Abstract：Free of charge has become the preferred strategy of disruptive innovation in the software industry,but how to profit from free software is still worth studying.Based on the case of 360,this paper analyzed basic characteristics,basic conditions and external environment of disruptive innovation in the software industry.The study finds that technical innovation creates the conditions for the innovation of business model,and the innovation of business model is necessary for the creation of value through technical innovation.Only with the combination of technology and business model can have a devastating effect.By comparing the success case with the failure case in the software industry,it proposed that structure attribute shall be coordinated with profit model in the software industry in addition to capturing the market
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