US007383202B2

(12) United States Patent

(10) Patent N0.:

(45) Date of Patent:

Archibald et al.

(54)

SYSTEM AND METHOD FOR AUTOMATIC

PRICING OF REMOTELY HOSTED
APPLICATIONS

(56)

(US); Steven Wayne Earl, Lake

OsWego, OR (US); Thomas E.

References Cited

5,410,598 A *

4/1995

Shear ........................ .. 705/53

5,949,975 A *
6,230,204 B1 *

9/1999
5/2001

Batty et al. ............... .. 709/213

Fleming, III .............. .. 709/229

6,816,882 B1 *

McEvilly, Atlanta, GA (US); Deepak

Gupta, Pleasanton, CA (US)

6,904,449 B1 *
7,222,084 B2 *

(73) Assignee: Oracle International Corporation,

6/2005
5/2007

709/203

Quinones ........ ..
709/203
Archibald et al. .......... .. 705/10

FOREIGN PATENT DOCUMENTS

Subject to any disclaimer, the term of this

patent is extended or adjusted under 35

EP

1128309 A2

U.S.C. 154(b) by 0 days.

2/2001

(Continued)

This patent is subject to a terminal dis

claimer.

OTHER PUBLICATIONS

WWW.mysap.c0m.*

(21) Appl. N0.: 11/736,856

(22) Filed:

11/2004 Conner et al.

(Continued)

Redwood Shores, CA (US)

Notice:

*Jun. 3, 2008

U.S. PATENT DOCUMENTS

(75) Inventors: Chad Archibald, Walnut Creek, CA

(*)

US 7,383,202 B2

(Continued)

Apr. 18, 2007

Primary Examinerilohn W. Hayes

Assistant ExamineriFreda A. Nelson

(65)

Prior Publication Data

US 2007/0192131 A1

(74) Attorney, Agent, or FirmiToWnsend and Townsend

and CreW LLP

Aug. 16, 2007

(57)

Related US. Application Data

(63)

Continuation of application No. 10/242,227, ?led on

Sep. 11, 2002, noW Pat. No. 7,222,084.

(60) Provisional application No. 60/322,598, ?led on Sep.

11, 2001.

ABSTRACT

Automatic pricing of remotely hosted applications permits

users to enter customer data and ?exibly prices various

product o?cerings, product lines, and applications. An initial

build of a computer system, modi?cations to an existing

computer system con?guration, extended services, and

(51)

G06Q 99/00

(52)
(58)

enhancements are incorporated. Errors are checked for and

can be corrected. Using the invention, a sales team can

Int. Cl.

(2006.01)

US. Cl. .......................... ..

705/10; 705/1; 709/203;

quickly and ef?ciently price products and services at the

709/226

inception of a business relationship, and can easily modify

Field of Classi?cation Search ................ ..

705/35,

prices during the business relationship.

705/53, 1, 10; 709/203, 229, 226

See application ?le for complete search history.

30 Claims, 16 Drawing Sheets

CHOOSE PRODUCT OFFERING

310

PRICE BASE PRODUCT

OFFERING

320

PRICE EXTENDED SERVICES

330

300

CALCULATE TOTAL PRICE

CHECK FOR PRICING ERRORS (/\ 350

PRESENT PRICING SUMMARY (/\ 360

US 7,383,202 B2
Page 2
US. PATENT DOCUMENTS

Edwards, Morris; The Clamor for Hosted Applications; Jan. 2000,

Communication News; pp. 94-95.*

2003/0018551 A1*

1/2003

Hanson et al. .............. .. 705/35

FOREIGN PATENT DOCUMENTS

EP
EP

1128309 A2 *
1128309 A2 *

2/2001
8/2001

OTHER PUBLICATIONS

Hicks, Matt; Great ASP-irations; Sep. 6, 1999; PC Weel, p. 67, 5

pgs~*
SAP and eOnline Forge Application Hosting Alliance; Business
Wire; Aug. 24, 1999; 2006 Business Wire.
AISP ebaseOne Selects NARUS IBI Solutions to Enable Usage

Based Billingfor Hosted Applications;PR Newswire; May 19, 2000;

2006 The Gale Group.

ness Wire, p. 1149*

Edwards, Morris; The Clamor for Hosted Applications; Communi

cations News; Jan. 2000, p. 94, v37, n1; ISSN: 0010-3632; 2006
The Gale Group.
www.mysap.com, May 5, 2001.
Portal Announces Multiple Customer Wins and Relationships in
ASP and Internet Business Service Market; Business Wire; Apr. 24,
2000, p. 1149; 2006 The Gale Group.

