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Message-ID: <8610300904.AA28714@ucbvax.berkeley.edu>
Date: Wed, 29-Oct-86 08:37:50 EST
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Posted: Wed Oct 29 08:37:50 1986
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1)	On Oct. 6th, at DECUS symposium in San Francisco DEC announced a dra-
matic change in its software licensing policy beginning on January 1, 1987.  
They intend to forbid the transfer of software licenses in the following cases:

	from one company to another as the hardware changes hands;
	delta upgrade of a license within a company as CPUs are upgraded 
		(in-cabinet upgrade is excepted).

This change of policy, if implemented would have far-ranging effects in the
industry.  There was a great deal of criticism of DEC at the conference from
all sides: users, OEMs, resalers, universities, etc.

2)	I have just received the October issue of Newman Computer Exchange
catalog and it is interesting to note the precipitous fall in used VAX system 
prices since the September issue.

		September	October		price drop

11/730 XAAE	$ 8,995		$ 5,300		41%
11/750 FA	$19,500		$14,995		23%
11/780 XAAE	$55,000		$42,500		23%

	No doubt other used equipment dealers are having similar 'fire'
sales, all due to the effective rise in the price of software.

3)	The October 20th issue of Digital News has a front page article
suggesting that DEC is retracting the second part of its announced change: 
it will maintain current upgrade conditions, i.e. delta pricing for software 
upgrades.


	My opinion is that DEC shot itself in the foot when it tried to forbid
license upgrades and is now trying to extricate itself from the mess by blaming
its employees at the Symposium.  I think that DEC is trying to collect more
revenue from software since hardware is getting cheaper and cheaper.  Maybe DEC
is trying to knock out the used equipment dealers by leaving them with cheap
iron.

	DISCLAIMER: These are only my views, not my employer's


		Felix Kreisel - MIT Plasma Fusion Center
		170 Albany str., Cambridge MA 02139
		(617)253-8686	KREISEL%ALCATOR.MIT.EDU@XX.LCS.MIT.EDU