Industrial and Economic Properties of Software Technology, Processes, and Value

Abstract

Reproduction for personal and educational purposes is permissible. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. The views presented in this paper are solely those of the authors and do not represent the views of either the University of California or Microsoft Corporation. Software technology and its related activities are examined from an industrial and economic perspective. More specifically, the distinct characteristics of software from the perspective of the end-user, the software engineer, the operational manager, the intellectual property lawyer, the owner, and the economist are identified. The overlaps and relationships among these perspectives are discussed, organized around three primary issues: technology, processes, and value relationships. Examples of the specific issues identified are licensing vs. service provider models, alternative terms and conditions of licensing, distinct roles in the supplier value chain (development, provisioning, operation, and use) and requirements value chain (user needs and requirements), and the relationship of these issues to industrial organization and pricing. The

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