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Subscriptions, Memberships and Value

OSDC matches the value of software to the consumer with a return to the producers of the software. Aligning value is the goal. The model requires rethinking some old ways. Value for software takes on a different meaning when software is not the goal but rather the enabler of a separate, revenue generating goal. The value depends on what the consumer does with the software and not how much the software vendor can charge for the software. For example, the value of network security management software may be low to a small business who would like to secure communications to their single branch office but enormous to a manufacturer of network security hardware seeking to reduce the cost of managing their products. It is a convenience for the former whereas it may be a distinguishing core feature for the latter.

To capture this variety of value in a consistent and fair manner, OSDC offers four levels of investment in the development process (Underwriting Member, Product Line Member, Supporting Member and non-Member) and two distinct areas of value. Those who find only minimal value in the use of the product and are looking primarily for user support will find their value expressed by subscriptions alone. Those who have a more critical need for the product and need both product support and product development will desire both subscriptions and some form of membership.

Memberships

Memberships are targeted toward those who desire to foster the development and maintenance of software in the OSDC portfolio. Members not only help fund the development effort but have input into the development process. The OSDC model always reinforces the understanding that the software is being developed for its members. It must follow development directions which meet their needs.

Members provide a fixed annual fee and a subscription to the projects the members wish to support. Subscriptions are typically offered at a 50% to 90% discount from non-member rates. The intent of the two components of the membership cost is to create some measure of scale. In other words, the gross value of the software to a consumer who uses 100,000 units is generally greater than the value to a consumer who can only utilize 100 units.

The membership fee and subscriptions are payable in twelve monthly installments due at the beginning of each month of membership. Members are free to contribute over and above the membership fee. That may sound like an unusual statement to those who are used to buying software rather than funding development. It makes perfect sense when one recognizes that OSDC is not selling software but rather making software available to consumers so that they may derive revenue from the use of the software. If a member wishes to accelerate or enhance development of a product because it will produce more value for them, they are free to do so. It is all about the value the consumer derives from the software and not the price of the software.

There are three forms of memberships: Underwriting Memberships, Product Line Memberships and Supporting Memberships.

Non-Members

Those who desire to support product development or receive user support for a product in the OSDC portfolio but who do not have a strongly vested interest in the development of that product may wish to simply purchase support subscriptions to the products they desire. Subscriptions are also an option for smaller companies who do have a strong interest in the product's development but cannot justify the expense of a subscription.

Subscriptions are purchased per unit per year and are payable at the beginning of the support year. They entitle a subscriber to support for all issues directly related to the product.

Photo credits: NASA, http://www.dwyer.de