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Processor-based pricing ripe for change

By James Niccolai and Ashlee Vance , IDG News Service , 12/19/2002
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New hardware designs including server chips that combine multiple CPUs on a single processor will challenge the way enterprise software vendors price their products and could eventually force them to adopt new pricing schemes altogether, according to analysts.

Most large businesses pay for their databases and enterprise applications on a per-processor basis, coughing up an annual license fee based on how many chips they use to run their software. The model is simpler than pricing on a per-user basis because vendors and customers don't have to constantly keep track of how many employees, partners and customers are using their software.

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