Information Technology Business Model Of The Organization

1435 Words May 17th, 2015 6 Pages
Information technology business model of the organization
The IT industry business models have changed a lot from past many decades, as compared to the traditional direct selling to providing a free platform and then drawing margin out of it. Historically, IT industry use to work on a model of direct selling, where the companies develop a software or hardware and either it is purchased by direct consumers or vendors, and or the same customers may undergo licensing or maintenance contract. One of the unique services started in that era was consulting, in which Accenture pioneered and still holds the best position in the market.
In the recent development of IT industry, companies have a very smart model which let them choose freely as per their needs or may use their service for free as well for the starting few months. Companies are offering open freeware, software, shareware and open systems so as to reach to the target audience and make them aware of the company and other offerings subtly. Such companies work on a business model of one time charge, one month trial and charge upon extension, free plus maintenance, one-off purchasing, subscription, advertisement, charge per utilization, on demand among others.
For example, Google gets most of its revenue from advertisement and not for selling of tis products or the search engine itself. Similarly, eBay and amazon works on a profit sharing or commission model for the display of the products of the vendor on their website. The…
Open Document