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Retail software is
computer software Software consists of computer programs that instruct the Execution (computing), execution of a computer. Software also includes design documents and specifications. The history of software is closely tied to the development of digital comput ...
, typically installed on PC-type computers post 2005, delivered via the Internet (also known as cloud-based). Traditionally this software was delivered via physical
data storage Data storage is the recording (storing) of information (data) in a storage medium. Handwriting, phonographic recording, magnetic tape, and optical discs are all examples of storage media. Biological molecules such as RNA and DNA are con ...
media sold to
end consumer A consumer is a person or a group who intends to order, or use purchased goods, products, or Service (economics), services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or busi ...
but very few companies still provide their software using physical media. The software is typically sold under restricted licenses (e.g. EULAs) or in the case of cloud-based software sold as a Software-as-a-Service (SaaS) model.


Types

Cloud-based software: this is software that is not installed on a user's device but delivered on-demand via the Internet to the end user's device(s) either through web-based apps or native apps ( iOS and Android). Most new software companies provide both or a combination of web, and native apps which may provide different functionality depending on the actual user in a client company. OEM Pack — This is a licensed copy of software given by the software manufacturer to a computer manufacturer to pre-install on a computer being sold to a customer. A backup copy may or may not be provided on a CD to the end-user along with the computer. Box Pack - This is a licensed copy of the software that an end-user buys off the shelf from any authorized retail outlet. They may sometimes be more highly-priced than OEM versions as you generally get additional software along with the main software within the pack. Paper License - This is a scheme provided by the software manufacturer to companies or businesses that require many copies of particular software to be installed on multiple computers within the organization ( Volume license key). Say, for example, a company requires installing software on 50 computers in its office. Instead of buying 50 CDs and managing those 50 individually, the company can buy one copy of the software and request the software vendor to issue a paper license authorizing them to use it on 50 computers. The software vendor then charges them accordingly. This method is also much cheaper than buying 50 individual packs.


History

An important historical event that led to the expansion of the market for retail software was the Open Letter to Hobbyists by
Bill Gates William Henry Gates III (born October 28, 1955) is an American businessman and philanthropist. A pioneer of the microcomputer revolution of the 1970s and 1980s, he co-founded the software company Microsoft in 1975 with his childhood friend ...
in 1976. Until the 2000s with the emergence of the
Internet The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
, retail software represented the vast majority of all end consumer software used and was referred to as shrinkware because of software almost always ships in a shrinkwrapped box. The most famous examples of retail software are the products offered on the
IBM PC The IBM Personal Computer (model 5150, commonly known as the IBM PC) is the first microcomputer released in the List of IBM Personal Computer models, IBM PC model line and the basis for the IBM PC compatible ''de facto'' standard. Released on ...
and clones in the 1980s and 1990s, including famous programs like Lotus 123, Word Perfect and the various parts that make up Microsoft Office.
Microsoft Windows Windows is a Product lining, product line of Proprietary software, proprietary graphical user interface, graphical operating systems developed and marketed by Microsoft. It is grouped into families and subfamilies that cater to particular sec ...
is also shrinkware, but is most often pre-installed on the computer. The rise of the
Internet The Internet (or internet) is the Global network, global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a internetworking, network of networks ...
and software licensing schemes has dramatically changed the retail software market e.g. by Digital Distribution. Users are capable of finding shareware, freeware and
free software Free software, libre software, libreware sometimes known as freedom-respecting software is computer software distributed open-source license, under terms that allow users to run the software for any purpose as well as to study, change, distribut ...
products or use Web services as easily as retail. Producers of proprietary software have shifted to providing much of their software and services via the Internet, including
Google Google LLC (, ) is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial ...
,
Microsoft Microsoft Corporation is an American multinational corporation and technology company, technology conglomerate headquartered in Redmond, Washington. Founded in 1975, the company became influential in the History of personal computers#The ear ...
,
Yahoo! Yahoo (, styled yahoo''!'' in its logo) is an American web portal that provides the search engine Yahoo Search and related services including My Yahoo, Yahoo Mail, Yahoo News, Yahoo Finance, Yahoo Sports, y!entertainment, yahoo!life, and its a ...
, and Apple Inc. Software is also becoming available as part of an integrated device, as well. In 2011 Apple declared the discontinuation of many of its boxed retail software products.Apple initiates mass discontinuation of boxed retail software
on appleinsider.com (July 20, 2011)


See also

*
Proprietary software Proprietary software is computer software, software that grants its creator, publisher, or other rightsholder or rightsholder partner a legal monopoly by modern copyright and intellectual property law to exclude the recipient from freely sharing t ...


References

{{software distribution Software distribution Service retailing