Shareware

Shareware refers to a software distribution model that allows users to try a program for free before deciding to purchase it. This model is designed to encourage users to evaluate the software's functionality and usability, often providing a fully functional version for a limited time or with certain features restricted. Users can usually download shareware from the internet, and it often includes prompts for payment or registration after a trial period.

The shareware approach offers advantages such as accessibility and the potential for widespread user feedback, helping developers refine their products. However, it can also raise questions about software piracy and ethical use, as some users may choose to use shareware indefinitely without payment.

Shareware has played a significant role in the evolution of software distribution, particularly during the rise of personal computing in the 1980s and 1990s. While it has decreased in prominence with the rise of subscription-based models and free-to-play games, shareware remains a notable part of the software landscape, often appealing to users seeking cost-effective solutions. Understanding shareware can help users navigate their software options more effectively and make informed decisions about the applications they choose to use.

Published in: 2021

By: Scott Zimmer, JD

Subject Terms

Shareware

Last reviewed: February 2017

Abstract

Shareware is a term that refers to a category of open-source computer software that is intended to be obtained by users at no cost. This is in contrast to the commercial model of software distribution in which the software creator sells copies of the software to every person who wishes to use it. The shareware approach to software distribution is often used by developers who feel that they have created a high quality piece of software, but lack the resources to market it.

Overview

Shareware is a topic with an interesting history, and one that traces the development of computer programming, software distribution, and the involvement of the Internet in both. Shareware can be challenging to explain to digital natives—those who were born after the advent of the Internet—because it originated during a time when most households did not own a computer, and even those personal computers that were being used were standalone workstations that were not connected to one another. As time passed and the Internet was born, connection speeds were so slow that it was not practical to distribute software online, since it could take hours to download even the smallest and simplest of programs. Instead, software was distributed on physical media such as floppy disks and even audio cassettes.

Software development as an industry was only just getting off the ground and had very little in the way of advertising infrastructure, so distributing programs was accomplished through informal networks of acquaintances and groups of computer enthusiasts, who would share with one another the software that they personally developed or came across. Many of these applications were games, yet others were programs that were designed to increase productivity by automating office tasks such as printing labels, storing names and addresses, and compressing files (Velkova, 2016).

The cooperative spirit that prevailed among the computing community at this time was the inspiration for the shareware distribution model. Those who developed programs and those who used them were all basically part of the same group, with little in the way of a major divide between the two. Some who wrote programs gave them away for free, leading to the use of the term “freeware.” Others took the approach that if people found their software beneficial then they were welcome to send the creator payment for it, but that these payments were not expressly required. This type of voluntary payment grew increasingly popular because it seemed to embody the spirit of the programmer as more concerned with designing useful, interesting, and even artful tools than with generating profit.

Because software users under this model were encouraged to share software with one another and follow the honor system when it came to payments, the term “shareware” was used to describe it. Some applications based upon this model have built-in donation reminders that pop up from time to time to remind the user to consider a donation; this has led some to label shareware as “donationware” or “nagware.”

Though broadband Internet has made it possible to transmit applications around the world in a matter of moments, the shareware model remains alive and well (Nan et al., 2016). The difference is that now, instead of being virtually the only option for software distribution, shareware is part of an entire ecosystem of widely varying models and methods. The open-source software movement, which encourages widespread access to the source code of applications as a means of improving their quality and security, stands alongside more traditional models of commercial distribution.

Under traditional approaches, developers keep their source code a closely guarded secret, and use it to compile executable applications either as downloadable files or on storage media such as CD-ROMs or DVDs. To prevent these files from being illegally copied and shared among friends, most companies make use of an authentication regime based on the use of serial numbers or software keys, which must be entered into the application at the time that it is installed, in order to unlock the application and allow it to function from that point onward. The key is generally either included with the physical media containing the application files, or transmitted to the purchaser via email in the case of software that is purchased online and then downloaded (Ahmadi & Marandi, 2014).

