Dwight Olson

The Long Journey to Software Valuation Dwight Olson

Prior to the 1980's, if you brought up the business of software in conversation, it wasn't long before the discussion got around to the subject of software as an asset. Most everyone agreed that the machine, the hardware, had tangible value. You could see it; you could hold it. Computer hardware had a physical presence. It was a three-dimensional entity. At that time, you could ask, who should care about the asset value of the thing called software? You can't see it; you can't hold it. So, what good is valuing it?

Well, software is the language of the computer. Software is used to express applications, programs, and other information on a computer. The internet is a communication channel made up of a huge amount of software. Software is the thinking or logical language that is used to express an idea and its function. Software is the creative tool for our imagination.

The monetary asset value and risks of software have been the subject of much discussion. How did we get to where the value of an idea expressed as software has value in terms of dollars?