Skip to main content

Cloud and Software Subscriptions Transform the Market

Most CIOs would prefer to be freed from the ongoing burden and rising cost of managing software license compliance. It's one of the primary reasons why open source software subscriptions -- that don't require traditional licenses -- are so appealing. It's also a key driver of pay-as-you-go cloud service adoption.

Forward-looking software vendor executives also acknowledge the apparent shortcomings of the legacy licensing model. Some are choosing to change. Others are stubborn and continue to seek ways to extend the life of an obsolete approach to revenue attainment.

Demand for Short-Sighted Software Monetization

The three software license management (SLM) functions include defining software versions and licensing rules (development), automating license issuance and invoicing (deployment) and ensuring software is used in accordance with terms of a purchased license (enforcement).

The latest global market study by Frost and Sullivan discovered that market participants are gradually shifting away from business models based on traditional user- and site-based licensing policies to monetization models centered on the actual use of on-premises and cloud software.

In response to this trend, the SLM market earned slightly less than $300 million in 2013 and is expected to cultivate more than $425 million by 2018.

Across all key verticals -- desktop application software, embedded software within intelligent devices and cloud-based applications -- there remains scope for current and new vendors to find growth worldwide.

SLM solutions are gaining in popularity as they enable software vendors to efficiently monetize their products -- particularly for enterprise, networked, and cloud-based deployments. Unfortunately, they typically don't solve the root problem for end-customers -- CIOs and their Line of Business leaders.

While business-to-business (B2B) software publishers are the most mature users of software monetization technologies, intelligent device manufacturers are becoming a growing end-user segment.

"With the rise of the Internet of Things, embedded device vendors are actively embracing SLM technologies to limit counterfeiting on the production line, achieve dynamic adjustment of product stock keeping units (SKU) after deployment, and manage complex licensing models," said  Avni Rambhia, industry manager at Frost and Sullivan.

As SLM solutions become more user-friendly and compatible with new deployment models -- such as virtualization and mobile cloud computing -- they could attract other vendors to the field, but it's a market opportunity that's likely to be short in duration. Eventually, even the most inflexible software developers will migrate towards the subscription or pay-as-you-go business model.

Popular posts from this blog

Wireless Solutions Advance Work from Home Trends

Despite a challenging backdrop from the ongoing effects of the global COVID-19 pandemic, the negative impact on fifth-generation (5G) wireless supply chains has been minimal compared to the wider mobile smartphone market. This led to 5G mobile devices becoming more diverse, brought to market quickly at a variety of price points, thereby accelerating affordability and adoption. The mobile market is transitioning to 5G and many leading vendors are now exploring the low-priced 5G smartphone segment. According to the latest worldwide market study by ABI Research, 681 million 5G handsets will be shipped in 2022. Therefore, the race is on for OEMs to find that all-important level of differentiation in their flagship portfolios to help boost margins and improve market share. 5G Wireless Market Development Vendors continue to drive the adoption of new product designs, screen technology, chipsets, and camera setups -- notably within the flagship smartphone segment. Meanwhile, the leaders seek a

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of