Calculating the True Price of Software

By John Locke on July 24, 2005

Interesting analysis of the cost of software, applying the pricing model for financial instruments such as options and calls to support contracts: ONLamp.com: Calculating the True Price of Software.

From the article:

For the open source movement, perhaps a better way to position the change that OSS is making is this: we're converting warrants on future maintenance and enhancements into options, which means that instead of having a sole supplier (warrants), we have created a third-party market (options) of these derivatives.

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About the Author

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John Locke is the lead developer and founder of Freelock, LLC. In addition to being a proficient web developer, he is an experienced technical writer, network administrator, and all around problem solver. He has worked with computers since 1984, and currently advises small businesses on open source software.