Software isn't static nor does it exist on it's own. You're not paying for the current version. You're paying for support, security patches, and for the next versions to be written. In the case of software services, you're also paying for administration, active network security, networking, and hardware operations.
Software is a lot like art or literature. The creator needs to be able to live in order to continue creating. Otherwise updates, new versions, and new creations become highly irregular or utterly non-existent.
Profit extracted from companies over the cost of business exist because that is how all businesses function. Profit is literally the point of capitalism. Investment in companies would not happen without the promise of a return. Even the smallest of businesses would not be possible without profit.
For a non-tech example, eggs don't cost $3.99 per dozen to produce. Eggs are expensive because of an extremely high profit margin. Is it justified? Price gouging? Currently there is no hard rule that differentiates the two.
Whether or not there should be a profit percentage cap is an entirely different conversation and not unique to tech. Personally, I think there should be a maximum amount of profit expressed as a percentage of unit cost that should be legal. Further, I think that an equal percentage of the unit cost should always be applied to wage increases equally across the company for non-management roles. Management should be paid out of the extracted profit percentage.
Software is a lot like art or literature. The creator needs to be able to live in order to continue creating. Otherwise updates, new versions, and new creations become highly irregular or utterly non-existent.
Profit extracted from companies over the cost of business exist because that is how all businesses function. Profit is literally the point of capitalism. Investment in companies would not happen without the promise of a return. Even the smallest of businesses would not be possible without profit.
For a non-tech example, eggs don't cost $3.99 per dozen to produce. Eggs are expensive because of an extremely high profit margin. Is it justified? Price gouging? Currently there is no hard rule that differentiates the two.
Whether or not there should be a profit percentage cap is an entirely different conversation and not unique to tech. Personally, I think there should be a maximum amount of profit expressed as a percentage of unit cost that should be legal. Further, I think that an equal percentage of the unit cost should always be applied to wage increases equally across the company for non-management roles. Management should be paid out of the extracted profit percentage.