Tom Brandt writes,

> I have been reading the posts on the future of Interex, and listened to the
> discussion (at least at our table) at the HP3000-L lunch about same, with
> considerable interest.  But, it occurs to me (as I am sure that it occurred
> to many of you)  that the Apps-on-Tap initiative may mean the end in the
> middle future of HPWorld and Interex as it is presently configured.  (For
> those who haven't a clue what I am talking about, Apps-on-Tap refers to
> internet-hosted applications.  This is apparently a big part of HP's
> e-Services push.)

<snip>

As someone who discussed this quite a bit with HP (since we now have a customer
who wants to go this route), I find this distribution method quite good for
apps that run over the internet - mostly web-based applications.

The Apps-On-Tap distribution model will not just affect HP, but Microsoft and
others are contemplating or planning such models.  It's a very cost effective
way to license software as it cuts that large initial cost that many people
complain about and spreads it out.  It also changes the traditional model a bit
in that "you pay only for what you use".

Given that certain products are commodities - ODBC drivers for instance - where
applications are built around these tools - if the actual (or perceived) use
dosen't justify the initial cost, "Apps-On-Tap" actually makes some sense.

Also - vendors themselves may adopt this model, or a variation of it (called
Rental, Timesharing, etc).

Overall, this is a response to two things - efficient distribution of software
using the internet as a vehicle, as well as making software more affordable to
users.

For the vendor, it also helps the vendor as it creates a more predictable
cash-flow model.  Typically, a customer pays a large up-front licensing cost
plus support, then a lower support cost each year thereafter.  For some
products, the non-payment of support allows the user to keep using the
software, but offers no support - for others, that software stops functioning
if support is not paid.  In either case, there is no guarantee that the
customer will continue with support plans, which fund support activities plus
R&D for enhancement.  The Apps-On-Tap model makes it more cost-effective for
the customer (where it fits) plus creates a more predictable cash-flow model
for the vendor, allowing them to better plan for enhancements as well as well.

(I think I said it in a prior post:  Nothing in this world is free -- but if
the cost of a product can be made more palatable, or better justified on a "per
use" or "per transaction" basis, then this turns in to a win-win... for the
customer and for the vendor).

Just my $0.02 worth...

Joe

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