Chapter 17. Financial Metrics for Software Services
Defining a Software Service
Determining the value added from software services is a little different and presents a different problem from that presented in Chapter 16 for software products. First, it is necessary to define a software service in this context.
A service is something paid for on a renewing basis. The user does not gain perpetual rights—there is an implied annuity. The telephone system is a service. There is a monthly recurring charge plus additional charges for usage. Yahoo! email is a service. The online edition of the New York Times is a service. Software sold on a leased basis or Internet web service/application service provider basis is a service.
High technology services, ...