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

The actual price of SW.

[alexhs]

Is there a way to put a price on the software, support, maintenance, and the option for future upgrades itself?

Easy, these prices are proportional to the penetration indice of your previous software : a monopoly charge high fees, an outsider small ones.

Re:software is worth..

[Metteyya]

...unless there is monopoly or software doesn't have more-or-less equal alternatives (Photoshop, Autocad and so on).

Remember, that basic laws of free market (like the one in parent post) apply to market with equal (or almost equal) products.

If you are an architect and the only really viable piece of soft for you is Autocad, you can't speak of free market here.

Re:To me..

[bnenning]

Tell you what: in a normal world, if Adobe Premiere Pro isn't worth 800 to you, you don't buy it, and you certainly don't steal it. Period.

I'm disappointed at how many people here go along with the BSA/**AA line. Duplication is not theft. It may be illegal, and it may be wrong, but there is a clear difference.