Seven Business Software Models

By Paula Klein  |  Posted 08-04-2008 Print Email

Seven Business Software Models

1. Traditional: Software is licensed with a one-time price. Maintenance and support carry separate charges.

2. Open source: The software is free, and support usually comes from the open-source community or a developer company.

3. Outsourcing: Offers third-party management of software for a monthly fee.

4. Hybrid: Provides traditional licensing, with service from the vendor rather than from in-house staff or value-added resellers.

5. Hybrid-plus: Software and service are provided on demand, as needed.

6. SaaS: Both software and service are offered only as online services, such as those from

7. Internet software businesses: The software is the uniqueness of the company, such as eBay and Google.


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