How was software traditionally sold in the past

As technology advances, it’s fascinating to look back and see how software was sold in the past. From floppy disks to CD-ROMs, and from proprietary software to open-source solutions, the way we buy and use software has changed dramatically over the years. In this article, we’ll take a closer look at the history of software sales and explore some of the key trends that have shaped the industry.

Before we dive in, let’s establish a few key terms. Software as a Service (SaaS) is a delivery model where software is accessed over the internet on a subscription basis. Platform as a Service (PaaS) is a delivery model where software and its underlying infrastructure are provided as a service. Infrastructure as a Service (IaaS) is a delivery model where the underlying physical infrastructure of a computer system is provided as a service.

Now that we have our terms defined, let’s take a trip down memory lane and see how software was sold in days gone by.

Floppy Disks: The Early Days of Software Sales

The earliest form of software distribution can be traced back to the 1970s when floppy disks were the primary means of storing and distributing computer programs. Floppy disks were small, low-cost disks that could store up to 528 kilobytes of data (equivalent to about one megabyte of text files today).

In the early days, software was often sold on floppy disks as a physical product. Customers would buy a floppy disk at a computer store and take it home to install on their computers. Floppy disks were relatively expensive, and customers had to pay for both the disk itself and any accompanying documentation or support materials.

One of the most iconic examples of software sold on floppy disks is Microsoft Disk Operating System (MS-DOS), which was first released in 1985. MS-DOS was a command-line operating system that became the standard for personal computers in the 1980s and early 1990s. The MS-DOS floppy disk version sold for $49.95, which was equivalent to about $129 today.

CD-ROMs: The Golden Age of Software Sales

In the mid-1990s, CD-ROMs began to replace floppy disks as the primary means of software distribution. CD-ROMs were much larger than floppy disks, with a storage capacity of up to 650 megabytes (equivalent to about one gigabyte of text files today). This meant that software could be distributed on a single disk rather than multiple disks, which made it more convenient and cost-effective for both customers and distributors.

During this period, software sales reached new heights, as companies like Microsoft, Adobe, and Autodesk released popular applications like Windows 95, Photoshop, and AutoCAD on CD-ROMs. These applications were often bundled with other software, such as antivirus programs and productivity tools, which added value for customers.

One of the key drivers of software sales during this period was the widespread adoption of personal computers in homes and businesses. As more people began to use computers, there was a growing demand for software that could help them work and play more efficiently. This led to a boom in software development and distribution, as companies raced to release new products and stay ahead of the competition.

Proprietary Software vs. Open-Source Solutions

Throughout the history of software sales, there has been a tension between proprietary software and open-source solutions. Proprietary software is developed and owned by a single company or organization, and customers are typically required to purchase a license to use it. This means that companies have more control over the development and distribution of proprietary software, but it can also be more expensive and less flexible than open-source solutions.

Open-source software, on the other hand, is developed collaboratively by a community of developers and is often released under a free or low-cost license. This means that anyone can view, edit, and distribute the code, which can lead to faster development and more innovative features. Open-source software can be more flexible and customizable than proprietary solutions, but it can also be less stable and require more technical expertise to use.

One of the key turning points in the history of software sales came with the rise of open-source solutions like Linux and Apache in the 1990s. These solutions challenged the dominance of proprietary software and paved the way for a new era of software development and distribution.