Welcome!

Adobe Flex Authors: Matthew Lobas, PR.com Newswire, Shelly Palmer, Kevin Benedict

Related Topics: Adobe Flex, Java IoT

Adobe Flex: Blog Feed Post

Software Pricing Trends

Pricing software was a science for many years

Pricing software can be more difficult than creating it.  There are companies that do just this – pricing software for others. Setting a low price brings more customers but requires more investment into customers support. Higher prices simplify customer support, but require more investment into sales and marketing.

Pricing software was a science for many years. The ability to have a cake and eat it too makes software (and music and videos) different compared to tangible products. A finished program (a song, a video) can be sold many times, but the rightsholder still has it, and can keep selling the same thing over and over again. Isn’t it amazing?

Many years ago Apple started selling downloadable songs for 99¢ a piece. It’s a lot easier to shell out 99¢ for just one song than $15 for the entire CD. Besides, the inventory is limitless – you don’t depend any longer on the stock at the local music store.  In no time a consumer spends the same $15 or more and production costs are close to zero.

But songs don’t need technical support.  You won’t blame a musician for playing a wrong note. This is not the case with the software though. You want that bug to be fixed AFTER the sale is made.

During the last 15 years, trillions of lines of open source and free software have been written. Most of these lines are a dead code that nobody uses. This code became useless because of the lack of funds for maintenance and customer support. And there is no one to blame for this. Software developers also need to buy food, houses, gasoline… They can’t work for free.

The vendors of a popular open source software make a living by charging an arm and a leg for training and customization of their products. They charge for service.

Last week one person called me asking my opinion about a certain software for advertising and managing meeting, conferences, and trainings. I’ve been using the services of this vendor for several years.  When I told the guy that they charge a fee for each person registering for to the event, he said, “Excellent! I was afraid they’d do it for free! If they charge money, they can provide support.”  Think about it – he didn’t want free service.

Then Apple did something else that changed people’s expectations about the cost of the software. There are thousands of applications on sale at iTunes store. Most of the products cost just a couple of bucks. Most of the products are useless. But it’s so easy to pay two dollars even for something that you won’t need. The last time I did it was yesterday. I had a program for iPad that had a certain issue. A quick search revealed that there is another great program of this kind, and people gave it great ratings. One minute later I paid $2.99…just to find out two minutes later that it suffers the same problem that the original one.  So what? It’s only $2.99. I won’t even bother researching about their return policy.

I’m sure many people easily get parted with their dollars getting cheap software they’ll never use. And by doing so, they set a new pattern for pricing software.  The vendors will be slowly forced to lower their prices way below what was considered reasonable just a couple of years ago.  And this will affect not only the consumer’s market, but the enterprise software too. It’ll be more and more difficult to sell $100K+ software to managers who (after business hours) live in a world where software costs $2.99.  OK, $9.99. Alright, $19.99.

Don’t you think that the quality of the software must go down the drain to be able to make it to the shelves of the one-dollar stores? Am I making things up?

Read the original blog entry...

More Stories By Yakov Fain

Yakov Fain is a Java Champion and a co-founder of the IT consultancy Farata Systems and the product company SuranceBay. He wrote a thousand blogs (http://yakovfain.com) and several books about software development. Yakov authored and co-authored such books as "Angular 2 Development with TypeScript", "Java 24-Hour Trainer", and "Enterprise Web Development". His Twitter tag is @yfain

IoT & Smart Cities Stories
Whenever a new technology hits the high points of hype, everyone starts talking about it like it will solve all their business problems. Blockchain is one of those technologies. According to Gartner's latest report on the hype cycle of emerging technologies, blockchain has just passed the peak of their hype cycle curve. If you read the news articles about it, one would think it has taken over the technology world. No disruptive technology is without its challenges and potential impediments t...
Nicolas Fierro is CEO of MIMIR Blockchain Solutions. He is a programmer, technologist, and operations dev who has worked with Ethereum and blockchain since 2014. His knowledge in blockchain dates to when he performed dev ops services to the Ethereum Foundation as one the privileged few developers to work with the original core team in Switzerland.
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
If a machine can invent, does this mean the end of the patent system as we know it? The patent system, both in the US and Europe, allows companies to protect their inventions and helps foster innovation. However, Artificial Intelligence (AI) could be set to disrupt the patent system as we know it. This talk will examine how AI may change the patent landscape in the years to come. Furthermore, ways in which companies can best protect their AI related inventions will be examined from both a US and...
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Bill Schmarzo, Tech Chair of "Big Data | Analytics" of upcoming CloudEXPO | DXWorldEXPO New York (November 12-13, 2018, New York City) today announced the outline and schedule of the track. "The track has been designed in experience/degree order," said Schmarzo. "So, that folks who attend the entire track can leave the conference with some of the skills necessary to get their work done when they get back to their offices. It actually ties back to some work that I'm doing at the University of San...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Dynatrace is an application performance management software company with products for the information technology departments and digital business owners of medium and large businesses. Building the Future of Monitoring with Artificial Intelligence. Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more busine...