Voted Best Answer
Jan 08, 2016 - 08:36 AM
I have not read anything regarding this on the ITAM Review, however two things come to mind regarding price increases for software maintenance:
A member of my team highlighted a case in Australia back in 2013 where Adobe was summoned to parliament to explain why Australians were forced to pay significantly more for its software than customers in other territories. Analysts had calculated that it cost more to fly to the USA buy Adobe Creative Suite and then fly back to Australia rather than purchase online in Australia.
Initially Adobe refused to attend, but when compelled the inquiry had extended and they were joined by Microsoft. Neither of the execs presented was able to defend their pricing policies that well and a few days later Adobe announced a reduction in its Creative Cloud Complete Subscription from $62.99 to $49.99 per month.
In the EU, we are lucky and are protected by some splendid anti-trust legislation that provides protections under “Prohibition 2: abuse of a dominant position”
“If your company has a large market share, it holds a dominant position and must take particular care not to:
- charge unreasonably high prices which would exploit customers
- charge unrealistically low prices which may drive competitors out of the market
- discriminate between customers
- force certain trading conditions on your business partners.
Calling the European Commission takes time, is not open to all readers of The ITAM Review, nor are some publishers of a size to warrant a complaint. Therefore SAM managers must work closely with both procurement and legal to ensure that their organisations are protected from publisher price increases, whatever the vendors market share. The most effective time to get protection is when software is purchased.
Price gouging is illegal in some countries but not all. I am not a lawyer and cannot comment on the legalities for all territories covered by the ITAM review; but the Australian case, EU law & the example contract wording shows how SAM managers can protect themselves while interest groups and government can successfully place pressure on publishers to price fairly.