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Saturday, October 23, 2004

Software And Payment Mechanisms

( Via Techdirt ) The push towards "service-based" pricing for software looked like a clearly welcome development over the last few years, but that doesn't mean everyone's happy with it. Macrovision's recent study says, most companies still prefer traditional "perpetual" licensing, even though, other news articles focus more on the trend suggesting that most will move to service fees over licensing by 2006. Interestingly enterprises look favourably to paying subscription fees when the software is web-based -- and it feels more like a service. You know it's being updated and the company you're paying is actually doing something related to the software you're using. Where it seems to make people uncomfortable is when these "service fees" are really just "forced upgrade fees." This article points out that companies are increasingly tired of the forced enterprise software upgrade path, which only helps the enterprise software company. Enterprises are reaching a point where they're simply not going to accept it any more, and software vendors need to realize this -- or someone else is going to come along who does things better.
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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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