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Software Licensing and Pricing

Software is a mature industry with considerable cost pressures. It costs an incredible amount of money to develop, deliver, market, sell and support a software product.

Software vendors are struggling with dwindling margins, increased competition, and bad economy that keep pushing them to sell at lower prices. For many, the only way to overcome that is to make big shifts in licensing and pricing schemes.

Traditionally, most software vendors use a perpetual licensing model, with a license fee for each module or component of the software, or a license fee for each user of the software.

When a customer acquires a perpetual license he assumes responsibility for managing the software. There is a high upfront cost associated with the purchase of the license, as well as the burden of implementation and ongoing maintenance. ROI is often delayed considerably, and, due to the rapid pace of technological change, expensive software solutions can......

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Approximate Word Count: 3082
Approximate Pages: 13 (250 words per double-spaced page)

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