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It still takes a lot of bandwidth to download some software, and a physical copy often makes re-installation much easier should it become necessary. Some software, such as many office suites, are huge and take quite a long time to download. On the other hand, it is cheaper for the publisher to offer and distribute downloadable software, and they don’t have to share revenue from sales with a brick and mortar retailer, so they have a stong incentive to push downloadable software. I’m not sure how the costs stacks up for SaaS, since that is a different delivery model.