Davido Digital Solutions

Software as a Product

Software is normally purchased directly or indirectly from either a computer manufacturer or a ‘Software house”.

A Software house is a company that specializes in producing software and related services.

When software is purchased for use on a particular computer, the purchaser obtains a copy of the program plus a number of other items of documentation.

Software may therefore refer to the various programs used in a computer system together with their associated documentation.

The purchaser of software usually pays for some or all of the following;

(a). Licence

The purchaser pays a Licence Fee, which gives him/her the right to use the software on a particular computer or a specified number of computers on a particular site.

Alternatively, a Site Licence may be paid, which entitles the purchaser to use the software on any computer at a particular space. Sometimes, the licence may specify the number of users that may use the software at any one time, and in case of a Single-user licence, the username must be registered.

Using software in breach of licence agreements is a serious offence for which the user may be sued for damages or subjected to criminal prosecution.

(b). Installation Guide

The guide provides information about what hardware is needed to enable the programs to run satisfactorily.

It tries to describe the procedures to be followed in order to set up the software, so that it can be used satisfactorily and efficiently on a particular kind of computer.

(c). Installation of the Software

If the purchaser is not an expert in setting up the software, he pays an additional fee to have the software installed.

(d). Maintenance Updates

Sometimes, faults called Bugs may light up sometime after the software has been delivered and put to use.

A good supplier will make every effort to correct bugs as and/or when they are discovered and will provide a new corrected version of the program containing the necessary “Bug fixes”.

The correction of bugs (i.e. maintenance) is often combined with enhancements to the software to make it better in some way. Enhancements normally involve increased “functionality”, i.e. making it work faster.

Licensed purchasers may get some of these changes provided free of charge, perhaps during the 1st year of use. Subsequently, the purchaser may be required to pay an annual fee for maintenance and updates.

(e). User Guides

A User Guide is usually a manual provided for the end-user to enable him/her to learn how to use the software. Such guides usually use suitable examples to take the user through the stages of carrying out various tasks with the software.

(f). A Reference Manual


A reference manual is normally intended to be used by a user who already knows how to use the software, but who needs to be reminded about a particular point or who wants to obtain more detailed information about a particular reference.

(g). A Quick Reference Guide


This may be a single sheet or card, which the user may keep for help with common tasks carried out with the software.

(h). Training

The software supplier may provide training courses on how to use the software. Sometimes, some initial training is provided free as part of initial purchase.

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