Vendors must make fundamental changes to sales and support processes to accommodate on-demand, transaction-based pricing. Software vendors must rethink the kinds of functions they provide, how best to deliver those capabilities, and what approaches to take through the channel.
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on Vendors Quick ramp-up, lower implementation, and the almost non-existent support costs of hosted software services makes utility or on-demand pricing appealing customers. However, vendors embarking on these new pricing models (see Parts One and Two ), which treat software as a service, are sure to experience growing pains. Traditional upfront licenses provide a big gulp of revenue which decreases between releases. However, utility or grid computing, which is more or less a pay-as-you-go