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Software industry business models include SaaS (subscription-based), PaaS (platform services), IaaS (infrastructure services), and freemium (free with premium features). Others are perpetual licenses (one-time fee), ad-supported (free with ads), open source (free with paid support), pay-per-use (usage-based), and consulting/customization services.
The rise of the Internet and cloud computing enabled a new model, software as a service (SaaS), [18] in which the provider hosts the software (usually built on top of rented infrastructure or platforms) [19] and provides the use of the software to customers, often in exchange for a subscription fee. [17]
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The Forbes list for software companies includes only pure play (or nearly pure play) software companies and excludes manufacturers, consumer electronics companies, conglomerates, IT consulting firms, and computer services companies even if they have large software divisions.
Software engineering is a field within computer science focused on designing, developing, testing, and maintaining of software applications. It involves applying engineering principles and computer programming expertise to develop software systems that meet user needs.
Organizing a software company is a very specialized type of management skill, where experienced persons can turn the organizational problem into a unique benefit. For example, having sub-teams spread in different time zones may allow a 24-hour company working day, if the teams, systems, and procedures are well established.
Before the microcomputer, a successful software program typically sold up to 1,000 units at $50,000–60,000 each. By the mid-1980s, personal computer software sold thousands of copies for $50–700 each. Companies like Microsoft, MicroPro, and Lotus Development had tens of millions of dollars in annual sales. [37]
Software engineering is the application of a systematic, disciplined, quantifiable approach to the design, development, operation, and maintenance of software, and the study of these approaches; that is, the application of engineering to software.