Edwards, Morris, The clamor for hosted applications, Jan. 2000,

Communications News, v37, n1, p. 94.*

* cited by examiner

SAP and eOnline Forge Application Hosting Alliance, Aug. 24,

1999, Business Wire.*
AISP ebaseOne selects NARUS IBI Solutions to Enable Usage

Based Billing for Hosted Applications, May 19, 2000*

Portal Announces Multiple Customer Wins and Relationships in
ASP and Internet Business Service Market, Apr. 24, 2000, Busi

U.S. Patent

Jun. 3, 2008

Sheet 1 0f 16

US 7,383,202 B2

100px
EXTERNAL
CONNECTION

INTERNAL
CONNECTION

110

120

130

COMPUTING
DEVICE

150

140

COMPUTING
DEVICE

COMPUTING
DEVICE

150

150

FIG. 1

U.S. Patent

Jun. 3, 2008

Sheet 2 0f 16

US 7,383,202 B2

m
moSmQ
n
"

u
n

m
OWN8N3w8m

m.VEQsmwEozI05<om2l

m
m

_
m
m
m

HmOL><v.D_n6/w_5wa .

m
n
3
O

m
08
M
EN3m

U.S. Patent

Jun. 3, 2008

Sheet 3 0f 16

US 7,383,202 B2

CHOOSE RRoDucT OFFERING

310

PRICE BASE PRODUCT

OFFERING

320

PRICE EXTENDED SERVICES

330

300

I
CALCULATE TOTAL PRICE

\/\ 340

CHECK FOR PRICING ERRORS }\f 350

I
PRESENT PRICING SUMMARYILT 860

FIG. 3

U.S. Patent

Jun. 3, 2008

Sheet 5 0f 16

US 7,383,202 B2

FROM 460

I
I

I
I
I
I
I
I
I

520

I
I

/MIGRATING

I
I

NO i

ENHANCEMENTS?//

'

I
I
I
I
I

YESiVWMJJF

I
I
I
I

GENERATE PAGES

I
I

I
530

AGAIN

l
l
I

I
I
I
I
I
I
I
I
l

540

MT ENTER THE QUANTITY OF ENHANCEMENTS FOR

EACH TYPE AND PRODUCT LINE

I
I

1
I
i

542

|
|
l

MULTIPLY THE QUANTITY OF ENHANCEMENTs FOR

\f

I
I

EACH TYPE AND PRODUCT LINE BY THE

M:

ENHANCEMENT WEIGHTING

I
I
I

'

I
w STORE WEIGHTING CALCULATION RESULTS AND
SUM

i 544

I
I
I
I

I
I
I

550

I
I
I
I
I

ENHANCEMENT

I
I

POINTS > 400?

I
I
I
I
I

I
I

STORE A SCALING PERCENTAGE FOR

I
I
l

APPLICATION TOWARDS THE TOTAL

HOSTING FEES

I
I
I
I
I
I

I
I
l

CONTINUE TO

I
I

|
l

I
I

570

320

FIG. 5

65

U.S. Patent

Jun. 3, 2008

FROM 310

Sheet 6 0f 16

US 7,383,202 B2

TO 450

{I
I
I 605

FILL OUT EACH

APPLICATION

1
STORE MONTHLY USER

I
I
I
I
I
I

PRODUCT LINE
WORKSHEET

DOLLAR AMOUNT
I
ENTER THE QUANTITY OF
IMPLEMENTATION PACKS BY
NO

HOSTED
PPLICATIONS SHOW

615

ENTER OPT'ONAL

610

ENTER THE START DATE FOR

SERV'CE HOURS

ANY SPECIALTY

APPLICATIONS AND STORE

'

I
I

PRICE
620

I g
CHOOSE STAND-ALONE OR
ADD-ON

I $625

ADMINISTRATION SERVICES \P I
ARE AUTO POPULATED
655:

VALIDATE THE GIVEN

NUMBER OF CPUS BY
PRODUCT LINE AND

I
J\ I 2
660I 3 O

APPLICATION
VALIDATE THE PRICE PER

.1

PRICE

630

USER

If
665

SELECT THE GREATER OF

E
1
I
.

