Mark Pearl

I found this article extremely useful. It gives the histroy on pricing software and why old models are no longer working.

For instance, you used to be able to sell a license and then get yearly software maintenance fees. This is no longer proving to be the best way or even a sustainable approach. The article explores aternative approaches, highlights the challenges of each approach and points out some examples of implementation.

Alternative Approaches

  • Subscription licensing
  • SaaS model
  • Protect and sell your data

General Points

  • Real money no longer lies in software
  • Software is an asset, not necessarily money
  • Try control the entire experience where possible (Apple)
  • Money lies in leveraging the services around software
  • Strategies you can explore for alternative revenue models

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