R0ML's Ratio: Avoid the Bozo Trap in Enterprise Software Licensing

This article introduces a clever methodology for evaluating volume purchases: R0ML's Ratio. Using the example of buying thousands of clown noses, it explains how to calculate the ratio: divide the total purchase price by the full retail price of all units. A ratio under 1 indicates a good deal; above 1 means you've been had. This is especially crucial for software and SaaS licensing, where accurately estimating usage is key to avoiding losses from underutilization. The author suggests empowering employees with corporate cards for individual software purchases as a safer alternative.