Well, that's precisely how it works for some software. Try buying the Cisco AnyConnect client for example. http://www.cisco.com/cisco/web/support/model/tsd_software_an...

Yes, but there is no law that it has to be that way. That's just how Cisco chose to implement it.

And that's why we switched to OpenVPN

Is that not how many businesses and government purchase enterprise licenses of Microsoft software?

In addition to this it seems to be common to purchase one license with hardware and a second license for the same software (but potentially a different edition) from a dealer.

Absolutely. I've been trying to buy KMS license for MS Project for 10 users on a Terminal Server farm with 100 KMS licensed Office Professional users. It's been a month-long nightmare already. I've bought two cars within 2 hours each.

Difference is there are no 50 state laws requiring independent dealers to sell your wares.

I work for a company that resells microsoft software and that's pretty much what we do right now.

Is that how it works now? Microsoft store would equivalent of Telsa's showrooms and Frys,BestBuy,Walmart would be the dealerships.

Also don't forget there would be laws preventing anyone else from selling Microsoft products in the area, and Microsoft wouldn't be able to sell to you.

If imagine if cars were more like software.

Your car would get 1,000 miles per gallon but crash every two weeks.

shudders

this is basically ingram micro's entire software business.

Its moving in that direction... Msoft, Apple and Polaroid are all going the way of brick and mortar.

Polaroid?

I didn't realize app stores were brick and mortar.