Trends in Delivery and Pricing Models for Enterprise Applications: Pricing Options
P.J. Jakovljevic - March 30, 2005

Introduction

The licensing and delivery of enterprise software products are making a fundamental shift from traditional up-front fees to incremental, per-transaction, and even success-based pricing. These are popular alternatives especially for small businesses and startups that lack the IT budgets of larger, more established companies. With these models, smaller companies can acquire software for a lower entry cost, paying more as business expands. At the same time, despite the many hiccups experienced by first generation application service providers (ASPs), vendors are also developing evermore creative hosted or managed "software as a service," and other delivery approaches in terms of on-demand availability, appropriate pricing models, etc...