Editing Network effect (section)

===Software===
The widely used computer [[software]] benefits from powerful network effects. The software-purchase characteristic is that it is easily influenced by the opinions of others, so the customer base of the software is the key to realizing a positive network effect. Although customers' motivation for choosing software is related to the product itself, media interaction and word-of-mouth recommendations from purchased customers can still increase the possibility of software being applied to other customers who have not purchased it, thereby resulting in network effects.<ref>{{Cite book|last=Kemper, Andreas.|url=https://www.worldcat.org/oclc/697300408|title=Valuation of network effects in software markets : a complex networks approach|date=2010|publisher=Physica|isbn=978-3-7908-2367-7|location=Heidelberg|oclc=697300408}}</ref>

In 2007 [[Apple Inc.|Apple]] released the [[iPhone]] followed by the [[App Store (iOS)|app store]]. Most iPhone apps rely heavily on the existence of strong network effects. This enables the software to grow in popularity very quickly and spread to a large userbase with very limited marketing needed. The [[Freemium]] business model has evolved to take advantage of these network effects by releasing a free version that will not limit the adoption or any users and then charge for premium features as the primary source of revenue. Furthermore, some software companies will launch free trial versions during the trial period to attract buyers and reduce their uncertainty. The duration of free time is related to the network effect. The more positive feedback the company received, the shorter the free trial time will be.<ref>{{Cite journal|last1=Cheng|first1=Hsing Kenneth|last2=Liu|first2=Yipeng|date=2012|title=Optimal Software Free Trial Strategy: The Impact of Network Externalities and Consumer Uncertainty|url=https://www.jstor.org/stable/23274435|journal=Information Systems Research|volume=23|issue=2|pages=488–504|doi=10.1287/isre.1110.0348|jstor=23274435|issn=1047-7047|access-date=2020-10-31|archive-date=2020-11-04|archive-url=https://web.archive.org/web/20201104175229/https://www.jstor.org/stable/23274435|url-status=live}}</ref>

Software companies (for example [[Adobe Inc.|Adobe]] or [[Autodesk]]) often give significant discounts to students.<ref>{{cite web |title=Educational access to Autodesk products |url=https://www.autodesk.com/education/edu-software/overview?sorting=featured&filters=individual |access-date=4 April 2022 |website=Autodesk.com |archive-date=5 April 2022 |archive-url=https://web.archive.org/web/20220405020217/https://www.autodesk.com/education/edu-software/overview?sorting=featured&filters=individual |url-status=live }}</ref> By doing so, they intentionally stimulate the network effect - as more students learn to use a particular piece of software, it becomes more viable for companies and employers to use it as well. And the more employers require a given skill, the higher the benefit that employees will receive from learning it. This creates a self-reinforcing cycle, further strengthening the network effect.