By Ian Jones, 5 June 2001 09:50
NEWS Peoplesoft is to drop 'per user' pricing on its next generation CRM products, and move to a revenue-based model. The move will see almost 1,000 of Peoplesoft's existing CRM customers around the world shifted to the new system if they upgrade to Peoplesoft 8 CRM. The company's customer relationship management products have been priced on a 'per-user' basis since they were acquired in the 1999 buyout of Vantive. However, the decision to shift to a revenue-based model moves them in line with its other Peoplesoft 8 products. Rick Bergquist, senior vice president and chief technology officer at Peoplesoft, said: "We've chosen to go with revenue-based pricing, because we believe it offers the right sales metric." He added that if a piece of software is delivering high value to a company, and that company is making a lot of money because of it, then it's only fair that it should pay more than a smaller firm where the software is less key. "This is not about trying to increase prices, or even reduce prices, it's about a fair model," Berquist added. Peoplesoft 8 CRM will be available from 29 June. The company intends to start trying to sell upgrades to the 942 existing Vantive customers immediately.
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