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Wednesday 25 July 2012

Software vendors staring business model disruption in the face?

LogoWe highlighted the significance of the European Court of Justice ruling on second hand software sales earlier this month - further analysis reveals just how disruptive this decision could be for all software vendors who do business in the EU region.

The nub of the ruling is that businesses who purchase software on a perpetual basis are legally allowed to resell it. That has immediate implications for vendors’ addressable markets and potential revenue, but even more significantly, it could hit valuable maintenance streams as well as accelerating the move to a subscription model. Vendors need to make contingency plans now to deal with a disruptive ruling that could force a change in conventional software business models. TechMarketView subscribers can read our findings in Second-hand software: vendor implications - here.  If you are not a current subscriber Deb Seth (dseth@techmarketview.com) will be happy to help.

Posted by Angela Eager at '18:52' - Tagged: software   litigation