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65-412: Rather than selling products individually, a subscription offers periodic (daily, weekly, bi-weekly, monthly, semi-annual, yearly/annual, or seasonal) use or access to a product or service , or, in the case of performance-oriented organizations such as opera companies , tickets to the entire run of some set number of (e.g., five to fifteen) scheduled performances for a whole season. Thus, a one-time sale of

130-401: A boxed version of Apple 's Mac OS X Public Beta operating system was released. Between September 2005 and May 2006, Microsoft released community technology preview s ( CTP s) for Windows Vista . From 2009 to 2011, Minecraft was in public beta. In February 2005, ZDNet published an article about the phenomenon of a beta version often staying for years and being used as if it were at

195-537: A closed beta , or an open beta ; closed beta versions are released to a restricted group of individuals for a user test by invitation, while open beta testers are from a larger group, or anyone interested. Private beta could be suitable for the software that is capable of delivering value but is not ready to be used by everyone either due to scaling issues, lack of documentation or still missing vital features. The testers report any bugs that they find, and sometimes suggest additional features they think should be available in

260-438: A feature freeze , indicating that no more features will be added to the software. At this time, the software is said to be feature-complete . A beta test is carried out following acceptance testing at the supplier's site (the alpha test) and immediately before the general release of the software as a product. A feature-complete (FC) version of a piece of software has all of its planned or primary features implemented but

325-403: A preview , preview release , prototype , technical preview or technology preview ( TP ), or early access . Beta testers are people who actively report issues with beta software. They are usually customers or representatives of prospective customers of the organization that develops the software. Beta testers tend to volunteer their services free of charge but often receive versions of

390-489: A restaurant provides a physical good (the food ), but also provides services in the form of ambience, the setting and clearing of the table, etc. And although some utilities actually deliver physical goods — like water utilities that deliver water — utilities are usually treated as services. The following is a list of service industries, grouped into sectors. Parenthetical notations indicate how specific occupations and organizations can be regarded as service industries to

455-467: A beta version to the users is called beta release and is typically the first time that the software is available outside of the organization that developed it. Software beta releases can be either open or closed , depending on whether they are openly available or only available to a limited audience. Beta version software is often useful for demonstrations and previews within an organization and to prospective customers. Some developers refer to this stage as

520-648: A paid subscription model is being favoured by more publishers who see it as a comparatively stable income stream. In the field of academic publishing , the subscription business model means that articles of a specific journal or conference proceedings are only available to subscribers. Subscriptions are typically sold to universities and other higher education institutions and research institutes , though some academic publishers also sell individual subscriptions or access to individual articles. In contrast with other media such as newspapers , subscription fees to academic publishers generally do not go towards supporting

585-439: A perpetual licensing model to a subscription model, known as " software as a service ". This move has significant implications for sales and customer support organizations. Over time, the need to close large deals decreases, resulting in lower sales costs. However, the size of the customer support organization increases so that the paying customers stay happy. Consumers may find subscriptions convenient if they believe they will buy

650-422: A predictable and constant revenue stream from subscribed individuals for the duration of the subscriber's agreement. Not only does this greatly reduce uncertainty and the riskiness of the enterprise, but it often provides payment in advance (as with magazines, and concert tickets), while allowing customers to become greatly attached to using the service and, therefore, more likely to extend by signing an agreement for

715-678: A product can become a recurring sale and build brand loyalty . Industries that use this model include mail order book sales clubs and music sales clubs, private web mail providers, cable television , satellite television providers with pay television channels, providers with digital catalogs with downloadable music or eBooks, audiobooks, satellite radio , telephone companies , mobile network operators , internet providers, software publishers , websites (e.g., blogging websites), business solutions providers, financial firms, health clubs , lawn mowing and snowplowing services, pharmaceuticals , renting an apartment, property taxes, as well as

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780-402: A product regularly and might save money. The customer saves time for repeated delivery of the product or service. Subscriptions which exist to support clubs and organizations call their subscribers "members" and they are given access to a group with similar interests. Subscription pricing can make it easier to pay for expensive items since they can often be paid for over time and thus can make

845-574: A psychological phenomenon may occur when a customer renews a subscription, that may not occur during a one-time transaction: if the buyer is not satisfied with the service, he/she can leave the subscription to expire and find another seller. Because customers may only need or want some of the items received, this can lead to waste and an adverse effect on the environment, depending on the products. Greater volumes of production, greater energy and natural resource consumption , and subsequently greater disposal costs are incurred. Subscription models also create

