The future of software pricing excellence

An introduction

The shift in enterprise software sales from license to services is amongst the most dramatic and traumatic upheavals in the technology industry.

The future of software pricing
 

XaaS services

2011 XaaS services revenue

The new state of the art

The current state of pricing in the software industry is, to put it mildly, chaotic. Whilst many industry leaders realise their pricing is suboptimal, they don't know how to fix the problems.

Optimal pricing requires multiple inputs

The future of software pricing
 

Optimal pricing requires multiple inputs

The future of software pricing excellence: SaaS pricing

Pricing management is key to making a successful transition to the SaaS business model. PwC has identified the characteristics that define the leaders, laggards and mainstream practitioners of SaaS pricing.

SaaS pricing

The future of software pricing excellence: Transaction pricing management

Businesses with high profit margins are tempted to offer substantial discounts to capture new customers or keep current ones when faced with competitive pressures. This is an especially important issue in the software industry, where discounting off of the ‘list’ price of as much as 100% is common.

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Overview

Explore the topic of software pricing excellence, along with the impact of new pricing, licensing and delivery models on other parts of the industry. This series of articles will help software vendors make wise tactical and financial choices as they shift from a product to a services based business model.

 

Related materials

 

Contact us

If you'd like to talk about this or related topics, please contact us.

Mark McCaffrey
Global Software Leader
+1 (408) 817 4199
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Pierre Marty
European Software Leader
+33 1 56 57 58 15
Greg Unsworth
Asia Technology Leader
+65 6236 3738

The future of software pricing
 

Optimal pricing requires multiple inputs