Type 1
- High Production Cost for the Producer
- Low Maintenance Cost for the Consumer
- High Maintenance Cost for the Producer
Examples: Games, Microsoft Office, Mobile Apps
Type 2
- Variable Cost for the Producer
- High Maintenance Cost and Production Cost for the Consumer
Examples: Majority of In-House Softwares, Software Services, Out Sourcing …
Type 3
- High Production Cost for the Producer
- Variable Cost for the Consumer
- 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”.