Re: Good article on Moore Posted on RB by Sam Flagg
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posted on
Mar 30, 2007 06:13PM
Another part of our strategy is to create motivation through a tiered pricing structure—early licensees pay less than later licensees. The companies that can get through the decision-making process in a relatively entrepreneurial and unbureaucratic way will realize the fruits of being first or second or third, but not tenth. We always say, “By not purchasing a license, you’re making a decision that the higher price is okay with you.” That’s not a threat. It’s just a reality. We just don’t want there to be any surprises in the future.
The individual corporate culture plays a big role in whether companies decide to avail themselves of being an early entrant, or to wait until there are 100 licensees. You see a huge company like Fujitsu or HP making an excellent early decision, and then you’ll see others not doing so. Some companies have the idea that getting ahead of the curve is the way to go. But we also respect a company’s decision to evaluate, and then to wait—or not to act at all. We can only hope that the senior management and the shareholders understand the impact of those kinds of decisions.