Today, similar dynamics are driving companies to similar services for expensive applications such as Enterprise Resource Planning systems like SAP or PeopleSoft.
ASPs use a variety of charging algorithms for their services.
Some charge a yearly fee for each workstation. Both of these schemes are tantamount to a fixed fee. It is this latter case that we study in this paper. In this paper, we model the economic dynamics between the ASP and its potential customers. We model the ASP problem as a two-part pricing scheme with the following features.