Month: December 2015

“The Software Paradox”, book review

Published on: 13.12.2015


Number of pages: 62
Written by: Stephen O’Grady
Publish by: O’Reilly Media

This is very interesting book regarding software business, read it.

I read this book because it is very short, around 60 pages. I can read it fast, and if book is not good at least I did not spend much time on it.
But the book is great.

Software paradox means that even as software is more used everywhere and is more strategically important than ever before, but making money from software is getting harder and less profitable.
This is basic idea of book that is explained in first chapter.

Chapter 1 describes what is software paradox.
Chapter 2 present evidence for software paradox and present four generations of software valuation.
Chapter 3 explained what have influenced decline in revenue from software, examining competing with free, available, customer and developer empowerment.
Chapter 4 is describing how few companies are coping with software paradox.
Chapter 5 has some advice on what to do.
Chapter 6 is just final thoughts.

Point of this book is that businesses should shift from making money from software, to making money with software.
Because profits from making money from software are declining and will got to zero (in most case).