910-418: A service remains disputed. The perspective in the late-eighteenth and early-nineteenth centuries focused on creation and possession of wealth. Classical economists contended that goods were objects of value over which ownership rights could be established and exchanged. Ownership implied tangible possession of an object that had been acquired through purchase, barter or gift from the producer or previous owner and

975-428: A single purchase. In addition, subscription models increase the possibility of vendor lock-in , which can have fatally business-critical implications for a customer if its business depends on the availability of software: For example, without an online connection to a licensing server to verify the licensing status every once in a while, a software under a subscription-model would typically stop functioning or fall back to

1040-462: A software product is available for purchase, depending, however, on language, region, and electronic vs. media availability. Commercialization activities could include security and compliance tests, as well as localization and worldwide availability. The time between RTM and GA can take from days to months before a generally available release can be declared, due to the time needed to complete all commercialization activities required by GA. At this stage,

1105-428: Is a sequence of behaviors followed by those involved, including the client(s). Some service dramas are tightly scripted, others are more ad lib . Role congruence occurs when each actor follows a script that harmonizes with the roles played by the other actors. In some service industries, especially health care, dispute resolution and social services, a popular concept is the idea of the caseload, which refers to

1170-461: Is an act or use for which a consumer , company , or government is willing to pay . Examples include work done by barbers, doctors, lawyers, mechanics, banks, insurance companies, and so on. Public services are those that society (nation state, fiscal union or region) as a whole pays for. Using resources , skill, ingenuity, and experience, service provider's benefit service consumers. Services may be defined as intangible acts or performances whereby

1235-412: Is called code complete when the development team agrees that no entirely new source code will be added to this release. There could still be source code changes to fix defects, changes to documentation and data files, and peripheral code for test cases or utilities. Beta testers, if privately selected, will often be credited for using the release candidate as though it were a finished product. Beta testing

1300-740: Is conducted in a client's or customer's location and to test the software from a user's perspective. Also called production release , the stable release is the last release candidate ( RC ) which has passed all stages of verification and tests. Any known remaining bugs are considered acceptable. This release goes to production . Some software products (e.g. Linux distributions like Debian ) also have long-term support ( LTS ) releases which are based on full releases that have already been tried and tested and receive only security updates. This allows developers to allocate more time toward product development instead of updating code or finding and fixing newly introduced bugs due to outdated assumptions about

1365-419: Is focused on reducing impacts on users and may include usability testing. After beta testing, the software may go through one or more release candidate phases, in which it is refined and tested further, before the final version is released. Some software, particularly in the internet and technology industries, is released in a perpetual beta state, meaning that it is continuously being updated and improved, and

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1430-431: Is important to have full access even to old files for decades). Also, consumers may find repeated payments to be onerous. Subscription models often require or allow the business to gather substantial amounts of information from the customer (such as magazine mailing lists), and this raises issues of privacy . A subscription model may benefit the software buyer if it forces the supplier to improve its product. Accordingly,

1495-424: Is limited to paying subscribers. In addition to the freemium model, other subscription pricing variations are gaining traction. For instance, the tiered pricing model is frequently used in software as a service (SaaS) platforms, offering customers different access levels and features based on their subscription tier. This model is particularly effective for tailoring services to customer requirements. Another approach

1560-484: Is necessary to create enduring business relationships. Any service can be clearly and completely, consistently and concisely specified by means of standard attributes that conform to the MECE principle (Mutually Exclusive, Collectively Exhaustive). The delivery of a service typically involves six factors: The service encounter is defined as all activities involved in the service delivery process. Some service managers use

1625-586: Is never considered to be a fully completed product. This approach allows for a more agile development process and enables the software to be released and used by users earlier in the development cycle. Pre-alpha refers to all activities performed during the software project before formal testing. These activities can include requirements analysis , software design , software development , and unit testing . In typical open source development, there are several types of pre-alpha versions. Milestone versions include specific sets of functions and are released as soon as

1690-408: Is not manifested in a physical object that is independent of the provider. The service consumer is also inseparable from service delivery. Examples: The service consumer must sit in the hairdresser's chair, or in the airplane seat. Correspondingly, the hairdresser or the pilot must be in the shop or plane, respectively, to deliver the service. Each service is unique. It can never be exactly repeated as

