Good advice. The pricing is critical, because it affects everything in the sales/delivery/operations cycle. Say the price is $50k for the software, $20 for in

Good advice. The pricing is critical, because it affects everything in the sales/delivery/operations cycle. Say the price is $50k for the software, $20 for installation, $7500 for maintenance. This type of sale is going to take a dedicated sales force and a sales cycle of 6 to 12 month with no income for a year. When I was in the business, sales and marketing were about 50% of revenues. Suppose instead you offer a hosted solution at $7500/year, which was your original subscription rate after the first year. Your burn rate is cut in half: smaller sales, marketing, and SE staffs. Way shorter sales cycle. Monthly payments after a month. No hassle supporting a gazillion os/database/custom solutions. This is the kind of solution that can grow organically.