Software licensing models amid market turbulence

Abstract

Paying a maintenance fee for licensed software is one way of getting corrective, perfective and adaptive maintenance done, in whole or in part. This paper reports on the experience of Cadence Design Systems, Inc. in modifying its software licensing fees. The paper gives background on Cadence, and reviews the historical development of the software licensing maintenance fee. The paper then summarizes the current pressures for changes in licensing practices and maintenance fees to fit customer needs better, and describes the experience Cadence has had with the changes it adopted. The paper closes with four lessons learned relevant to software maintenance. © 1997 John Wiley & Sons, Ltd.