Search Maxwell's Daemons Warning: This blog is considered harmful Menu Search Search for: Close search Close Menu Categories Software Business Models for Software Developers Post author By maxx Post date 2010-05-29 Recently I’ve been reading Steve Blank’s articles on startups. One of the principles that Steve espouses is that a startup is an organization formed for the purpose of finding a profitable business model. He points out that most business plans are not successful, and the successful startup is rea
In consulting, the software developer finds someone with a problem and creates software to address that problem. In most cases, the software is custom tailored for the customer and typically the entire IP (intellectual property, such as copyrights) is sold to the customer. This is the least cost efficient form of software development because there is no reuse nor amortization of cost for the development of the software. Software produced as a consulting effort typically costs tens if not hundreds of thousan
Much like consulting, internal software development involves writing for customers (other departments within the company such as HR, Marketing, and Sales) but is typically full time employment. Companies may look at the cost of software projects and decide it is more economical to hire a group of developers and produce the software themselves. It shares most of the disadvantages of consulting, but has the advantage of being the target of most development tools and methodologies. Virtually every company with