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End of Software, The: Finding Security, Flexibility, and Profit in the On Demand Future by Timothy Chou

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Traditional Software Business Model

The traditional software business model centers on software license fees. In general, this means customers must purchase a license to use the software either in perpetuity or for a fixed period of time. But remember that, although writing software is a highly skilled task, it is only a small part of the overall task of delivering software. Developing production-level software requires unit testing, integration testing, alpha customers, beta customers, and so on. As a result, software companies license their software but also charge for technical support, updates, and upgrade rights.

A software maintenance agreement outlines what types of software problems are given what priority of resolution, how long resolutions ...

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