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PROGINET INTRODUCES SOFTWARE METER NEW PACKAGE MONITORS CUSTOMER USE OF VENDOR SOFTWARE

 PROGINET INTRODUCES SOFTWARE METER
 NEW PACKAGE MONITORS CUSTOMER USE OF VENDOR SOFTWARE
 UNIONDALE, N.Y., June 22 /PRNewswire/ -- Proginet Corp., a leading developer of open systems connectivity software for IBM host systems, today announced the first product that enables software vendors to record precisely how frequently and where their mainframe software is used.
 Software Meter gives vendors the ability to provide corporate customers a usage-based pricing system that offers several benefits -- customers avoid uneconomical tiered pricing structures when using designated software infrequently or departmentally, while vendors, by monitoring exact software use, obtain valuable marketing information and earn additional revenue that typically is lost to underlicensing.
 "We estimate that vendors lose ten to 40 percent of their high-margin revenue to underlicensing," said Joe Mohen, vice president, Proginet. "We see Software Meter as offering them the capability to recapture a significant percentage of those profits through exact tracking of how their software is used."
 Underlicensing has long been a problem for the mainframe software industry and is attributed in part to an inflexible tiered licensing system. Under this system, companies are forced to pay more for software run on a larger computer than on a smaller computer, with high- end fees triple that of lower-end fees. The system encourages theft and deprives the company of revenue when software is run on computers for which it is not licensed.
 MVS software theft usually occurs one of two ways. For example, the customer may license software for only one or two mainframes in a multi- mainframe site, but install it on all machines, or they may run software licensed for a less expensive computer on a more expensive computer.
 Software Meter addresses the problem by not stopping unlicensed use, but by charging for all use -- regardless of the platform. The ability to monitor use and charge accordingly is expected to add significantly to the vendor's margin.
 Additionally, usage-based pricing allows vendors to approach new customers who may want to implement the software on a limited basis but who shy away from high tiered costs. As the customer grows, the vendor is able to grow with them.
 For the customer, usage-based pricing offers a second option to those managers who have invested heavily in mainframe capability and wish to avoid downsizing just so that they can afford software.
 Software Meter automatically monitors IBM MVS/ESA system and application software use and furnishes the vendor with five pieces of information: software product name, customer identification number, units of usage, frequency of use, and platform size and type.
 The vendor's software package calls Software Meter via an application programming interface (API) and provides "usage units" (determined by the vendor) to the counter, which is stored in non- volatile memory. Software Meter incorporates security features that alert the vendor if the meter has been compromised in any way.
 Implementation of Software Meter requires the customer to have a Network Package Switching InterfaceTM (NPSI) and access to a public data network.
 Software Meter will be sold to software vendors on an original equipment manufacture (OEM) basis. It is available in July.
 Proginet Corp. is the developer of XCOM 6.2, now a product of Legent Corp., and many other connectivity products for IBM host systems. The company was founded in 1982 and is based in Uniondale, N.Y.
 -0- 6/22/92
 /CONTACT: James Kelley, of Proginet Corp., 516-228-6620; or Tom Breunig of Miller Communications, 617-536-0470, for Proginet/ CO: Proginet Corp. ST: New York IN: CPR SU: PDT


PB -- NE008 -- 2272 06/22/92 10:00 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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