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Line56: Open Source Rules

Dec 06, 2005, 18:15 (1 Talkback[s])
(Other stories by Antony Awaida)

"Let's face it: The traditional software business model is broken--A recent study by Goldman Sachs shows that in 2005 software companies will spend 82% (up from 66% in 2000) of their new license revenues on sales and marketing. In other words, software firms are charging customers for their sales efforts under the guise of license fees! Since most customers dislike the dreaded sales cycle, I suspect many of them will take their money and put it elsewhere--most likely into software companies who charge less for their sales efforts.

"How can software companies afford to plough most of their license revenues into sales and marketing? The answer is maintenance fees..."

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