For software entrepreneurs, there is an epic struggle as to whether software is a service or a product. To the untrained user eye, it’s a product with the expectation of service.
I have a theory. Software applications are for all intents and purposes automated processes. They perform information “work” in much the same way a power saw simplifies cutting. That said, information changes, so the machinery has to change with it. Well, until software writes itself, you need a human to change the applications. If the application comes from a vendor, this is the service part.
So this introduces several challenges. You now have a software lifecycle that churns out bug fixes, patches, and feature updates. You may also face implementation needs such as integration, data migration, etc. that are unique to every customer.