What's determines software adoption rates?  And how do you accelerate these rates?

Many factors influence software adoption rates.  The economy is a
significant one, because many information technology purchases are
viewed as being optional and postponable when economic conditions are
poor.  Information technology budgets tend to be more flush when the
economy is good and corporate profits are high.

A second factor is the benefits of the software.  Are they
considerable or merely incremental?  Do they increase sales or merely
decrease costs? To what extent will they influence the adopting
organization's profits? Would it provide a significant competitive
advantage for the adopting firm?  Are important competitors installing
and using it to gain competitive advantage?

A third factor is the cost of the software.  Is it expensive?  Does it
provide a significant return on investment in less than a year.  Does
it have to work with other existing software and hardware in the
organization, and how hard is it to interface it to the existing
infrastructure when connections are required?

The fourth factor is the perceived risk.  If it is expensive, complex,
and difficult to install, and the benefits are not immediately obvious
or may not occur for a long time, then adoption rates are likely to be
slow.  Similarly, if it has not been used in the industry before,
uncertainty may exist about its applicability and likely benefits. 
Conversely, software that is inexpensive, easily installed, has clear
benefits, and is being used by other influential members of an
industry is likely to be adopted rapidly.  Are there adequately
trained personnel in the marketplace capable of implementing the
software, maintaining it, and training users regarding its use?
Software that is supported by large, financially robust companies that
have significant alliances with third parties to provide
implementation, support, and training services is typically viewed as
being less risky than software created by startups with limited size
and financial assets with few training, implementation, and
maintenance resources.

While macroeconomic factors are not typically subject to being
manipulated by a software company, the remaining factors are
significantly under the control of the software publisher.  Ensuring
that the product provides a significant benefit compared to
alternatives or compared to not using it at all is critical.  Making
that benefit available at an attractive cost so that the adopting
companies can generate the desired return on investment can facilitate
adoption.  Having the software be easy to install and use, either by
making it independent of other systems or providing a straightforward
way for integrating it into a firm's existing infrastructure, is very
important.  Seeking alliances with influential third-party consultants
and the like can also accelerate adoption.  Finally, identifying
influential companies and getting them to be early adopters of the
product can greatly accelerate penetration of specific industries and
can encourage risk-taking among other companies in different
industries.

Sincerely,

Wonko

Source: "Survey: Windows Server 2003 Adoption Will Be Slow" By Gregg
Keizer, TechWeb.com (March 31, 2003)
http://www.techweb.com/wire/26800840

---

Request for Answer Clarification by bophe-ga on 03 May 2005 00:51 PDT

This answer focuses on software adoption rates by organisations and
commercial enterprises.  I'm really interested in in-home adoption
rates amongst everyday people.  Why is it that the public adopt some
pieces of software and not others?  And why do some pieces of software
successfully get adopted when they don't even offer all the benefits
of their less successful rivals?

---

Clarification of Answer by wonko-ga on 07 May 2005 21:57 PDT

I think a lot of the same factors apply, although there are some
differences.  The importance of the software delivering important
benefits is still the number one factor that is going to drive
adoption.  Software that does something new and exciting is much more
likely to be adopted than a me to product.

Beyond that, the important thing is getting the word out about its
existence and usefulness.  Identifying tech savvy new users who will
publicize the benefits of the software is key.  Posting information
about the software on forums can attract initial users, along with
providing it through networks like www.download.com.

Another very important method for drawing attention to the software is
the media.  Press releases are a good start, but getting technology
writers like Walt Mossberg of the Wall Street Journal and Steven H.
Wildstrom of BusinessWeek magazine to describe a product in glowing
terms will greatly increase trial.  Online technology sites like
Slashdot.org and even lesser-known sites like www.9down.com can also
be considerable sources of traffic if they review software positively

Making the software available for free or with a free trial period
will promote adoption.  So will a relatively modest purchase price. 
Availability in retail stores as well as via the Internet also
increases adoption, particularly if salespeople and stores are
incentivized to promote the software through advertising and customer
interactions.

I apologize if my initial response was not as useful as you had hoped.
 I hope these ideas aid you in better understanding the home software
market.

Sincerely,

Wonko

After clarification, the answer was just what I was looking for.