Calculating the True Worth of Software

chromatic writes "Many people recognize that the cost to duplicate a piece of software is a fraction of the number on its price tag. Many people also understand that software without support and maintenance loses much of its value. Is there a way to put a price on the software, support, maintenance, and the option for future upgrades itself? Robert Lefkowitz recently applied an options pricing model to software in ONLamp.com's Calculating the True Price of Software. Don't let the description fool you; it's both a readable and serious apologia of the common free software business model."

Comments

A Financial Analysis of Things We Already Know

[Akoman]

There is a lot of finance talk going on in this article, but the conclusion he comes to is one that many of us already know: commercial Open Source creates a market for support and maintenance. Article might be good for corporate types wondering why licenses cost nothing over here.

Re:What the competition is charging ?

[Anonymous Coward]

But hey, Google buying up companies and offering the software for free to kill the competition is a honorable thing right?

I think now that Google is a public company it is inevitable that it will follow its motivation. The examples you cite, however do seem to be different. I don't see that any of these products are tied (pdf) to an existing offering, responsible for breaking a competitor's product or obtained through outright theft