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Great article on the software business model

"Let's stop wasting $78 Billion a year"
http://www.cio.com/archive/101501/wasting_content.html?printversion=yes

Still, whether it's closed-source (one-time purchase or subscription-based) or open-source, building software is hard work, so I don't think we'll ever come up with a really satisfying solution.

FF.

Frederic Faure
Sunday, October 21, 2001

Thanks for the link. Excellent article.

In the article "Good Software Takes Ten Years" Joel Spolsky explains why a subscription revenue model is better than a perpetual license agreement. In my company, we've been experimenting with a subscription model with limited success. Even though, from a time-value of money perspective, it's much more economical for our customers to subscribe to our software, most still prefer the perpetual license.

The SAS subscription model (linked to in the "Good Software" article) is probably the best I've heard of. But except for this one article, I haven't found anything else that explains how SAS does it. You can find the SAS article at:
http://www.fastcompany.com/online/21/sanity.html

Does anyone have further insights into the SAS subscription model or other successful subscription models? (BTW, we do not compete with SAS.)

Michael Bean
Tuesday, October 23, 2001

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