While movements like The Pirate Party seem rather silly to me, it seems axiomatic that software, as an intellectual product, must eventually move to a no-cost license model. That does not mean “free,” as in beer (the BSD crowd) or anything else. As you say, the marginal cost of the next copy of a software product is zero; but not so in maintenance, fixes and support.

That is where the model needs to change. The distribution model for support, training, and even “value add” marketing, has not changed much since the 1970′s… even with so-called Open Source. This is the challenge and opportunity for software vendors. Come up with new, exciting, accessible and high-quality training models – people will pay for that kind of educational opportunity, and they will see the value in “high-touch” technically oriented marketing and sales efforts.

There is nothing worse than traveling long distance for a training event only to return thinking, “if I just shut myself off for two days with the software and a good manual, I’ll learn far more!” Marketing efforts that encourage people to think and share ideas, even if uncomfortable for the vendor, always provide high-value.

Vendors should stop considering support and training a “necessary evil” and small profit center. Done well and with real value, these activities could represent much of the companies profitability, engender loyalty, and tangibly remind customers that software really is an intellectual property. Best regards, The Old Quant CFA