Comments on: Rethinking Software Pricing in a Service-Oriented World http://www.zapthink.com/2003/11/06/rethinking-software-pricing-in-a-service-oriented-world/ Sharpening Your Vision of the Future of IT Thu, 09 Feb 2012 23:54:28 -0500 hourly 1 http://wordpress.org/?v=3.2.1 By: Nathan http://www.zapthink.com/2003/11/06/rethinking-software-pricing-in-a-service-oriented-world/comment-page-1/#comment-242 Nathan Fri, 15 Jan 2010 21:36:44 +0000 http://test.zapthink.com/?p=ZAPFLASH-11062003#comment-242 "Another approach widely considered by Service providers is charging for Services on a fee-for-use or per-transaction model... In many ways, this is a “pay-as-you-go” approach, and can be quite attractive for infrequently used Services, or for companies that are simply not sure about how they will use certain Services." This sort of model is most useful, I think, for small companies. Often, the large licensing fees associated with top of the line enterprise software can pose an artificial barrier to entry for industries requiring their use. A small company can't afford such software, so it is impossible for them to operate as efficiently as a larger company. Because they're less efficient, they can't compete. With per usage, or even subscription based software, this barrier is diminished for small businesses. This is, of course, a great thing for consumers! “Another approach widely considered by Service providers is charging for Services on a fee-for-use or per-transaction model… In many ways, this is a “pay-as-you-go” approach, and can be quite attractive for infrequently used Services, or for companies that are simply not sure about how they will use certain Services.”

This sort of model is most useful, I think, for small companies. Often, the large licensing fees associated with top of the line enterprise software can pose an artificial barrier to entry for industries requiring their use. A small company can’t afford such software, so it is impossible for them to operate as efficiently as a larger company. Because they’re less efficient, they can’t compete. With per usage, or even subscription based software, this barrier is diminished for small businesses. This is, of course, a great thing for consumers!

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