Palm Springs, California – Software provider ESReye announced today, during its annual developer summit, that it will respond aggressively to competitive threats from open source software products like QueueGeeIS and cloud-based services like MapBocks by raising prices.
According to Irwin M. Fletcher, ESReye Executive Vice President of Marketing, “It’s never been more difficult to stand out in the GeeIS software market but we are clearly the leader in high prices and we intend to stay there.” Despite successful gains in software industry market share by Lintux, OpenOffIS, OpenStreakMap and other so-called “freeware” products over the past several years ESReye intends to continue to pursue market leadership by focusing on high prices. When asked about this unique strategy, Mr. Fletcher replied saying “QueueGeeIS and other competitive software packages now provide nearly identical capabilities to ArcGeeIS and, as we explored opportunities to differentiate ourselves, we realized that pricing was a key feature where we were uniquely positioned to lead the way.” Mr. Fletcher said that higher prices would take effect as early as next week but declined to convey specifics, stating, “Like most proprietary enterprise software vendors we prefer to avoid transparency when it comes to pricing. We have found that by making it difficult to understand terms for individual or enterprise software license packages we are able to increase revenue on a per-customer basis and maximize profitability.”
When asked to comment on the move, a veteran software industry analyst who asked to remain anonymous said, “Hey, why not? Seems to be working for OraKool.”
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