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This is an extremely shallow analysis. Price discrimination has always been fundamental aspect of business and economics: companies often offer different "val
by payne92 10y ago
This is an extremely shallow analysis.
Price discrimination has always been fundamental aspect of business and economics: companies often offer different "values" different price points.
BUT, software businesses have another aspect many physical product & service companies do not: the ongoing cost of maintenance and support for legacy applications, and the (typically) increasing cost to add new features.
Consider the opening example: Microsoft Outlook. It's highly likely that Microsoft was motivated by cost issues, and was not executing a deliberate de-feature move.
- tensor 10y agoThey still have to maintain Outlook whether or not it's in the lower cost option. You could argue that they might save a tiny bit in support, but I'd be surprised if it was a relevant amount.
- payne92 10y agoI'm sure they are very interested in moving users to a newer platform. Legacy support is "all cost" -- you're typically not getting any revenue. Look how motivated Microsoft was to drop XP support.