THE PRODUCT LINE MINIMUM w I

ENTER THE QUANTITY

AND THEJSESTDOLLAR

E
I

OF USERS BY TYPE AND

TIME PERIOD

I
CALCULATE AND STORE
PRODUCT LINE MINIMUM

552 i

VALIDATE THAT THE SYSTEM

I
I
I
I

SYSTEM ADMINISTRATION If 5

I
I
I

T CALCULATE AND STORE

I
I

640;
I
I
5

TIME PERIOD
645',
v__I_d*
I
I

LL SELECTE

I
I

I
\p I

ADD ON THE SPECIALTY

8635

APPLICATION PRICING

670 I
I
I

\/\

675 I

CONVERT USER

ADD ON OPTIONAL SERVICES

INFORMATION INTO

PRIQNG

I
POWER USER
I
I
EQUIVALENTS
I F|G_ 6
g_____

L
STORE THE APPLICATION
PRODUCT LINE PRICE

12380:
I
I
685':

U.S. Patent

Jun. 3, 2008

Sheet 7 0f 16

US 7,383,202 B2

FROM 645

ENTER THE QUANTITY

OF UPGRADE PACKS BY
TIME PERIOD

710

II.7P

OD._

RFRIP

ETU_LNDRBS.YTMEHPLSWEMQMPIQA"QUWEBUNSmMPWHD_UEYSI

ANFNOP"NNDCS EEFAONA_KVYI VABE_HIA_PA

TBTTIBE_

RCC
RTSBTl_

ANA_EUSTRO TTMHMmL_BWNAMW_DWYNEWETll?Nw

7%
m
n
m
n

O_

NAo0NIN_ Dm
DY%D
YS

TSP.DBAlI

l_

m
_

TO 655

FIG. 7

U.S. Patent

Jun. 3, 2008

Sheet 8 0f 16

US 7,383,202 B2

FROM 320

NAVIGATE To THE EXTENDED SERVICES

\/\
810

II

SELECT EXTENDED SERVICES

V
'

820

ENTER THE SERVICE ROLL-OUT DATE

\/\
830

ENTER THE QUANTITY OF EXTENDED SERVECES Um

CALCULATE THE TOTALI EXTENDED SERVICES
FEES
I

STORE THE TOTAL EXTENDED SERVICES FEES M

v

CALCULATE AND STORE THE SYSTEM

ADMINSTRATION SERVICE HOURS AS A
PERCENTAGE OF EXTENDED SERVICE FEES
I

VALIDATE THE GIVEN SYSTEM ADMINSTRATION

SERVICE HOURS

FIG. 8

;\/\

U.S. Patent

Jun. 3, 2008

Sheet 10 0f 16

US 7,383,202 B2

FROM 340

NAVIGATE TO ERRORS

WORKSHEET

/\/

1010

I
vIEw THE ERROR OOuNT

% O20

I
NO
ERROR COUNT > O?

1030

NAVIGATE TO
THE HOSTING

SURVEY

SECTION AND @040

PRODUCT LINE

IN ERRORS

WORKSHEET

=
I

I
I

CHECK FOR ERRORS

@1050

II

RETURN TO 310

CONTINUE TO 360

U.S. Patent

Jun. 3, 2008

Sheet 11 0f 16

US 7,383,202 B2

FROM 1040

N0

/ SELF-SERVICE USERS

: <\
5
i

g <,/
:

:
E

FACTORED IN?
YES
\\\

\7\

E TLY?

;
i
NO

\\

NE CORR C
YES

/>

YES

1140

ADD-ON vs. STAND-ALONE

CORRECT?

YES

NO

SCENARIO?

E
No

l
:

i
11 6 0

YES

SELF-SERVICE
CONCURRENCY CORRECT?
YES

i:

NO

5
5
i

NO

1170

5
iI

i
1

1150

i
./\C/1050

QUALIFIED FOR ADD-ON

i
i
1

i
:

i
i

TO

{
;

No

__~

1 130

1
E

1 120

IMPLEMENTATION PACKS
DO

3
v

UPGRADE PACKS CORRECT?

