Pricing Strategies of Software Vendors

Abstract

Pricing strategies of vendors in the software industry have so far not been discussed compre- hensively. This is surprising as the characteristics of the software industry differ particularly from other industries. This paper provides an overview of pricing models for software. We will take into account the characteristics of software as a product as well as the software industry’s general conditions. Furthermore, we refer to recent software delivery models, such as software as a service. The results are based on literature research and empirical studies.