CSC 406
Intro to Software Marketing and Licensing Issues
Fundamental Software Types
There are a variety of ways to make a buck in the
software industry.
From the marketing point of view, this is one way to categorize
software products.
- Shrink-wrap
The vendor sells the software as a commodity; requires large capital
investment, distribution channels and tech support.
Highly profitable if successful.
Problems:
Large variety of target machines
Huge support costs for both vendor and user
- OEM (Original Equipment Manufacturer)
Vendor A licenses the software to Vendor B, who resells it usually as
part of a larger system.
Advantages:
Vendor A can make a buck without the large capital investment.
Vendor B can out-source specialized software development.
- Embedded
Conceptually like OEM software; Vendor B produces an artifact that
contains the software (e.g. Microwave ovens)
- Custom
A vendor writes custom software; typically the customer owns the product.
Major problems:
The cliche, you can't make money writing custom software
is usually true.
Requirements conflicts between the vendor and customer.
Schedule/delivery conflicts between the vendor and customer.
- In-house
Custom software development is done by company employees/contractors.
Advantages:
Total control of the product lifecycle, costs, ...
- Service
The vendor provides the software; the user pays to use it.
Extremely common until the 1980s, returned with WWW services;
current interest in Software-as-a-Service (e.g. Salesforce.com,
Intuit's online taxes).
Requires large capital investment.
Advantages:
no user-level installation and support.
constant revenue stream for vendor.
Software Licensing
If you are a software professional, understand licensing issues.
If you plan to market software, hire a licensing professional!
If you plan to make $, check out the BSA site.
Basic licensing types:
- License to install and use
The standard vanilla shrink-wrap license; even these vary widely.
- License to resell
Resell licenses can be a one-time payment or royalty-based.
- License to distribute
There are an infinite variety of options.
- License to own
Product ownership is transferred. Uncommon except for custom
software.
- Shareware/freeware
There are an infinite variety of licensing options.
See the
GNU licensing site for an excellent discussion.
See also Creative Commons for ways
to give away and get free software.
Trial Software Distribution and Licensing
For the most part, distribution issues are obvious. (e.g. package shrink-wrap
software in a box and shrink-wrap it)
But most software buyers want to try software. What are some methods for
handling that problem?
- Trust
Give the potential buyers the software and trust them.
- Restrict saves
Buyers don't like it.
- Restrict seats
Only works for multiple seat licenses.
- Set expiration date
Easy to work around for dishonest user.
- Disable features
Works especially well in games.
Software Patents
Patent Farming
Contributed by Professor Dan Stearns
Edited by David Janzen
Last updated 5/21/08