11 80

YES

POTENTIAL DOUBLE

COUNT CORRECT?

:L ______________________________________ n

FIG- 1 1

EI
NO

;'

;
;

1190

T671060

U.S. Patent

Jun. 3, 2008

34%
mtEr1eaiSlv.-QcEv12

iii
u. .

AHO8vlUEagni-cUF

Sheet 13 0f 16

US 7,383,202 B2

U.S. Patent

Jun. 3, 2008

Sheet 15 0f 16

US 7,383,202 B2

Exhibit A - Enhancement Assessment 8= Pricin

Customer:

Enter QTY
Level 1
Translate value

query, no join

Crystal report
nVision layoutireport
New ?elds
menu

new table (use standard new table naming convention)

new panelipage

new panel groupfcomponent

new

to new

SGR, AE, or Cobol that executes SQL against new table

existing query

existing Ctysta! report

existing nvision reportilayout
label change (no table alter)
existing menu

able alter (non-key fields)

Index
delivered application messaging
new field to

PeopieCode on existing tablel'page

AE or Cobol

Percent of Month

Hostin Fees:

Refer to the Master Hosting Agreement for Enhancement terms and de?nitions
Any fees and costs in connection wth suppurt, maintenance or upgrades of Enhancements are the sole responsibility at the Customer.

FIG. 15

US 7,383,202 B2
1

SYSTEM AND METHOD FOR AUTOMATIC

PRICING OF REMOTELY HOSTED
APPLICATIONS

computer system con?guration, extended services, and

enhancements are incorporated.

The system for automatically pricing remotely hosted

applications includes at least one computing device, a net
work for communicating from external connections to the

CROSS-REFERENCE TO RELATED
APPLICATIONS

computing device(s), pricing models, and a pricing calcu

lator which runs on the computing device to determine

prices based on the pricing models.

Using the invention, a sales team can quickly and e?i
ciently price products and services at the inception of a

This application is a continuation of US. patent applica

tion Ser. No. 10/242,227, ?led on Sep. 11, 2002, which
claims the bene?t of US. Provisional Application No.
60/322,598, ?led on Sep. 11, 2001. The subject matter ofthe

business relationship, and can easily modify prices during

the business relationship.

related applications are hereby incorporated by reference.

BACKGROUND OF THE INVENTION

BRIEF DESCRIPTION OF THE DRAWINGS

1. Technical Field
The present invention relates generally to pricing com
puter services and more particularly to pricing remote host

for use by an ASP for automatically pricing, and remotely

FIG. 1 illustrates a computer system and network suitable

hosting, applications in accordance with the invention;

ing of applications by an Application Service Provider

20

(ASP).

automatically pricing remotely hosted applications in accor

2. Discussion of Prior Art

dance with the invention;

Business organizations commonly establish computer

centers for hosting software applications such as corporate
e-mail systems and human resources systems. The increas

ing complexity of designing, operating, and maintaining

FIG. 4 is a ?owchart of steps for choosing a product

o?fering in step 310 of FIG. 3 in accordance with an
25

to host the applications, has increased personnel costs and

often delayed the rollout of new software applications and

tions for customers wanting to be relieved of hosting appli

cations themselves. ASPs typically set up large computer
systems, install software applications on the systems,

30

35

employ personnel to administer the systems and applica

ASPs have various ways of pricing their services. Some

ASPs charge for use of a computer system separately from
charges for use of a software application. Other ASPs charge
by user accesses to computer systems and software appli

cations. ASPs also charge costs for licensing software appli

cations. Conventional pricing methodologies are typically
carried out manually and slowly, which hinders sales by an

FIG. 9 is a ?owchart of steps for calculating a total price

in step 340 of FIG. 3 in accordance with an embodiment of
40

the invention;
FIG. 10 is a ?owchart of steps in checking for errors in
pricing in step 350 of FIG. 3 in accordance with an embodi
ment of the invention;
FIG. 11 is a ?owchart of steps for checking for speci?c

45

errors in step 1050 of FIG. 10 in accordance with an

embodiment of the invention;

FIG. 12 is a ?owchart of steps for presenting a pricing
summary in step 360 of FIG. 3 in accordance with an

