All technology pricing is "irrational"

A discussion at ZDNet focuses on how "irrational" Microsoft pricing has become. As I wrote here, enterprises should look at consumer pricing for more pricing data points and leverage - there are clear arbitrage opportunities with most vendors who sell both to consumers and enterprises.

But I would suggest pricing across enterprises is just as "irrational" - opportunistic is a better term. Many enterprises write "most favored nation" or periodic benchmarking clauses in their contracts. Most vendors will resist such clauses or some will cynically steer customers to benchmarking firms which provide benign (to vendor) benchmarks.

As a software vendor told me once - we pretty much know what the minimum transaction value will be, every other detail is optics. The problem is the "transaction value" definition is all over the place with discounts, vertical pricing units, global pricing units, training units, implementation units and rates.

From a buyer perspective, the safe assumption is there is little standard pricing. Competitive bids, transparency on vendor costs, peer conversations, volume leverage, "quarter-end" leverage  - all these are tools need to be brought to bear in a sourcing and negotiation process. Only way to bring some sanity - or at least reduce buyer remorse - in an irrational pricing market.