Incentives to produce high quality, inexpensive software: * availability of non-software alternatives, particularly in smaller scale businesses * importance of reputation Incentives to produce low quality software: * training/support revenue often easier to collect than software usage revenues * see speed-to-market factors Incentives to get software quickly to market: * brand allegiance in software is compounded by need to modify old documents * network effect for a lot of software makes software much more valuable as more people use it Incentives to create small, reusable components: * allows greater agility in producing customized software Incentives to create highly complex architectures: * bundling lets you sell a bunch of products on the merit of one Other unique market factors for software: * software benefits can be highly intangible and difficult to measure * software project durations are hard to predict * software has extremely low replication costs ---- CategorySoftwareDevelopment