ASP. Therefore, what is needed is an automated yet ?exible

method for automatically pricing remotely hosted applica

FIG. 8 is a ?owchart of steps for pricing extended services

in step 330 of FIG. 3 in accordance with an embodiment of

the invention;

ers. The customers remaining concerns are its requirements

for software applications and the terms of their Service

in accordance with an embodiment of the invention;

FIG. 6 is a ?owchart of steps for pricing a base product
o?fering in step 320 of FIG. 3 in accordance with an

embodiment of the invention;

FIG. 7 is a ?owchart of steps for entering optional
quantities in step 650 of FIG. 6 for pricing a base product
o?fering in accordance with an embodiment of the invention;

tions, and, through networks, service remote access custom

Level Agreement (SLA) with the ASP.

embodiment of the invention;

FIG. 5 is a ?owchart of steps for calculating enhance
ments in step 465 of FIG. 4 for choosing a product o?fering

software applications, and administering computer systems

computer systems into production environments.
Application Service Providers (ASPs), through central
iZation and economics of scale, resolve delays and minimiZe
costs by providing the service of hosting software applica

FIG. 2 is a diagram of a computing device of FIG. 1;

FIG. 3 is a high-level ?owchart of generaliZed steps for

embodiment of the invention;

50

tions.

FIG. 13 is a screenshot of multiple worksheets of a price

calculator in accordance with an embodiment of the inven

tion;

BRIEF SUMMARY OF THE INVENTION

FIG. 14 is a screenshot of a hosting survey in accordance

with the invention;

The methodology for pricing services of an application
service provider includes choosing a base product offering,

55

pricing the base product offering, pricing extended services,

FIG. 16 is a screenshot of an application product line

worksheet in accordance with an embodiment of the inven
tion.

calculating a total price for all chosen products and services,

checking for errors in pricing, and presenting a summary of

pricing. The uniqueness of the pricing methodology includes

60

the combination of user categories over time periods and

?xed price services that scale, as the customer needs further

DETAILED DESCRIPTION OF THE

INVENTION

expansion of services.
Automatic pricing of remotely hosted applications per
mits users to enter customer data and ?exibly prices various

FIG. 15 is a screenshot of an enhancement worksheet in

accordance with the invention; and

A competitive advantage can be achieved by an ASP sales

65

force through pricing its customer services as soon as

product offerings, product lines, and applications. An initial

possible. This is facilitated by automating pricing methods

build of a computer system, modi?cations to an existing

and accommodating low start-up fees.

US 7,383,202 B2
4

various numbers of, labels and product offerings can be

made available to users without departing from the spirit of

FIG. 1 is an overview of a computer system and network

100 suitable for use by an ASP for automatically pricing and

remotely hosting applications in accordance with the inven

the invention.
In step 320 computing device 150 calculates the base

tion. System 100 includes an external connection 110, an

internal connection 120, a network 130, a local network 140,
and at least one computing device 150. External connection
100 and internal connection 120 are communication paths

product offering pricing. As explained below with reference

to FIG. 6, the user can select options that affect the pricing
of the base product offering. In step 330 the user can select

from an intemet work (e.g., the Internet, internal/external

networks, or computer systems, not shown) to network 130.
Network 130 in turn is coupled through local network 140
to computing devices 150. Network 130 and local network

device 150 calculates the total price for the selected

remotely hosted applications. In step 350, the user and

140 can be any network topology, such as a ring, bus, or star,

pricing. Finally, in step 360, computing device 150 presents

can be a Local Area Network (LAN) or a Wide Area

Network (WAN), and can be landline-based on ?ber or
copper cable, or wireless based on RF or infrared transmis

a pricing summary for the user to review. These generaliZed

steps of method 300 are detailed in FIGS. 4 through 12.
FIG. 4 shows details of FIG. 3 step 310 for choosing a

sions. Computing device(s) 150 can be a desktop or laptop

product offering. In step 405, the user opens a price calcu

lator, which in one embodiment, is a conventional spread

extended services that affect pricing. In step 340, computing

computing device 150 can check for, and correct, errors in

computer, a server, a Personal Digital Assistant (PDA), or a

PDA integrated with a wireless mobile phone. One comput

sheet programmed for the user to select menu choices from

ing device 150 can transfer data via local network 140 to a
second computing device 150 or via network 130 to the

and to enter data into. In other embodiments the price

20

calculator can be a proprietary software program with a

Internet, intemal/extemal networks, or other computer sys

visual display using any graphic programming tool. For

tems.

example the graphic programming tool can include

MicrosoftTM Visual Basic, Motif, OpenWindows, or Java.