1755-452: Is not yet final due to bugs , performance or stability issues. This occurs at the end of alpha testing in development . Usually, feature-complete software still has to undergo beta testing and bug fixing , as well as performance or stability enhancement before it can go to release candidate , and finally gold status. Beta, named after the second letter of the Greek alphabet , is

1820-446: Is sold as part of a bundle in a related computer hardware sale and typically where the software and related hardware is ultimately to be available and sold on mass/public basis at retail stores to indicate that the software has met a defined quality level and is ready for mass retail distribution. RTM could also mean in other contexts that the software has been delivered or released to a client or customer for installation or distribution to

1885-493: Is the usage-based pricing model, which calculates charges based on the extent of service or product utilization by the customer. This model is becoming increasingly prevalent, especially in services where customer usage varies significantly. There are different categories of subscriptions: In publishing, the subscription model typically involves a paywall , paysite , or other "toll-access" system (named in opposition to open access ). As revenues from digital advertising diminish,

1950-409: Is typically the final build of a piece of software in the beta stages for developers. Typically, for iOS , it is the final build before a major release, however, there have been a few exceptions. RTM is typically used in certain retail mass-production software contexts—as opposed to a specialized software production or project in a commercial or government production and distribution—where the software

2015-571: The 32-bit editions of Windows XP and two service packs for the 64-bit editions. Such service releases contain a collection of updates, fixes, and enhancements, delivered in the form of a single installable package. They may also implement new features. Some software is released with the expectation of regular support. Classes of software that generally involve protracted support as the norm include anti-virus suites and massively multiplayer online games . Continuing with this Windows XP example, Microsoft did offer paid updates for five more years after

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2080-425: The "alpha/beta" test terminology originated at IBM . Similar terminologies for IBM's software development were used by people involved with IBM from at least the 1950s (and probably earlier). "A" test was the verification of a new product before the public announcement. The "B" test was the verification before releasing the product to be manufactured. The "C" test was the final test before the general availability of

2145-458: The analyst knows who is an active customer and who recently churned. Additional benefits include a higher average customer lifetime value (ACLV) than that of nonrecurring business models, greater customer inertia and a more committed customer base as it transitions from purchase to opt-out decisions, and more potential for upselling and cross-selling other products or services. Some software companies such as Adobe and Autodesk have moved from

2210-492: The creation of the content: the scientific articles are written by scientists and reviewed by other scientists as part of their work duties. The publisher does not pay the paper authors and reviewers. In this light, the subscription model has been called undesirable by proponents of the open access movement. Academic publications that use the subscription model are called "closed-access" in opposition to their open-access counterparts. Businesses benefit because they are assured

2275-495: The end of extended support. This means that support ended on April 8, 2019. When software is no longer sold or supported, the product is said to have reached end-of-life, to be discontinued, retired, deprecated, abandoned, or obsolete, but user loyalty may continue its existence for some time, even long after its platform is obsolete—e.g., the Common Desktop Environment and Sinclair ZX Spectrum . After

2340-467: The end user to verify the integrity and authenticity of the software purchase. A copy of the RTM build known as the " gold master " or GM is sent for mass duplication or disc replication if applicable. The terminology is taken from the audio record-making industry, specifically the process of mastering . RTM precedes general availability (GA) when the product is released to the public. A golden master build (GM)

2405-422: The end-of-life date, the developer will usually not implement any new features, fix existing defects, bugs, or vulnerabilities (whether known before that date or not), or provide any support for the product. If the developer wishes, they may release the source code, so the platform will live again, and be maintained by volunteers, and if not, it may be reverse-engineered later when it becomes abandonware . Usage of

2470-407: The extent they provide an intangible service, as opposed to a tangible good. Software release life cycle The software release life cycle is the process of developing, testing, and distributing a software product (e.g., an operating system ). It typically consists of several stages, such as pre-alpha, alpha, beta, and release candidate, before the final version, or "gold", is released to

2535-464: The feature is complete. The alpha phase of the release life cycle is the first phase of software testing (alpha is the first letter of the Greek alphabet , used as the number 1). In this phase, developers generally test the software using white-box techniques . Additional validation is then performed using black-box or gray-box techniques, by another testing team. Moving to black-box testing inside

