Companies today will make new versions of their software solely to rake in profits. They add very little functionality, or they add functionality that most people won't use. Often this "upgrade treadmill" approach will try to force users to buy new versions. A new version of the software has a different format for saving files so that users with the older version of the software are forced to upgrade. Users should purchase newer versions of software for added functionality, not because they feel forced into doing it. People defend the upgrade treadmill saying that it is the main source for innovation, but programmers that are paid to find ways to "upgrade" Microsoft Office are not innovating. They are changing the look of Word, but it's the same program today as it was ten years ago. Innovation comes from the most unlikely sources. Did anyone expect Mark Zuckerberg to invent one of the most revolutionary social constructs ever when he started Facebook? The upgrade treadmill is a method used by large companies to make more money then they deserve; it is not the source of innovation.
More about the upgrade treadmill:
http://www.ibm.com/developerworks/web/library/wa-cranky44.html
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