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Wednesday, March 12, 2008

The user reaches the point where fee is paid to those which have value truly

The software fee model in IT industry is changing largely. With spread of the subscription the user probably reaches the point where the product is appraised appropriately. American edition

The fact that it comes next in the territory of the business model will be the subscription, 10 years, both of the IT vendor and the customer large becomes popular probably will be. Simply, without either a little troublesome aspect it is not.

A little it will try looking back at history. The business model past 10 years, fluctuated in all fields of the world economy. Internet gave leadership and transparency to the consumer, offered the place where anyone can compete to equality. In the field of IT, it reached the point where the package software receives the challenge from the service and open source.

The roots of the subscription, in order Franklin's age, fixed cost and the variable expense where at that time the publisher is necessary for printing (the printer, the paper, the ink and bookbinding) to hold down to minimum, go back to adopting prepayment system. After that, the telephone and the cable television, Netflix (movie rental of net transmission) to with it kept being succeeded.

Next, the variable expense where high-speed Internet depends on the development of the software/integration was made to decrease, Salesforce.com and the like proved the effectiveness of SaaS and showed. On the other hand, the user paid huge fee in installation, reached the point where more and more dissatisfaction is held in the introduction model of the former software license type that furthermore from the next time it becomes unable to buy from only that vendor, ("shaving and the changing blade", or even "the drug dealer" model you can say). If cost decreases with the subscription, as for the user in order to continue to raise the value of the software in the vendor, it reaches the point where pressure can be applied.

Then, what troublesome aspect? The subscription like the royalty program metallurgy molten commodity of the consumer, probably means and to keep complicating much specializing. Per seat month amount 75 dollar the simple clear fee system which was said keeps being subdivided all needs and because it corresponds to the customer segment. It can give to royalty the proper collateral, as for service level being segmented, it can adopt the system like futures option.

As a merit, assuming, that the subscription about the same as license agreement became complicated, it is to be able to grasp accurately the license compared to maintains transparency, how much pays in something.

It ended the times when the vendor for developing the new customer entertains in golf and the festival. In order to be able to acquire the customer where the model which succeeds from now on, decreasing the business person in charge, directs the allowance amount to product development, pays proper subscription fee more, it is to stress.

Searching the cost and the stomach which do not come to the surface it meets, the negotiation which continues meanderingly does not need anymore. It is Henry Ford second coming. It is the payment uninformed to say the fit amount vis-a-vis high value.

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