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