Types of software products

In this article I want to write about some types of software products, their advantages and disadvantages. I hope this information will help you when you make a decision on how exactly to implement the idea and how to sell your product. Since there has recently been a clear tendency to move from desktop applications to web applications, I begin the description with web applications and compare other types of applications relative to them. So,

1. “Software as a service” (Software as a service, SaaS)
Type of applications that are hosted and run on the developer’s hosting. Users are given access to software over the Internet. Here are some examples of SaaS applications:

Examples of SaaS applications:

1. My business is online accounting
2. MoySklad - warehouse accounting
3. Megaplan - medium and small business management system
4. FogBugz - bug tracking system
5. Google Apps - Google Enterprise Services

Profit recovery:

The main way to generate income from such products is to subscribe, i.e. periodic payments (monthly, quarterly, annual).

Benefits for developers:

1. Permanent subscription income
2. There is no need to support multiple versions of the product, since all users work with one version
3. Updates are instantly available to all users.

Benefits for users:

1. Subscription is cheaper than paying for a license when buying a boxed product
2. No need to maintain your own infrastructure, install / upgrade software
3. Updates are free and do not require user intervention.
4. The ability to "quickly" try the product

Disadvantages:

1. Web application development requires knowledge of a number of technologies.
2. Need to support cross-browser compatibility
3. Some users (especially large companies) will not want to store their data on external servers.
4. Requires ongoing support for hosting, security and backup

2. Downloadable web applications
This type of product eliminates one of the disadvantages of the previous one, allowing
users to download the application and install it on their servers. Thus, all user data will be stored on their side.

Examples of such products include:

1. Bugzilla - bug tracking system
2. SugarCRM - CRM system (Customer Relationship Management)
3. Compiere - ERP system (Enterprise Resource Planning)

Profit recovery:

As a rule, such products are either free or require a one-time payment. In addition, developers can offer paid support services.

Benefits for developers:

There is no need to maintain the infrastructure, backup and responsible for the security of user data.

Benefits for users:

1. Users retain full control over their data
2. Users can modify the application to fit their needs, as well as integrate it with the existing infrastructure.

Disadvantages:

1. Since each user has his own copy of the software (various modifications), support may be burdensome
2. One-time payment, as opposed to a subscription
3. It is more difficult for the user to decide on the purchase of a product, since one-time payment is higher than the subscription
4. The user must have technical knowledge to support its own infrastructure, which narrows the market compared with the previous type of software product
5. The update procedure requires the intervention of a technical person.
6. Need to support cross-browser compatibility

3. Desktop applications
Despite the trend of transition from desktop applications to web applications, while web applications cannot be a full-fledged replacement for such application classes as antiviruses, software for audio / video processing, software for working with graphics.

Profit recovery:

Basic income is derived from a one-time payment. In addition, developers can offer paid support services.

Benefits for developers:

1. No need to worry about cross-browser compatibility.
2. No need to maintain a server

Benefits for users:

1. Users retain full control over their data
2. The user interface can be much better than the web application interface.

Disadvantages:

1. Support may be burdensome due to the fact that different users have different versions of the product.
2. One-time payment, as opposed to a subscription
3. It is more difficult for the user to make a decision about the purchase of a product, one time payment can be quite high
4. The upgrade procedure can be problematic for the user, which will generate additional calls for support.
5. The need to support the correct functioning of the program on different versions of the operating system (for example, WinXP and Win 7)

4. Mobile applications
Mobile applications are designed for mobile devices - mobile phones, smartphones, PDA, MP3 players, etc. The most common operating systems for such devices are Android, iPhone OS, RIM BlackBerry OS, Windows Mobile.

Recently, the mobile application market has been growing dynamically. According to some estimates, the number of mobile device users should grow from 100 million in 2009 to one billion in 2013.

Profit recovery:

As a rule, mobile applications either require a one-time payment, or are free.

In the second case, mobile applications serve as an additional means of accessing web applications. Examples of such a bundle, a web application + mobile application, can be:

1. Remeber the milk - online task management system
2. Alfa Mobile - mobile access to the account of Alfa Bank

Benefits for developers:

1. As a rule, there is a special place (such as Android Market, iPhone Apps Store, Ovi from Nokia), where users can buy the app. There are good chances that users will accidentally stumble upon your application.
2. The market is young and less competitive than the desktop or web application market.

Benefits for users:

The ability to access the application at any time

Disadvantages:

1. Mobile devices have very limited resources, so mobile applications cannot be as powerful as desktop or web applications.
2. Since for programming for different operating systems in most cases different technologies are used, it becomes necessary to select a specific operating system.

5. Plug-ins for third-party products
There are many software products that provide external APIs for developing additional extensions. Examples include Vkontakte, Facebook, WordPress, Firefox, LiveStreet.

Profit recovery:

For the most part, plug-ins are free and revenue is generated through advertising, donations, affiliate links, etc.

Benefits for developers:

1. If you have developed a good application, you can get exponential growth of users due to viral marketing.
2. Often, there is a special place (such as, for example, Add-ons for Firefox, WordPress Plugin Directory) from where users can download extensions. There are good chances that users will accidentally stumble upon your product.
3. The market is young and less competitive than the desktop or web application market.

Benefits for users:

Extensive selection of new functionality and additional features created by developers independent of the target platform developer

Disadvantages:

Due to "weak" methods of extracting profit, there are few examples of applications that bring real income.