A number of issues are presented by this software validation system, the foremost being that it can be difficult or impossible to transfer software to another computer after it has been installed. This happens because when one enters a validation key, the software communicates with the software vendor to make sure that the key that was entered is valid and has not already been used. There is often no way for the system to tell if a valid key was legitimately obtained and is being used to install the software in a new, still legitimate, manner, thus forcing the user to purchase a second copy of the software. Many users object to this, and software companies and developers have responded with several alternative approaches that have the advantage of allowing users to preview the software before committing to a full purchase (Dowling & McGrath, 2015).

Alternative Distribution Methods. Some of the alternative distribution methods in use seek to combine the advantages of shareware with the capacity for monetization that comes with commercial distribution. A prime example of this trend is adware. Adware is basically like shareware in most respects. It can be downloaded and installed without cost, and can be shared with others without violating the law or the creator’s restrictions. The difference is that instead of asking for an optional payment to support the developer, adware generates revenue for the developer by displaying advertisements within the application while it is being used. In exchange for having their ads featured in this way, advertisers pay the software developer for each ad that is displayed. The user of the software is able to access most or all of the features of the application without having to pay anything, but must be willing to have the distraction that comes along with the ads that are displayed (Niculescu & Wu, 2014).

Not all users are willing to tolerate advertisements and either avoid using adware or seek to circumvent it by using the software in conjunction with an ad blocker, requiring other measures by developers. Some developers use a shareware distribution model but do not give users of the free, shareable version of the software access to all of the application’s advanced features. Access to these advanced functions requires the user to purchase the full version of the software, sometimes referred to as the premium version. This approach has been termed the freemium model of shareware to describe the difference between the free and premium versions of the application, and it has become quite popular, not least because many users do not really need the full version of the software and can get by just fine with the free version (Baird, 2016).

Shareware is further differentiated from “freeware” in that the shareware user has access to the source code, which can be modified for the user’s own purposes. Freeware usually refers to applications aimed at less sophisticated users who have no ability to customize the source code and are not given access to it.

Issues

Negative views of shareware are based on the assumption that shareware does not meet the same high standards of quality as do applications produced by large software development firms, which have whole departments devoted to quality control, testing, and debugging. While this bias is understandable, it is not always justified. Shareware is like any other type of product—some of those who develop it are committed to doing their best, while others may not be. It is fair to say that most shareware does not approach the level of complexity of commercially developed software, which can have hundreds or even thousands of programmers working on it over the course of many years.

Some view the small-scale simplicity of shareware as an advantage, because if there is ever a problem with an application or if a user wishes to request a modification in the shareware, it can be easier to reach out to the lone person who developed it than it would be to try to communicate with any influential person in a large software company. Because those who distribute shareware are sometimes more interested in creating applications that function well than they are in being compensated for their time and expertise, they will often respond to requests for customization by agreeing to make the changes out of curiosity and a sense of personal satisfaction (Kamp, 2014).

Others’ skepticism about shareware is based on suspicion of almost any kind of product that is given away for free. People assume that if software is being distributed at no cost, then it must have something wrong with it, because if it had real value then the person who made it would try to capitalize on it. This attitude tends to arise in capitalist economies, which emphasize the importance of profit over most other considerations.

There are also fears that the developers of shareware may have ulterior motives, with the most common assumption being that the shareware application may contain a virus or other malicious program, called “malware,” that will damage one’s computer or allow it to be taken over by another person. While this is technically possible, it is highly unlikely. Most malicious software is distributed online as a downloadable application, because this is much easier than trying to create a seemingly useful application and then hiding a malicious one inside it—a so-called Trojan Horse. These applications can be hidden inside online advertisements and then triggered when a user clicks on the ad, causing the malware to be downloaded to the user’s computer. It is much more likely that users will click on seemingly innocent images and advertisements and become infected with a computer virus, than that they will pick one up by installing shareware (Corbly, 2014).