2600-611: The final version. Open betas serve the dual purpose of demonstrating a product to potential consumers, and testing among a wide user base is likely to bring to light obscure errors that a much smaller testing team might not find. A release candidate ( RC ), also known as gamma testing or "going silver", is a beta version with the potential to be a stable product, which is ready to release unless significant bugs emerge. In this stage of product stabilization, all product features have been designed, coded, and tested through one or more beta cycles with no known showstopper-class bugs. A release

2665-426: The functionality of a freemium version, thereby making it impossible (to continue) to use the software in remote places or particularly secure environments without internet access, after the vendor has stopped supporting the version or software, or even has gone out of business leaving the customer without a chance to renew the subscription and access his data or designs maintained with the software (in some businesses it

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2730-543: The next period close to when the current agreement expires. In an integrated software solution, for example, the subscription pricing structure is designed so that the revenue stream from the recurring subscriptions is considerably more significant than the revenue from simple one-time purchases. Some subscription schemes (like magazines) also increase sales by not allowing subscribers to accept or reject any specific issue. This reduces customer acquisition costs and allows personalized marketing or database marketing . However,

2795-408: The number of delivery sites (whether single or multiple) and the method of delivery to classify services in a 2 x 3 matrix. Then implications are that the convenience of receiving the service is the lowest when the customer has to come to the service and must use a single or specific outlet. Convenience increases (to a point) as the number of service points increase. The distinction between a good and

2860-408: The opposite effect. This can be illustrated by subscribing to a service for mowing lawns. The effective use of a single mower increases when mowing for a collection of homes; instead of every family owning a lawnmower that is not used as much as the service-providing mower, the use of resources for producing lawnmowers, therefore, decreases while lawns stay cut. Service (economics) A service

2925-542: The organization is known as alpha release . Alpha software is not thoroughly tested by the developer before it is released to customers. Alpha software may contain serious errors, and any resulting instability could cause crashes or data loss. Alpha software may not contain all of the features that are planned for the final version. In general, external availability of alpha software is uncommon for proprietary software , while open source software often has publicly available alpha versions. The alpha phase usually ends with

2990-445: The processes involved providing services are highly variable, as are the relationships between these processes, making it difficult to maintain consistent service quality. Many services involve variable human activity, rather than a precisely determined process; exceptions include utilities . The human factor is often the key success factor in service provision. Demand can vary by season , time of day, business cycle , etc. Consistency

3055-425: The product seem more affordable. On the other hand, most newspaper and magazine-type subscriptions are paid upfront, which may prevent some customers from subscribing. Fixed prices may be an advantage for consumers who frequently use those services. However, it could disadvantage a customer who plans to use the service frequently but later does not. The commitment to paying for a package may have been more expensive than

3120-490: The product they test, discounts on the release version, or other incentives. Some software is kept in so-called perpetual beta , where new features are continually added to the software without establishing a final "stable" release. As the Internet has facilitated the rapid and inexpensive distribution of software, companies have begun to take a looser approach to the use of the word beta . Developers may release either

3185-552: The product. As software became a significant part of IBM's offerings, the alpha test terminology was used to denote the pre-announcement test and the beta test was used to show product readiness for general availability. Martin Belsky, a manager on some of IBM's earlier software projects claimed to have invented the terminology. IBM dropped the alpha/beta terminology during the 1960s, but by then it had received fairly wide notice. The usage of "beta test" to refer to testing done by customers

3250-519: The production level. It noted that Gmail and Google News , for example, had been in beta for a long time although widely used; Google News left beta in January 2006, followed by Google Apps (now named Google Workspace ), including Gmail, in July 2009. Since the introduction of Windows 8 , Microsoft has called pre-release software a preview rather than beta . All pre-release builds released through

3315-412: The public. Pre-alpha refers to the early stages of development, when the software is still being designed and built. Alpha testing is the first phase of formal testing, during which the software is tested internally using white-box techniques . Beta testing is the next phase, in which the software is tested by a larger group of users, typically outside of the organization that developed it. The beta phase

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3380-474: The related hardware end user computers or machines. The term does not define the delivery mechanism or volume; it only states that the quality is sufficient for mass distribution. The deliverable from the engineering organization is frequently in the form of a golden master media used for duplication or to produce the image for the web. General availability ( GA ) is the marketing stage at which all necessary commercialization activities have been completed and

