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Wednesday, October 20, 2004The Paradox The software industry is rapidly moving to subscription-based billing, but corporate customers have not warmed up to the model yet, according to a new study. A survey of nearly 400 software companies and 100 enterprise executives responsible for software purchases found that more than half of software companies expect to offer subscription-based software licensing within two years--a practice used by only one-third of those companies now.However, the study found that corporate customers aren't buying into the change yet. Sixty-four percent of software buyers prefer buying a license upfront over a subscription model, the survey showed. The survey, released Monday, was sponsored by Macrovision, which sells software for electronically tracking software licenses; the Software & Information Industry Association; and the Centralized Electronic Licensing User Group. The results of the research were released at the SoftSummit industry conference on software purchasing in Santa Clara, Calif.The discrepancy between buyers and sellers on the question of subscription pricing could be a matter of awareness, the study's authors said. About 67 percent of software today is purchased through an upfront license with ongoing maintenance fees.
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