4.2. Use Value and Sale Value
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A software's use value is its economic value as a tool, a productivity
multiplier.
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A software's sale value is its value as a saleable commodity.
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The vast majority of code (about %95) has no sale value: in-house software,
embedded software, customizations of programs for the organization, hardware
device-drivers or other hardware-assisting software.
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Only a small amount of the code (which includes most of the open-source code
out there) can be sold or distributed in some way.
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Making your revenue stream dependant on sale value leads to many complications:
you seek the most buyers (to maximize revenue) but the least actual users (to
minimize support).
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Once a market matures and sales slow down, most vendors will have no choice
but to cut expenses by orphaning the product.
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That's why commercial software does not correspond to the "Factory Model":
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Most developer time is paid for by sale value.
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The sale value of software is proportional to its development cost and
to its use value.
Refer here for the complete details
Written by Shlomi Fish