Question: What are the services rendered by Hosted SP? How has the nature of software deployment changed over time? What is the value-added by Hosted SP?

  1. What are the services rendered by Hosted SP?
    1. How has the nature of software deployment changed over time?
    2. What is the value-added by Hosted SP?
  2. STT Reflection: Hosted SP noted difficulty in converting customers with In-House, Customer Built solutions. How does that statement resonate with your experience with technology adoption?
  3. Evaluate the impact on the pricing model of one-time fee based model on ERP Advisors (which became Hosted SP) and ERP Advisors' customers
  4. STT Reflection: How could one-time fee based software impact your conversation on adopting new technologies?
  5. How does Hosted SP currently price their systems? What are the perceived margins for Hosted SP?
  6. What effect will ABC have on customer behavior?
  7. Explain how does the pricing matrix works (numbers at bottom of page 5 and top of page 6) ?
  8. What are the obstacles to successful implementation of ABC at Hosted SP? How would you address these obstacles?
  9. What is the profitability of the 8 customers listed in Exhibit 4?
  10. How do the margins based on ABC compare to the perceived margins of the current pricing strategy? How should Hosted SP act on this information?

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