For the most part, you need to represent value far in excess of the total lifetime cost, which includes half of the transition cost to the replacement.<p>Say your software is licensed at $10 per person using it per year. In addition to the $10, I need to consider the costs of installation, configuration, first level support, entitlement&#x2F;license management, and what it will cost me to extract the data and munge it into a usable form when we decide in three years that your competitor does it better.<p>Now consider that most companies offer lousy support for their products, so I also have to do a test roll-out to a small number of people, manage that, and figure out if it will all be worthwhile.<p>If you discount based on quantity, can I roll the test group into the main group? If you price in chunks larger than per-user, do I fall between your levels in some disadvantageous way?<p>Is it any wonder that I vastly prefer standard-protocol based, open-source applications with healthy user communities? No, it is not.