Software Execs Realizing Problems With Traditional Pricing Models

from the well,-it's-about-time dept

Lots of people have been saying this for a while, but traditional software pricing is dreadful, as it gives incentives for companies to ship buggy software with big upfront fees and sign expensive “maintenance” or “service” contracts, and then extract more money for each upgrade. It appears, though, that an increasing number of software executives are realizing how this has damaged the reputation of many enterprise software offerings, and are trying to change that by taking a subscription fee approach. This encourages the firms to make sure that the product actually works, and that they have a strong ongoing relationship with the customer. As this model continues to catch on, those still supporting the old model are going to find it increasingly difficult to keep it up.

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Software Execs Realizing Problems With Traditional Pricing Models”

Subscribe: RSS Leave a comment
Norman E. Spaulding says:

Software Subscription

Just as long as the software in question does not cease to operate if the user stops making subscription payments.

I’m almost certain this is what they really want; no pay, no play. I believe this is their primary reason for going to subscriptions.

I don’t mean to say that one purchases a piece of subscription software, paying only the first subscription installment of, say, $25, and then cancels and expects it to continue working.

But as nearly always, I’m suspicious of any new direction in payment methods.


thecaptain says:

Re: Software Subscription

You are right to be suspicious.

The subscription model has NOTHING at all to do with improving the quality of software OR improving the reputation of the industry.

Its about a consistant, constant revenue flow PERIOD.

I find it sickening that many businesses are buying into essentially what is a drug dealer’s business plan:

1) Get them addicted (ie: make the buy in low or free)
2) Lock em in (ie: they can ONLY buy from you, and if you don’t, well you’re screwed)
3) Make em pay all the time (you’ve got your subscription model right there)

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »

Follow Techdirt

Techdirt Daily Newsletter

Techdirt Deals
Techdirt Insider Discord
The latest chatter on the Techdirt Insider Discord channel...