Type 1

1. High Production Cost for the Producer
2. Low Maintenance Cost for the Consumer
3. High Maintenance Cost for the Producer

Examples: Games, Microsoft Office, Mobile Apps

Type 2

1. Variable Cost for the Producer
2. High Maintenance Cost and Production Cost for the Consumer

Examples: Majority of In-House Softwares, Software Services, Out Sourcing …

Type 3

1. High Production Cost for the Producer
2. Variable Cost for the Consumer
3. High Maintenance Cost for the Producer

Examples: Software as Service products

If the client is confused about Type 1 or Type 2 or Type 3 it is a fucking headache. They won’t be paying properly and their expectations are fucking skewed from the Start.

Type 1 Software is like building a “Car”.
Type 2 Software is like building a “Ammonia Factory”.
Type 3 Software is like building a “Mc Donalds”.