Earlier quoted context omitted.
> how different is the impact on the manufacturer when the software is used by 1k users, 1M users, and 1B users? _very different_, when the user's environment is different. And 1) you haven't seen shit if you think you can perfectly control the user's environment. 2) every new user is a chance for the environment to bite you. > Do they make the product unprofitable or unsuccessful in anyway? You do your engineer best…
> _very different_, when the user's environment is different. And 1) you haven't seen shit if you think you can perfectly control the user's environment. 2) every new user is a chance for the environment to bite you. Can you provide some examples of this? I'd like more info here, because off of the top of my head, I can think of the following counter-examples: 1. This isn't a new problem. User environment has been an…
I think you're assuming more of my answer than what I gave. That's fair given that this is the point of the article, but it's not mine. I'm very specifically only responding to "is there a per-user marginal cost on software?", and my answer is most definitely yes.
To warrant a recurring payment business model, I think the right question to ask is "Is there a per user-year marginal cost on software?", and now the answer is in my view, much more complicated and domain-specific. Worse yet, I think that there's perverse incentives at play here in recurring payments.