3445-423: The service provider provides value to the customer. Services have three key characteristics: Services are by definition intangible. They are not manufactured, transported or stocked. One cannot store services for future use. They are produced and consumed simultaneously. Services are perishable in two regards: The service provider must deliver the service at the exact time of service consumption. The service

3510-459: The software development phase following alpha. A beta phase generally begins when the software is feature-complete but likely to contain several known or unknown bugs. Software in the beta phase will generally have many more bugs in it than completed software and speed or performance issues, and may still cause crashes or data loss. The focus of beta testing is reducing impacts on users, often incorporating usability testing . The process of delivering

3575-662: The software has "gone live". Release to the Web ( RTW ) or Web release is a means of software delivery that utilizes the Internet for distribution. No physical media are produced in this type of release mechanism by the manufacturer. Web releases have become more common as Internet usage grew. During its supported lifetime, the software is sometimes subjected to service releases, patches or service packs , sometimes also called "interim releases" or "maintenance releases" (MR). For example, Microsoft released three major service packs for

3640-413: The system requires that the business have an accurate, reliable, and timely way to manage and track subscriptions. From a marketing-analyst perspective, the vendor has the added benefit of knowing the number of currently active members since a subscription typically involves a contractual agreement. This so-called 'contractual' setting facilitates customer relationship management to a large extent because

3705-419: The taxi service which transports the same service consumer from work to home – another point in time, the other direction, possibly another route, probably another taxi-driver and cab. Another and more common term for this is heterogeneity . Mass generation and delivery of services must be mastered for a service provider to expand. This can be seen as a problem of service quality . Both inputs and outputs to

3770-423: The term "moment of truth" to indicate that point in a service encounter where interactions are most intense. Many business theorists view service provision as a performance or act (sometimes humorously referred to as dramalurgy , perhaps in reference to dramaturgy ). The location of the service delivery is referred to as the stage and the objects that facilitate the service process are called props . A script

3835-461: The time of production and therefore did not contribute to wealth. Building on this theme, French economist Jean-Baptiste Say argued that production and consumption were inseparable in services, coining the term "immaterial products" to describe them. In the modern day, Gustofsson & Johnson describe a continuum with pure service on one terminal point and pure commodity good on the other. Most products fall between these two extremes. For example,

3900-414: The time, location, circumstances, conditions, current configurations and/or assigned resources are different for the next delivery, even if the same service is requested by the consumer. Many services are regarded as heterogeneous and are typically modified for each service-consumer or for each service-context. Example: The taxi service which transports the service consumer from home to work is different from

3965-472: The total number of patients, clients, litigants, or claimants for which a given employee is responsible. Employees must balance the needs of each individual case against the needs of all other current cases as well as their own needs. Under English law , if a service provider is induced to deliver services to a dishonest client by a deception, this is an offence under the Theft Act 1978 . Lovelock used

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4030-482: The traditional newspapers, magazines, and academic journals . Renewal of a subscription may be periodic and activated automatically so that the cost of a new period is automatically paid for by a pre-authorized charge to a credit card or a checking account. A common variation of the model in online games and on websites is the freemium model, in which the first tier of content is free. Still, access to premium features (for example, game power-ups or article archives)

4095-418: The used system, language, or underlying libraries. Once released, the software is generally known as a "stable release". The formal term often depends on the method of release: physical media, online release, or a web application. The term "release to manufacturing" (RTM), also known as "going gold", is a term used when a software product is ready to be delivered. This build may be digitally signed, allowing

4160-444: Was legally identifiable as the property of the current owner. Adam Smith 's famous book, The Wealth of Nations , published in 1776 , distinguished between the outputs of what he termed "productive" and "unproductive" labor. The former, he stated, produced goods that could be stored after production and subsequently exchanged for money or other items of value. The latter, however useful or necessary, created services that perished at

4225-579: Was not done in IBM. Rather, IBM used the term "field test". Major public betas developed afterward, with early customers having purchased a "pioneer edition" of the WordVision word processor for the IBM PC for $ 49.95. In 1984, Stephen Manes wrote that "in a brilliant marketing coup, Bruce and James Program Publishers managed to get people to pay for the privilege of testing the product." In September 2000,

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