A system for automatic pricing according to the invention

can also be embodied in a stand alone computing device 150

or in multiple computing devices 150 coupled to local

The user can select menu choices and enter data in the visual
25

network 140 not connected to a network 130.

In step 410, the user chooses a product offering of which,

FIG. 2 is a diagram of FIG. 1 computing device 150

which, in an exemplary embodiment, includes at least one

in an exemplary embodiment, there are four.

As a ?rst choice the user can take step 415 of selecting the

processor 220, a cache memory 230, a main memory 240, a

network device 250, a display 260, an input device 270, and

a hard disk 280, coupled together via a local bus 210.
Local bus 210 can be a Peripheral Component Intercon
nect (PCI) bus or an Industry Standard Architecture (ISA)
bus. Processor 220 is a suitable Central Processing Unit
(CPU). Cache memory 230 is a volatile memory, which
stores data temporarily and loses any stored data when

product offering identi?ed as OnRamp. OnRamp is a low

30

software, ?nancial applications, and Customer Relationship

Management (CRM) software.
35

As a second choice the user can take step 420 of selecting

the product offering identi?ed as Accelerated, which pro

vides the same basic product lines as OnRamp but, for
convenience, product lines are selected for the user by

computing device 150 (FIG. 1).

40

such as Non-Volatile Random Access Memory (NVRAM),

which will not lose data when power to computing device
150 is shut-off.
Disk 280, which is non-volatile memory for data storage,
is slower, but can store more data, than memory 240.

cost, rapid deployment option for hosting basic product lines

such as Human Resources Management System (HRMS)

power to computing device 150 is shut-off. Memory 240,

sometimes referred to as Random Access Memory (RAM),
is also volatile memory but stores more data for longer
times, and accesses the data more slowly, than cache 230.
Alternatively, memory 240 can be non-volatile memory

display.

45

As a third choice the user can take step 425 of selecting

the product offering identi?ed as Flex, which provides a

?exible selection of product lines and hosting options for
unique business processes. In addition to OnRamp product
lines, Flex can provide applications such as student admin
istration software and supply chain management software.
As a fourth choice the user can take step 430 of selecting

the product offering identi?ed as Concierge, which is

Network device 250 enables data to travel between com

similar to Flex but also provides a high level of customer

puting device 150 and local network 140 (FIG. 1). Display

service, extended management support, and extended appli

cation and product line support.

260 can be a CRT monitor, an LCD screen, or a projection 50

system. Input device 270, which receives data, can be a

keyboard, a keypad, a pointer device, a writing area such as

In an exemplary embodiment, the user can select one of

the four product offerings. However, in future embodiments

an electronic writing tablet, or a touch sensitive screen.

a user could simultaneously select multiple product offer

Other embodiments of computing device 150 can include

multiple processors 220 and components such as soundcards
and multimedia cards for enhanced data transmission and
reception. Typically, a human user of a calculator interacts

ings.
55

checks whether there will be more or fewer than 75 con

with computing device 150 to automatically price remotely

hosted applications for one or more customers (not shown).
FIG. 3 is a high-level ?owchart of generaliZed steps in a

If the calculator user has selected OnRamp step 415 or

Accelerated step 420, then in step 435 computing device 150

current product users for the selected product line(s). If there
60

will be 75 or more concurrent product users, then the method

returns to step 410 and the calculator user must choose

method 300 for automatically pricing remotely hosted appli

another product offering. However, if there will be fewer

cations in accordance with the invention. In step 310, a

calculator user chooses a base product offering. In one

than 75 concurrent product users, then the calculator user

proceeds to step 445.

embodiment as detailed in FIG. 4 the user can choose among

four products, labeled for example OnRamp, Acceler

ated, Flex, and Concierge. In another embodiment (not
shown) a user can choose among two products. Other, and

65

If the calculator user has selected Concierge then in step

440 computing device 150 checks if the customer will spend
at least $50,000 per month. If not, then the method returns
to step 410 and the calculator user must choose another