SandHill.com has a list of trends with implications for software companies. One of them:
10. Enterprises Increasingly Demand Flexible Solutions
“We are about to enter the age of the ASP where software – nearly any kind of software – is available as a service. Not a service you buy and pay for by the enterprise, by the year, but rather a pay for usage model, where a user can buy as little as a single picture or the one-time use of a special font – or budget software for his 20-person company for the next three months, extendable at will.” Amy Wohl, President, Wohl Associates
“Companies that invest in technology solutions will increasingly order ala carte and/or on an as-needed basis. The technology vendors that create pricing models that meet these requirements will win business from the competitors who do not.” Glenn Gow, President & CEO, Crimson Consulting Group, Inc.
“More companies will implement Open Source solutions.” Vamsee Tirukkala, Co-Founder & EVP, Zinnov
Implications for Software Vendors:
1. Deliver a la carte, pay-as-you-go solutions
2. Utilize best-of-breed solutions incorporating Open Source
3. All things are becoming digital think about how your product can incorporate them (e.g. telecommunications, scheduling [PDA], entertainment [Ipod], etc.)
I think ASPs are set to make a comeback. Will write more about this in a tech Talk series soon.