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
The challenges of aggregating data from consumer-oriented devices, such as wearable technologies and smart thermostats, are fairly well-understood. However, there are a new set of challenges for IoT devices that generate megabytes or gigabytes of data per second. Certainly, the infrastructure will have to change, as those volumes of data will likely overwhelm the available bandwidth for aggregating the data into a central repository. Ochandarena discusses a whole new way to think about your next...
DXWorldEXPO LLC announced today that Big Data Federation to Exhibit at the 22nd International CloudEXPO, colocated with DevOpsSUMMIT and DXWorldEXPO, November 12-13, 2018 in New York City. Big Data Federation, Inc. develops and applies artificial intelligence to predict financial and economic events that matter. The company uncovers patterns and precise drivers of performance and outcomes with the aid of machine-learning algorithms, big data, and fundamental analysis. Their products are deployed...
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...
All in Mobile is a place where we continually maximize their impact by fostering understanding, empathy, insights, creativity and joy. They believe that a truly useful and desirable mobile app doesn't need the brightest idea or the most advanced technology. A great product begins with understanding people. It's easy to think that customers will love your app, but can you justify it? They make sure your final app is something that users truly want and need. The only way to do this is by ...
CloudEXPO | DevOpsSUMMIT | DXWorldEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cell networks have the advantage of long-range communications, reaching an estimated 90% of the world. But cell networks such as 2G, 3G and LTE consume lots of power and were designed for connecting people. They are not optimized for low- or battery-powered devices or for IoT applications with infrequently transmitted data. Cell IoT modules that support narrow-band IoT and 4G cell networks will enable cell connectivity, device management, and app enablement for low-power wide-area network IoT. B...
The hierarchical architecture that distributes "compute" within the network specially at the edge can enable new services by harnessing emerging technologies. But Edge-Compute comes at increased cost that needs to be managed and potentially augmented by creative architecture solutions as there will always a catching-up with the capacity demands. Processing power in smartphones has enhanced YoY and there is increasingly spare compute capacity that can be potentially pooled. Uber has successfully ...
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 22nd International Cloud Expo, which will take place on June 5–7, 2018, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buye...
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...