A world where people pay for software
The link doesn’t talk about the SAAS model, which is probably the most profitable (and ubiquitous) one these days.<p>I know people like to rail against it, but I actually like the SAAS model. It keeps incentives aligned. It used to be that I might shell out $200 for a piece of productivity software. Now, I might pay $10 a month instead. The thing is that under the old model, a company was incentivized by make a sale but retention didn’t matter. Now, a sale is almost worthless, but retention is very valuable. Yes, over time I will pay much more with SAAS, but I also have companies that are incentivized to keep the software working. It doesn’t matter that I have a perpetual license on accounting software I bought in 2005… it no longer functions with my operating system anyway. SAAS helps solve this problem.