Packaging Your IP for Differentiation, Part 7: Pricing your IP assets

Cloud computing brings immense benefits to customers by shifting the burden and risk of building, operating and owning the data center to cloud services providers and effectively turning IT into a pay-per-use utility. However, when IT becomes a utility, technology reselling partners are financially impacted by an ever improving self-service model, subscription pricing and the need to differentiate when their competitors are effectively offering the same utility. In this seven part series we look at how partners can package their own intellectual property (IP) assets to effectively differentiate and regain revenue lost to the cloud model.

• Part 1: Dealing with the cloud's disruption to the partner business model
• Part 2: Identifying your company expertise for packaging IP
• Part 3: Identifying your IP assets
• Part 4: Establishing the business case for packaging your IP
• Part 5: Defining customer scenarios for your packaged IP
• Part 6: Packaging your IP assets
• Part 7: Pricing your IP assets

In parts 1- 6, we looked how to identify your IP assets, chose the features that will align to specific customer scenarios and package them up. Here, we look at how to price your new product.

Pricing considerations

Taking into consideration the value of your product to the customer, your competition's offerings, the pull through effect on the rest of your business and common sense, the price for your packaged IP ought to ...