Traditional Software Business Model

The traditional software business model centers on software license fees. In general, this means customers must purchase a license to use the software either in perpetuity or for a fixed period of time. But remember that, although writing software is a highly skilled task, it is only a small part of the overall task of delivering software. Developing production-level software requires unit testing, integration testing, alpha customers, beta customers, and so on. As a result, software companies license their software but also charge for technical support, updates, and upgrade rights.

A software maintenance agreement outlines what types of software problems are given what priority of resolution, how long resolutions ...

Get End of Software, The: Finding Security, Flexibility, and Profit in the On Demand Future now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.