Software needs to be priced on perceived value in the eyes of the customer. Irrespective of the actual cost of writing the software, or the actual functionality / utility in a business; it is the perceived value to the business that matters. In a world where there are multiple alternatives, something that a premium is paid for will probably be valued more than a low cost or free equivalent
Product strategy needs to integrate into the corporate strategy around acquisitive growth and leverage existing capabilities. The secret to good innovation is often that the execution needs to be flawless, and organisational structures need to support rapid commercialisation around new ideas. Customer led innovation as well as introducing complimentary products form part of the optimisation process, both have risks but have the potential to have transformational impact on existing product lines and ultimately the business.