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Editorial from the November 2006 issue of Managing Automation

Vendors Roll Out New Software Licensing Models(What a Mess!
Cleaning Up Software Pricing)

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Abstract:Manufacturers have for years complained about the increasing complexity and inflexibility of licensing models traditionally used by vendors of enterprise software. Now software as a service (SaaS) and its associated, flexible software rental model are putting pressure on traditional software vendors, forcing them to look at new licensing models. At the same time, new technologies like service-oriented architecture are shaking up the licensing front. As a result, manufacturers are beginning to see a new wave of simpler licensing options.
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Let's say you're in the market for a new car. You find the model you think is right, but, as soon as you sit down with the salesman to hammer out a deal, he tells you he can't quote you a specific figure because the price is based on a complicated formula that includes various factors such as the size or your garage and the number of passengers and amount of cargo the vehicle will carry per month. Also, he informs you, you'll be expected to pay an annual "maintenance" fee equal to 20% of the purchase price to cover new features that you may or may not use.

Would you: