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Why 'free updates for life' is bad for the customer...

Sunday, March 19, 2006 by JcRabbit | Discussion: Personal Computing

People sometimes forget that making software is a business. Inexperienced shareware authors seem to forget this sometimes too, and offer life-time free upgrades. Business-wise this makes no sense and, in the long run, they are shooting themselves (and indirectly their customers) in the foot. This is why and what usually happens:

A successful business has to rely not only on new customers but also on repeated buys from their existing customer base in order to remain viable. This is because while a new business's customer base may expand rapidly in the beginning, at some point this expansion will eventually stop or dwindle to a fraction of what it once was when the novelty wears off or the market becomes saturated.

As long as a shareware author can derive his livelihood from what he does, he will keep at it. But once cash flow trickles to a fraction of what it once was - and it will with a life-time of free upgrades policy - and the shareware author begins struggling just to put food on his table, he will finally realize that all he managed to do was to put himself into a corner. He will then do one of three things:

1) Get a real job and abandon the project altogether.

2) Rename his current project, declare the old one dead, add a few new features, and sell it off as if it was a brand new application (so users of his old project have to pay again).

3) Start a new, completely different, project.

In the first case, everybody loses. Your 'lifetime' free upgrade license is now useless simply because the product is dead and no more upgrades will be issued.

While the second case seems a bit far fetched, I've seen it happen quite often. Not willing to discuss the ethics of such a move (the alternative is worse), I can safely say that your 'lifetime' of free upgrades license is also useless in this case.

The third case is just a delay of the inevitable, because, unless the shareware author changes his business model, the same thing will happen again further down the line. Plus, his focus will now be on the new application - the one that is bringing him the real money - instead of the old one. Updates will now dwindle to a trickle of what they once were. The product is not dead but it is in 'limbo'.

Note that I've been talking about 'professional' shareware authors (those who manage to make a living out of what they do), I'm not even referring to those who do it simply because they like it, or because it gives them pocket money. Their story is a lot simpler: one day (sooner than you think) they will lose interest and, unless someone is there for them to pass the torch, their project is dead too.

I hope you now understand better the real value of 'life time of free upgrades'. What do you prefer? A product that offers you free upgrades for life but is only around for a couple of years, or one where you have to pay from time to time to support development - and only when and if you think the new features are worth it! - but which will keep you happy for many years to come (Winstep Link has been around since 1998, by the way) ? That's a question only you can answer.

So, what is the best solution for both the user and the shareware company? Something called the 'subscription based' model. This, by the way, is also Stardock's main business model.

When a person hears the word 'subscription', their first reaction is to cringe and think they are renting the software rather than buying it. Nothing could be further from the truth:

When you purchase an application, subscription or not, the version you bought is yours FOR LIFE. It will not time out on you or suddenly stop working if you don't renew your subscription. It's like when you purchased Windows 98, for instance. It's yours to keep. That, however, does not mean that you are entitled to upgrade to Windows XP for free. When the time comes, you can choose either to upgrade (and pay for the privilege) or keep on using the Windows version you bought. If you accept this from Microsoft, why shouldn't you from shareware companies?

Now, the subscription method has, for the user, a HUGE advantage over this way of doing things. Keep with me:

Still using Microsoft's example, between Windows 2000 and XP, all you got for free were service packs and bug fixes. No real new features. In fact, Microsoft saved the real BIG changes for XP.

In the shareware world, when a company is offering minor upgrades for free and only charges for major upgrades (Winstep's former business model), in order to justify a major upgrade most companies will sit on top of the real big changes/new features until they can round up enough of them to justify a major upgrade. In practice this means that your free minor version releases will not contain much more than bug fixes and minor enhancements. The really juicy stuff is saved up for later.

Why is it like this? Because otherwise the difference between the last free minor upgrade and the major version release would be so relativelly minor that few users would feel compelled to upgrade. The price the user pays is that the introduction of really cool features X and Y is deliberately delayed by a few months or longer, so that those features can be part of a major version release which you will have to pay for anyway. I'm aware this might shatter the ilusions some of you have on how the shareware business operates, but the fact is that this *is* a business. And, business wise, what I described above makes sense.

Now, my problem is that I never liked to hold back on implementing new features. The result, for instance, is that nearly 5 years have elapsed since the first WorkShelf release and we are still at version 1.x. Five years of free upgrades with lots of really cool new features being added all the time. Same thing happened with NextSTART, it took 3 years for it to go from version 2.0 to 3.0. It's a bad business decision that is sustainable as long as you have a large continuous flow of new users, but which will bite you back once the market becomes saturated (and it always does).

Now lets compare this mess with the advantages of a subscription-based business model (and, again, keep in mind that the subscription is ONLY for the updates. You get to keep what you paid for and all the free updates you might get until your subscription period runs out):

Advantages for the user:

a) Really cool features X and Y are now added all the time, as soon as they are thought of/requested. This is because the shareware company no longer has to worry about saving them for a major upgrade.

You know and see your money being put to good use, plus you know you are keeping the company from going belly up, thus ensuring many years of continuous improvement on your favorite applications. You also know that, if you don't like the direction things are going, you always have the choice NOT to renew your subscription. You get to keep everything you got until that moment.

c) You know the company MUST keep a constant flow of updates, otherwise users will not renew their subscriptions. In other words, you keep the shareware company on their toes, to your advantage.

Advantages for the Shareware company:

a) You no longer have to hold back on implementing cool new features. You can add them as you think of them. Constant developement is not only encouraged as it becomes a necessity.

Your company is now supported not only by the flow of new users as well as by your current user base. As long as you keep your current user base happy, you know your company won't suddenly go belly up because your market has become saturated and you can no longer afford to put food on the table.

From my point of view, the subscription model for updates is a win-win situation.

Even the major anti-virus companies, like Symantec and McAffee are going for it: you purchase their AV applications and you get a one year period of free virus database updates. After that you can renew your yearly subscription in order to keep your Virus database current. This not only supports the company (what good is a dead AV company with a stale virus database?) as it keeps them on their toes regarding new viruses that suddenly pop up on the wild.

Jorge Coelho
Winstep Xtreme - Xtreme Power!
http://www.winstep.net - Winstep Software Technologies

PowerUser.TV: UnderTheSkin Episode 8 Show Notes

Late! Curse the busy lives of Geeks!

Wednesday, March 15, 2006 by CerebroJD | Discussion: Community

Well, this was fun trying to get this one recorded... CerebroJD is on 'vacation' at his parents house, so he took a break from that crazy time to do the show. He even got everyone else out of the house so its quiet! Amazing! Technical difficulties abound, due to crappy connection speeds etc., but we got it done! We talk about a couple of skins first, as well as some things about Galactic Civilizations II. Justin also found some interesting news about a university that has banned the use of ANTI-plagerism services. Its astounding what lengths cheating students will go to to make sure they dont get caught... Anyways, thats a fun rant. We wrap up lamely, but its a good show. Have a listen, we'd love to hear your point of view on the topics we discuss!

Right Time - WindowBlinds
Blue Horizon - IconPackager
Anti-anti-plaegerism?!
Galactic Civilizations 2

If you have any skins you'd like reviewed or discussed, let us know! We're always on the lookout for topics of discussion, and feedback from users is welcome!

Microsoft Building New Free Mail Client

Sunday, March 12, 2006 by Island Dog | Discussion: Windows Software

"

Internet Explorer isn't the only application to enjoy a resurgence in Windows Vista -- Microsoft is readying a new desktop e-mail client that will be integrated into Windows Live and eventually replace Outlook Express. Dubbed Windows Live Mail Desktop, the product is currently in beta testing.

As IE development stagnated following the release of Windows XP, Outlook Express -- Microsoft's free e-mail client -- suffered a similar fate. But the OE team returned to update the product for Vista under the name Windows Mail, and is now expanding that work with a completely separate application."

Music Site To Let Users Swap CDs

Friday, March 10, 2006 by AtlanticCanadianScot | Discussion: Websites

A new online music service called La la Media Inc. aims to offer full-length CDs for $1 by letting members trade used physical discs, in a new twist on the popular but legally challenged practice of online song swapping

Backed with $9 million in funding by Bain Capital and Ignition Partners, La la works like an online music co-op by enabling members to trade physical CDs they own for physical CDs they want, Bill Nguyen, co-founder of La la, said ahead of the Tuesday announcement.

With 1.8 million album titles available, members trade the CDs in prepaid envelopes, much like popular mail-order DVD service Netflix Inc. operates.

La la said it is talking with the world's major music labels to obtain licenses for the sale of digital music.

La la said it enables members to buy a physical CD new if they cannot get it for trade and also hopes to eventually offer digital album downloads at retail prices.

It does not plan to offer digital downloads of singles.

Officials for the major labels -- EMI Group Plc, Vivendi Universal's Universal Music, Sony Corp.'s and Bertelsmann AG's Sony BMG, and Warner Music Group Corp. -- either declined comment or were unavailable.

A spokesman for La la said it expects 30 percent to 40 percent of its revenues will come from trading, with the rest to be obtained through sales of physical CDs, through a deal with CD distributor Baker Taylor, and eventually from digital downloads.

La la founders argue that, unlike underground online file-sharing services, which have been sued for copyright infringement, La la is protected under an exception to the U.S. Copyright Act. They contend that the owner of a CD can transfer a legally acquired copy without permission or payment of additional royalties.

A member will pay $1 to La la for facilitating the trade on receipt of a disc from another member, plus a 49 cent shipping charge.

La la said it will set aside 20 percent of its trading revenue for recording artists.

Other Web sites, such as Peerflix and BarterBee, are also enabling consumers to swap used merchandise.

Peerflix allows members to legally trade DVDs, while BarterBee lets people swap between multiple media, such as DVDs, music and games.

Windows Live from Microsoft

Friday, March 10, 2006 by DJBandit | Discussion: Personal Computing

I found this on the Microsoft site and was wondering what do you guys think?

Windows Live Link

What is Windows Live?
Your online world gets better when everything works simply and effortlessly together. That's the basic idea behind Windows Live. So the things you care about—your friends, the latest information, your e-mails, powerful search, your PC files, everything—comes together in one place. This is a brand new Internet experience designed to put you in control. And this is just the beginning—you'll see many more new services in the coming months.

What is Windows Live Ideas?

Windows Live Ideas is where you can check out the very latest Windows Live products—so new that they're not even finished yet. So give them a try and then tell us exactly what you think. And don't hold back. We need your help to make these products the best they can be.



These are some of the features of Windows Live:

Windows Live Search beta

Windows Live Search beta makes it easy to find the information you want. No matter what you’re looking for—music, images, the closest pizzeria to your hotel, something you thought you read online a month ago—you’ll simply find it faster.


Look out google, here comes Microsoft. It’s a matter of testing it to see if it works for you I guess.

Live.com beta

Have your way with this page. Sign in, get the content you want—news, sports, search results, whatever—add columns, and move stuff around at will. It’s all you.


This would be the equivalent of my yahoo web page where you can see you emails, get news reports, funny pages, stock market and more. Looks interesting.

Windows Live Toolbar beta

This super-handy tool lets you search from any Web page. It also helps block pop-up ads, and warns you when it looks like you might be the target of an identity theft scam.


This must be the next update to the MSN toolbar for IE. I use google often but if it works why not?

Windows Live Expo beta

Expo is an online social marketplace where you can exchange goods, ideas or information with anyone you choose, anywhere you want. And it just might change your idea of what an online community can be.


Now this sounds interesting, it’s like combining eBay and the classified section.

Windows Live Messenger beta

This will be the next-generation MSN Messenger. The name is new, but it will still be free to download Messenger and use most of its features. And there will be some remarkable new ways to instantly share and connect with friends.


MSN Messenger under another name, will this be version 8? I am curious to see what new features it will bring.

Windows Live Mail beta

It’s all-new Web mail, built from the ground up. Preview your e-mail without loading a new page each time (like Outlook®) drag and drop messages into folders, and generally power through your e-mail in a flash.


This is basically hotmail under another name I guess. Oh well, hotmail works fine for me.

Windows OneCare Live beta

This PC care service is always on, running quietly in the background. It helps give you round-the-clock protection and maintenance—virus scanning, firewalls, tune ups, file backups, the whole nine yards. Delivered to you in a smooth, hassle-free package.


Finally a virus and spyware system from Microsoft. I would think if anyone knew how to protect Windows files from viruses, Trojans and other malware, it would be Microsoft.

Windows Live Local beta

Advanced, easy-to-read maps, directions, and satellite photos? Sure, but that’s just the beginning. You can also get bird’s eye views of most major U.S. cities, see multiple destinations on one map, and customize your map views.


So this will be kinda like a combination of google earth and the yellow pages. If it can really be very detailed as it claims then it sounds good to me. I have tried similar things and the detail sucks or you can’t find anything on specific places in the US.

Windows Live Safety Center beta

Stop by this free online service station regularly to help protect your computer and keep it in tip-top shape. Get virus cleaning and a comprehensive PC health checkup any time you need it.


This is a pretty neat feature. To be able to access a free anti-virus site online if you didn’t have a anti-virus program on the PC you are currently using and updated at all times.

Windows Live Favorites beta

You are away from your own computer and want to get to the important sites you use everyday? No problem, now that your Internet Explorer Favorites can travel with you.


This sounds promising. To think how useful this could have been so many times before when I access the internet from another PC and couldn’t remember that site that I had on my Fav list.

Windows Live Search beta – mobile

Picture this: You search for a restaurant with your phone, then click on the result to be connected immediately. Plus, you can see detailed maps, driving directions, and more—all formatted to fit the screen on your mobile device.


Windows Live Custom Domains

If you've got a domain (like example.com) we'll set you up with your own personal e-mail address (like [email protected]), with lots of storage and easy Web access to your inbox. And best of all, it's free.


So basically Microsoft is now web-hosting, though it is limited, sounds like a good idea for a small business.

Microsoft Office Live beta

What’s Invisi-Business? It’s what happens when your business lacks a viable Web presence, rendering it virtually invisible to potential customers. Enter Microsoft Office Live beta, to give you a Web site, company e-mail, and more.


Here it’s giving you the ability to connect your Office software to your business website for better use of your software and website. Not bad, gotta wonder on the price though. Still, for business purpose, it looks pretty good.




Microsoft Office 2007

Friday, March 10, 2006 by Island Dog | Discussion: Windows Software

Microsoft has put up a preview section for Office 2007. 

Preview of the "new" gui - http://www.microsoft.com/office/preview/uioverview.mspx

Prices - http://www.microsoft.com/office/preview/pricing.mspx

Origami See the Ultra-Mobile PC Interface in Action

Thursday, March 9, 2006 by Clonmelchat | Discussion: Personal Computing

See the Ultra-Mobile PC Interface in Action
Program Launcher makes it easy to get going
The Touch Pack is a preinstalled suite of software that is built on top of the Windows XP operating system, specifically designed for UMPCs by Microsoft.

The Touch Pack's Program Launcher organizes software programs into categories and it uses large buttons and icons to make it easy to find and launch your favorite applications. The Program Launcher's categories, backgrounds, and shortcuts are all customizable.

http://www.microsoft.com/windowsxp/umpc/howitworks.mspxLink

Don't see what Vista offers over XP except a new GUI?

Wednesday, March 1, 2006 by Thomas Thomassen | Discussion: Personal Computing

This article extremetech.com talks about the changes that's under the hood.
IMO it's these changes that's the important part about Vista. It seem many people make up their mind of what they can see from the screenshots.

Offical Windows Vista versions

Monday, February 27, 2006 by Island Dog | Discussion: Windows Vista

Here is the "official" Vista versions.

Windows Vista Home Basic: For consumers that want to simply use the PC to browse the Internet, correspond with friends and family over email or perform basic document creation and editing tasks, Windows Vista Home Basic will deliver a safer, more reliable and more productive computing environment.

Windows Vista Home Premium: Will help consumers utilize mobile or desktop PC functionality more effectively while enabling the enjoyment of new, exciting digital entertainment experiences – all with the benefit of added security and reliability. Windows Vista Home Premium includes everything in Windows Vista Home Basic, plus the Windows Vista Aero™ and Media Center and Tablet PC capabilities.

Windows Vista Ultimate: Windows Vista Ultimate is the edition of Windows Vista that has it all. It is the first operating system that brings together all of the consumer-oriented features available in Windows Vista Home Premium with all of the business-oriented features available in Windows Vista Business.

Two versions will cater to businesses:

Windows Vista Business: For small to medium size businesses, Windows Vista Business will help keep PCs running smoothly and securely so they are less reliant on dedicated IT support. For larger organizations, Windows Vista Business will provide dramatic new infrastructure improvements that will enable IT staff to spend less time focused on day to day maintenance of PCs and more time adding strategic value to the organization.

Windows Vista Enterprise: To better address the needs of large, global organizations and those with highly complex IT infrastructures, Windows Vista Enterprise is designed to significantly lower IT costs and risk. In addition to all of the features available in Windows Vista Business, Windows Vista Enterprise is designed to provide higher levels of data protection using hardware-based encryption technology.

Vista and DRM

Friday, February 24, 2006 by Island Dog | Discussion: Personal Computing

I have been reading some articles on the DRM that Vista will supposedly include.  I would like everyones opinoins on these.

"Microsoft is taking some heat over a digital-rights management (DRM) feature it's folding into its upcoming Vista (formerly Longhorn) operating system.

The feature, called Output Content Protection Management, encompasses several DRM-related schemes. The one that's raised hackles in several articles and blogs is a DRM-related check that's performed when playing back video on Vista-equipped PCs. According to Microsoft's description, the feature "makes sure that the PC's video outputs have the required protection or that they are turned off if such protection is not available."

In plain English, this means that Vista machines won't be able to play next-generation, high-definition DVDs in their full, high-resolution glory unless they're equipped with monitors that support a new DRM scheme called High-Bandwidth Digital Copy Protection, or HDCP. "

Techweb article - http://www.techweb.com/wire/software/167101037

 

 




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