🔄 The business model for updates

In the old'n days, a project was shipped and done, and we moved on to the next one.

However, with modern connected systems, we can deliver a lot of value after the initial release. Most of our engineering effort may be spent after the initial release maintaining and improving a product. How do we fund this? Some ideas:

• Build the cost into the product up front (many consumer products use this model)
• Pay for maintenance with new sales (be careful this is not a pyramid scheme)
• Monthly/yearly subscription fees (might include a cloud service)
• Fees for add-on features (high-end test equipment like oscilloscopes often use this model)
• Pay for every update (hard to get customer buy-in)

The biggest mistake is not to plan for maintenance costs, or to surprise your customers with them. Be up front with the costs, but be more up front by communicating the value that you are continuously delivering.