Presumably, people fear shareware more because they begin with a skeptical attitude toward anything that is free. Not surprisingly, these sentiments are more common among users who have lower levels of familiarity with technology. As a person’s comfort with computers increases, so too does that person’s willingness to give shareware applications a try. This is one of the reasons that shareware has acquired a reputation for being somewhat experimental and for being a resource that only sophisticated computer users have interest in. This is somewhat unfortunate, as many other people could potentially benefit from the convenience and affordability of shareware, if they had a clearer understanding of what it is and why it exists (Aldea & Olariu, 2014).

Terms & Concepts

Adware: Adware is similar to shareware in the fact that users are not charged to receive a copy of the application, but they are forced to view advertisements in order to use the software. The software developer receives compensation from the advertiser in exchange for including the ads in this way.

Donationware: Donationware is software that is distributed free of charge and free of advertisements. Instead, the software will periodically interrupt the user’s work to point out that the software’s only funding source comes from people who find it useful and donate money to the developer of the software. Often, this notification will include information about how to make such a contribution. Some donationware allows the user to choose to turn off the donation reminders temporarily or permanently, while in other cases the notification can be prevented only by making a donation.

Freemium: A freemium is an advanced feature of an application that can be unlocked only when the user pays a fee to the developer. The basic version of the software is distributed at no charge, but is missing one or more advanced features that must be paid for. This encourages users to try out the application, but also gives them a reason to financially support the developer if they find the software useful.

License Key: A license key is a string of numbers, letters, or other symbols that is used to validate software as having been obtained legitimately rather than through software piracy. A customer purchases the software from the developer, and during or after this transaction the developer conveys to the customer a copy of the license key. The customer installs the software and then enters the license key into the software. If a valid key is not entered, then the software’s functionality may be limited or it may cease to function altogether.

Malware: Malicious software that can be hidden inside online advertisements and then triggered when a user clicks on the ad, causing the malware to be downloaded to the user’s computer.

Source Code: The source code of an application is the set of instructions a programmer writes in a programming language, to tell the computer what actions to perform. Usually source code must be compiled into an executable application that a user can run. Software distributed as shareware generally includes only the executable application, and not the source code.

Bibliography

Ahmadi, S. D., and Marandi, S. S. (2014). Social software in the classroom: The case of wikis for scaffolding. Procedia—Social and Behavioral Sciences, 98, 100–108.

Aldea, C. C., and Olariu, C. (2014). Selecting the optimal software solution under conditions of uncertainty. Procedia - Social And Behavioral Sciences, 109, 333–337.

Baird, A., Miller, C. J., Raghu, T. S., and Sinha, R. K. (2016). Product line extension in consumer software markets in the presence of free alternatives. Information Systems Research, 27(2), 282. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=116255685&site=ehost-live

Corbly, J. E. (2014). The free software alternative: Freeware, open-source software, and libraries. Information Technology & Libraries, 33(3), 65–75. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=98603029&site=ehost-live

Dowling, P., and McGrath, K. (2015). Using free and open source tools to manage software quality. Communications of the ACM, 58(7), 51–55. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=103433403&site=ehost-live

Kamp, P. (2014). Quality of software costs money—Heartbleed was free. Communications of the ACM, 57(8), 49–51. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=97330970&site=ehost-live

Nan, G., Shi, F., Dou, R., and Li, M. (2016). Duopoly pricing of software products under free strategy: Limited-feature vs. seeding. Computers & Industrial Engineering, 100, 13–23. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=118076129&site=ehost-live

Niculescu, M. F., and Wu, D. J. (2014). Economics of free under perpetual licensing: Implications for the software industry. Information Systems Research, 25(1), 173–199. Retrieved October 23, 2016, from EBSCO Online Database Business Source Ultimate. http://search.ebscohost.com/login.aspx?direct=true&db=bsu&AN=99537914&site=ehost-live

Velkova, J. (2016). Free software beyond radical politics: Negotiations of creative and craft autonomy in digital visual media production. Media & Communication, 4(4), 43.

Shareware

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Subject Terms

Shareware

Abstract

Overview

Issues

Terms & Concepts

Bibliography

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