In this article, we will examine the B2B software pricing for telecom customers however many of these concepts could be applicable to other verticals as well. Overall pricing for telco B2B software is primarily driven by (mobile/ISP/fixed line/DSP) and (Size, Region, Average Sales Price, Sales Cycle, Greenfield, Swap, Modernization). We consider our product pricing to be typically composed of 3 elements: Software, Services, and Hardware/Infra (3PP HW and SW). In this document, we will examine the drivers which affect the pricing of each of these elements. Customer Segment Customer Profile 1. Software - software pricing Software pricing is derived from items sold.( ). Software Pricing is usually shown under 3 headings: Below, we will examine drivers which affect the pricing of each of these elements. what is sold, how many are sold Base Platform, Licenses, and Customization. 1.1 Base Platform Identify if the solution caters to mobile service only or ISP or Fixed line or a customer offering all the services (mobile/internet/fixed line/IPTV). Consider that budget (and Value Propositions) for different (and may vary hence we may need to adjust accordingly. Also, consider that Base Platform pricing is independent of subscriber count and as such will consider the which is being offered in case of customers offering multiple services (triple-play or quad-play customers). Customer Segments Customer Profiles) Base Platform Pricing primary service (Refer for Base Platform pricing). 1.2 License (OOTB) In this instance, we are considering that software licensing for all modules in our solution is calculated basis of . Hence, we should try and arrive at a for licensing our software. In the case of a mix of subscriber types, we can select one type as the ( Postpaid). All other types( prepaid) can be converted to the main type using a (1:1,2:1,3:1). subscriber count total subscriber count main type conversion ratio ( Refer for License pricing). 1.2.1 Subscriber Base (Mix) Main Type ( Postpaid) Conversion to main type ( prepaid to postpaid conversion): Take a 3:1 conversion ratio for prepaid to post-paid conversion. 1.2.2 Modules D*esign per subscriber price for each module. * Extremely important to identify if correct modules are being provided for our solution. 1.3 Customization One important driver for customization is . project scope 1.3.1 Feature Customization Per Module Additional Effort ( ) - For each module, there will be customization efforts to deliver the solution for a particular customer. as per scope design per module customization price. (Refer for Customization pricing) Custom Feature/Change Request Development ( ) out-of-scope items Role-Based Man-Day rates - Each **role such as PM, Developer, QA, etc.. may have different rates. design rates for different skill sets. Blended Man-Day rates - design single rate. Support for additional Technology/Networks (5G/Tetra etc.. ) - . In case the customer decides to deploy say 5G, our existing solution will undergo changes to support new technology. can be in-scope additional networks or out-of-scope design price for each new technology integration (Refer for Customization pricing) 1.3.2 Deployment (copies) Primary Site - (included). Additional Sites - . design price for each additional site irrespective of ACTIVE or PASSIVE 2. Services - services pricing Services pricing is derived from manpower deployment( , ). Services pricing is usually shown under 4 headings: Implementation, Warranty, AMC, and MS/Operations. where how many, and for how long 2.1 Implementation Implementation price refers to our costs for deploying our solution end-to-end. Hence key drivers here will be - resource count, the number of days resources are engaged for the project ( project plan duration), and the location of the project. 2.1.1 Location - ( ) where Geographical location is a key driver for services. Costs of living may vary between countries. Can design a tier-based system for classifying the majority of the countries and only lower tiers can be taken up the case by case for discussion. On-Site Standard - Lower services pricing. Others - Higher services pricing. Countries that have higher costs of living and other expenses. Remote - will typically have lower services pricing unless special restrictions for remote operations are to be complied with. 2.1.2 Resource Count - ( ) how many what of resources can also be considered? type 2.1.3 Project Duration - ( ) for how long 2.2 Warranty Warranty can be offered as . Duration can vary from zero months to one year, 2 years or 3 years. Longer warranty periods such as 2 years and 3 years are almost always paid in nature. Also, we can have a standard practice of free or paid no warranty and AMC can begin from go-live. 2.3 AMC - (Annual Maintenance Charges) SLA - (Service Level Agreements) Standard - lower AMC percentage. Please note we can have one standard SLA for its customers. Complex - higher AMC percentage. This is due to an increase in resource count to support special SLAs. Upgrade w/o upgrade - higher AMC percentage. can charge . services for upgrades with an upgrade - lower AMC percentage but upgrade after 2 years for a fixed percentage of license fees. Can charge . services for upgrades 2.4 MS/Operations Not covered here. 3. Hardware/Infra Our standard practice here can be to design standard BOQ ( Bill of Quantities) for pre-defined subscriber bases( customer profiles). 3.1 Physical hardware Design subscriber base slabs and standard hardware profiles for each slab. 3.2 VM-based BoQ Design subscriber base slabs and standard VM profiles for each slab. 3.3 Micro-services-based BoQ Below is a simple template for optimizing micro-service BoQ based on the various drivers.
