From software to service: the transformation of shrink-wrapped software on the Internet

The paper considers how software is undergoing a fundamental change. A new more efficient kind of Internet-ready software is pre-empting traditional shrink-wrapped software. Consequently the software industry is quickly shifting from a product industry to a service industry. This transformation will make all aspects of software more efficient and is therefore inevitable. We have already seen hints of this future in both the corporate and research worlds. However, software designers will have to be fast and flexible to successfully compete in this new market. This new breed of software will bring new payment models as well. No longer will customers own software. Instead, they will rent software, based on their use.