The Book on Software Pricing

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Table of Contents

SPM Authors

Hans-Bernd Kittlaus:

is the owner and managing director of InnoTivum Consulting and works as consultant, interim manager and trainer for software organizations, in particular in the areas of software product management and organizational aspects of software organizations. Before he was Director of SIZ GmbH, Bonn, Germany (German Savings Banks Organization) and Head of Software Product Management and Development units of IBM. He has published numerous articles and books, a.o. “Software Product Management and Pricing – Key Success Factors for All Software Organizations”, Springer, 2009. He is Diplom-Informatiker, ISPMA Certified Software Product Manager, Certified Scrum Product Owner (CSPO), Certified PRINCE2 Practitioner, and member of ACM and GI. Hans-Bernd lives near Bonn, Germany. He is a founding board member and current chairman of ISPMA.

Peter N. Clough:

Graduate of Trinity School (NYC) and Columbia University (BA in French Literature). Prior to joining IBM, worked on Wall Street as an application programming specialist and systems analyst. Joined IBM in 1970, using his Wall Street expertise in several industry sectors, especially Finance. Led efforts in marketing and sales, finance, and business terms for several hardware and software products. Beginning in 1983, majored in developing terms and conditions and pricing for all types of software within IBM. Influenced, participated in or managed every major IBM software terms development since 1983. Spent fourteen years in Europe Middle East Africa Division of IBM, as a business manager, product manager and special bids manager gaining a global perspective. Developed the offerings and price models for enterprise software sales in IBM’s Software Group, and led or structured sales, and provided deal negotiation assistance worldwide. From 2003 to 2008, Enterprise Software Sales Executive and Manager of SW Offerings in IBM’s Software Group, with responsibility for WW software sales to large customers, generally in the 50 to 500M range. Winner of multiple IBM awards including the IBM Chairman’s Award in May 2000 for work done on software enterprise offerings and the Golden Circle in 2006 for sales contributions.

What expert readers say

“These two seasoned practitioners have masterfully distilled the essence of the software business and the art and craft of the increasingly important and challenging field of software product management. Worthwhile to any who want an appreciation of the evolving world of product management, seasoned veteran and new entrant alike.”

Richard Campione, Senior Vice President, Business Suite Solution Management & CRM On Demand, SAP, Germany/USA

“Mr. Kittlaus and Mr. Clough have used their considerable knowledge and experience to succinctly lay out the value chain that is essential to the development of a financially healthy software company. If you want to understand how to turn software technology into a long-term profitable company this is the book to read.”

Paul Kaplan, Vice President, Worldwide Enterprise Software Sales, Software Group, IBM, USA

“This book on Software Product Management and Pricing is the first book that treats the business of software in a systematical way. Although software products were already shipped in the seventies of the last century, there are hardly any books providing an overview of all issues a company faces when playing a role in this industry. Product management and pricing are key processes, and this book informs the reader of the essentials. It is a must-read for anyone involved in software products, be it in business or in research.”

Prof. Dr. Sjaak Brinkkemper, Information and Computing Sciences, Utrecht University, Netherlands

“This compendium covers all facets of the software business using the advanced professionalism of the industry’s global players as its standard. The authors have managed to combine professional accuracy with helpful practical examples and valuable references for further reading. Highly recommended, in particular for managers in corporate IT and software vendor organizations!”

Wilhelm Gans, CTO, DSV Group (German Savings Banks Organization), Germany

“A comprehensive book on best practices for software product management and pricing. It provides a deep insight into strategy and tactics of software organizations in a time of growing complexity and new challenges like Software as a Service.”

Udo Hertz, Director of Information Management Development, IBM Germany Research & Development, Germany