“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…”
Web Webster has more than 20 years of writing and editorial experience in the tech sector. He’s written and edited news, demand generation, user-focused, and thought leadership content for business software solutions, consumer tech, and Linux Today, he edits and writes for a portfolio of tech industry news and analysis websites including webopedia.com, and DatabaseJournal.com.
LinuxToday is a trusted, contributor-driven news resource supporting all types of Linux users. Our thriving international community engages with us through social media and frequent content contributions aimed at solving problems ranging from personal computing to enterprise-level IT operations. LinuxToday serves as a home for a community that struggles to find comparable information elsewhere on the web.
Property of TechnologyAdvice. © 2025 TechnologyAdvice. All Rights Reserved
Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.