The New Software Pricing Model: Can the Older Giants Compete?

Cloud computing is not only changing how users access software applications, it's also upending the pricing model for software products. Fading fast are the days when software packages were sold in boxes with a one-time, perpetual software license fee. Instead, consumers and businesses are increasingly turning to subscription models and are buying only those applications they need for particular tasks rather than broad, general-purpose suites.
Meanwhile, software giants, which have traditionally relied on the boxed approach, are trying to keep up with disruptive distribution and pricing models that may threaten their lucrative way of doing business. Microsoft already offers subscription versions of its software under its Azure cloud computing brand, and in June the company launched Office 365, an online version of its Office software suite. Adobe has plans to offer Photoshop and the other applications in its Creative Suite by subscription through its Creative Cloud.
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