic incentive not to use a
service, or not to use it to its full extent. I prefer to have fixed
cost services in my budgets, because that keeps the beancounters off my
back, and I don't have to worry about how much I'm using. I have never
seen a usage priced service where buying the whole thing was more
expensive (if you're using it all, or want to) under fixed pricing than
"the whole thing" under usage sensitive pricing.
It has been my experience that beancounters behave the same everywhere,
and in some places, they unfortunately have control (like colleges and
universities).
Erik E. Fair apple!fair fair@apple.com
