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:Slashdot and SW

[Saeed al-Sahaf]

Most people here don't buy software - they get it from edonkey/torrents anyway.

And this is an interesting point. I've always been amazed at the dollar figures the BSA gives out for the "value" of "pirated" software, avoiding the fact that a large percentage of these people would not have bought the legitimate copy anyway.