An increasing number of SMBs and other enterprise software customers are getting fed up with paying for software features they may never use, suggests a new IDC report. The solution? Usage-based software pricing.
"Customers believe they have been forced to buy more software than they need or use," wrote IDC analyst Amy Konary.
According to Konary, software vendors need to start looking at pay-per-use models "where real value is in the ease, intuitiveness, and seamlessness of the experience." She likened the idea to the music industry, in which customers are no longer forced to buy a CD in order to enjoy one or two songs.
On the flip side, vendors fear they would lose revenue by switching to a pay-per-use model, and Konary concedes this is a valid concern. However, she suggests a compromise like the tiered pricing used by cell phone carriers.
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