There needs to be an overall system value view when looking at things like addons etc.

Does the extra functionality have value on it's own and for a specific audience, or does it provide general additional value to most users of the product?

e.g. if an addon package is specifically target at a vertical — e.g. finance — it may make sense to determine value and charge for it.

Keep in mind that the addon will likely need it's own stream of enhancements, support etc. and the users of it may have specific requirements that are not valuable to the general audience.

OTOH, a more generic addon that “improves performance” (for example) and has “value” to most customers is something that people will likely expect is free or included in their maintenance etc.

There's a strategic aspect to this as well. How do you want to grow you market and ecosystem?

A healthy ecosystem of 3rd party addon products can enhance the overall value (through perceived size, marketing breadth etc., differentiation etc.), but that ecosystem needs to be viable and buyers need to be comfortable purchasing addons from 3rd parties (which is not always the case with enterprise software).

Overall, choice is not a bad thing, but there are a lot of factors that need to be considered, and strategically, it must be decided whether breadth of offerings (plural) or depth of offering (single) is more important to the company and how they deliver (and derive) value.

Saeed

There needs to be an overall system value view when looking at things like addons etc.

Does the extra functionality have value on it’s own and for a specific audience, or does it provide general additional value to most users of the product?

e.g. if an addon package is specifically target at a vertical — e.g. finance — it may make sense to determine value and charge for it.

Keep in mind that the addon will likely need it’s own stream of enhancements, support etc. and the users of it may have specific requirements that are not valuable to the general audience.

OTOH, a more generic addon that “improves performance” (for example) and has “value” to most customers is something that people will likely expect is free or included in their maintenance etc.

There’s a strategic aspect to this as well. How do you want to grow you market and ecosystem?

A healthy ecosystem of 3rd party addon products can enhance the overall value (through perceived size, marketing breadth etc., differentiation etc.), but that ecosystem needs to be viable and buyers need to be comfortable purchasing addons from 3rd parties (which is not always the case with enterprise software).

Overall, choice is not a bad thing, but there are a lot of factors that need to be considered, and strategically, it must be decided whether breadth of offerings (plural) or depth of offering (single) is more important to the company and how they deliver (and derive) value.

Saeed