BIG SHIFT IN SELLING SOFTWARE
Large companies, which buy everything from yellow pads to computers by the truckload, are tired of buying programs for their personal computers in twos and threes at near retail prices. In an effort to win volume discounts and gain more convenient purchasing arrangements, they are forcing major changes in the distribution of computer software. The companies, which might order hundreds of a particular program, such as Lotus's 1-2-3, are turning more to specialized mail order operations and to a new breed of company that supplies software in large volumes at discount prices. The large corporations are also, in some cases, forcing software producers to sell to them directly, which software companies had been reluctant to do for fear of offending the computer stores. Virtually all major software companies, including the leaders, the Lotus Development Corporation and the Microsoft Corporation, are now seeking ways to appease major corporate customers. Plans range from simple volume discounts to more comprehensive programs known as site licensing, which gives the corporate customer the right, for a specified fee, to copy and distribute copies of a program within the company.