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Retail software is
computer software Software is a set of computer programs and associated documentation and data. This is in contrast to hardware, from which the system is built and which actually performs the work. At the lowest programming level, executable code consist ...
, typically installed on PC-type computers post 2005, delivered via the Internet (also known as
cloud In meteorology, a cloud is an aerosol consisting of a visible mass of miniature liquid droplets, frozen crystals, or other particles suspended in the atmosphere of a planetary body or similar space. Water or various other chemicals may ...
-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 consi ...
media sold to end consumer but very few companies still provide their software using physical media. The software is typically sold under restricted licenses (e.g.
EULA An end-user license agreement or EULA () is a legal contract between a software supplier and a customer or end-user, generally made available to the customer via a retailer acting as an intermediary. A EULA specifies in detail the rights and res ...
s) 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 iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc. exclusively for its hardware. It is the operating system that powers many of the company's mobile devices, including the iPhone; the term also include ...
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 -HOW 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 In software licensing, a volume licensing is the practice of selling a license authorizing one computer program to be used on a large number of computers or by a large number of users. Customers of such licensing schemes are typically business, ...
). 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 business magnate and philanthropist. He is a co-founder of Microsoft, along with his late childhood friend Paul Allen. During his career at Microsoft, Gates held the positions ...
in 1976. Until the 2000s with the emergence of the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...
, 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 IBM PC model line and the basis for the IBM PC compatible de facto standard. Released on August 12, 1981, it was created by a team ...
and clones in the 1980s and 1990s, including famous programs like
Lotus 123 Lotus 1-2-3 is a discontinued spreadsheet program from Lotus Software (later part of IBM). It was the first killer application of the IBM PC, was hugely popular in the 1980s, and significantly contributed to the success of IBM PC-compatible ...
, Word Perfect and the various parts that make up
Microsoft Office Microsoft Office, or simply Office, is the former name of a family of client software, server software, and services developed by Microsoft. It was first announced by Bill Gates on August 1, 1988, at COMDEX in Las Vegas. Initially a marketin ...
.
Microsoft Windows Windows is a group of several proprietary graphical operating system families developed and marketed by Microsoft. Each family caters to a certain sector of the computing industry. For example, Windows NT for consumers, Windows Server for ...
is also shrinkware, but is most often pre-installed on the computer. The rise of the
Internet The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...
and
software licensing A software license is a legal instrument (usually by way of contract law, with or without printed material) governing the use or redistribution of software. Under United States copyright law, all software is copyright protected, in both source c ...
schemes has dramatically changed the retail software market e.g. by
Digital Distribution Digital distribution, also referred to as content delivery, online distribution, or electronic software distribution, among others, is the delivery or distribution of digital media content such as audio, video, e-books, video games, and other s ...
. Users are capable of finding
shareware Shareware is a type of proprietary software that is initially shared by the owner for trial use at little or no cost. Often the software has limited functionality or incomplete documentation until the user sends payment to the software developer ...
,
freeware Freeware is software, most often proprietary, that is distributed at no monetary cost to the end user. There is no agreed-upon set of rights, license, or EULA that defines ''freeware'' unambiguously; every publisher defines its own rules for the ...
and
free software Free software or libre software is computer software distributed under terms that allow users to run the software for any purpose as well as to study, change, and distribute it and any adapted versions. Free software is a matter of liberty, n ...
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, multinational technology company focusing on Search Engine, search engine technology, online advertising, cloud computing, software, computer software, quantum computing, e-commerce, ar ...
,
Microsoft Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washi ...
,
Yahoo! Yahoo! (, styled yahoo''!'' in its logo) is an American web services provider. It is headquartered in Sunnyvale, California and operated by the namesake company Yahoo Inc., which is 90% owned by investment funds managed by Apollo Global Mana ...
, and
Apple Inc. Apple Inc. is an American multinational technology company headquartered in Cupertino, California, United States. Apple is the largest technology company by revenue (totaling in 2021) and, as of June 2022, is the world's biggest company ...
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 software that is deemed within the free and open-source software to be non-free because its creator, publisher, or other rightsholder or rightsholder partner exercises a legal monopoly afforded by modern copyright and i ...
*
List of proprietary software for Linux Linux is an open-source kernel and usually comes bundled with free and open-source software; however, proprietary software for Linux (software that isn't free and open-source) does exist and is available to end-users. Networking Web browsers ...


References

{{software distribution Software distribution Service retailing