The Evolution of Software Pricing: a Framework for Box Licenses to Application Service Provider Models

Abstract

Software is the intellectual capital output of the codified knowledge of a programming team. The development cost is high, but the variable cost of sale is substantially lower (negligible) than for hard goods. Unfortunately, there does not exist a valid or reliable measure to value software. The trend has been to align pricing to the activities that buyers realize value from. However, new architectures change the nature of where value is realized and how service becomes part of the equation. There does not exist a perfect generic pricing model. Vendors must understand the value they provide to their customers and create a price structure that aligns pricing with value realization, but more importantly facilitates their business objectives of the product (and service).

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Cite this paper

@inproceedings{Bontis2002TheEO, title={The Evolution of Software Pricing: a Framework for Box Licenses to Application Service Provider Models}, author={Dr . Nick Bontis and Honsan Chung}, year={2002} }