Who knew free would generate so much money?
Who would have thought developing mobile applications would become such a fine art? It’s no longer about creating an application just to get one out there and make money. It’s about giving the consumer something they feel adds value to their mobile experience.

So how is a developer supposed to create something meaningful without making the consumer feel cheated by spending money (or not), AND generate revenue? The answer: applications that are free.

Apps that follow the “freemium” model are one-third of the top-grossing iPhone apps, with 34 of the top 100 being free. Although the applications themselves are free, money is generated from in-app purchases, which Remco van den Elzen, cofounder of analytics firm Distimo, believes to represent about 30% of all iPhone App Store revenue.

To show the growth of applications using the freemium model, analytics firm App Annie said that at the end of October, 10 of the top 50 grossing iPhone apps had in-app purchasing options. That number grew to 20 by mid-November.

Gaming apps seem to fare best with this type of model because of monetized incentives to progress in the game. However, the key is to not have a consumer feel slighted during their experience if they decide to not spend money. — Katie Serignese

Deployment rising
I’m noticing that deployment is finally getting the attention it deserves from software tool companies. This is mostly because of data center operating systems, which seek to create the same deployment environment in every data center.

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