Abstract
This IDC study introduces the notion of utility pricing and presents empirical data that
demonstrates there is, in the software industry, both interest and skepticism around utility
pricing. The study also talks about some of the challenges to adoption of these models and describes
a few utility pricing models that are in operation today.
There has been much discussion in the IT industry about utility pricing for IT products and
services. Most examples of IT utility pricing models in existence today are for systems and storage
products rather than software. However, this is changing as customer interest in utility pricing of
software grows, technologies to meter software proliferate, and software vendors increasingly offer
customers a range of software purchase options.
"While there is growing interest in software utility pricing models, customers and vendors
are still uncertain of how these models will unfold," said Amy Konary, program director for
Software Pricing, Licensing, and Delivery at IDC. "In addition to software utility pricing
models, the software architecture and delivery methodology must enable the flexible deployment of
software resources."
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