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PwC: Shift to Service-Based Structure Disrupts Software Industry

By Rob Starr, Content Manager, Big4.com

PwC has released the first of a series of reports evaluating the significant shift in the enterprise software sales model from license to services, citing the trend as one of the most momentous upheavals in the technology industry since the unbundling of software and hardware over four decades ago.

The reports explore PwC’s four part pricing management framework including:

• Pricing strategy: including overall pricing goals, strategy and analysis;
• Price formulation: overall/segmented pricing and policies, pricing data and rules;
• Transaction management: requests and opportunities, prioritisation and allocation, quoting and deal management, policy enforcement;
• Performance management: Sales force and partner enablement, pricing performance and management and compliance.

The first paper in the series is an introductory overview of the changing ways that software has been, and should be valued, priced and delivered. Over the next several months, PwC’s subsequent reports will explore the issues with concentration on how these changes have and will continue to disrupt the software industry. The reports will also outline recommended strategies and tactics to address challenges inherent to the changing landscape, showcasing industry leaders whose adoption of these tactics have already proven successful.

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