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

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas. By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles. Mobility-as-a-Service Market Development According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021. Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price. The study identified a monthly subscription model as key to incr

Robocall Mitigation Solutions to Halt Criminal Threats

If you answer the phone and hear a recorded message instead of a live person, it's likely a robocall. A robocall is a phone call that uses a computerized autodialer to deliver a pre-recorded message. In 2020, the U.S. Federal Trade Commission (FTC) received 2.8 million consumer complaints about robocalls. Offering solutions to robocalling and associated fraudulent business practices, computerized mitigation platforms are an integral part of the solution. Platforms that are focused on actionable systems to disrupt unsolicited and potentially criminal phone calls help telecom service providers and industry regulators. Issues of whether one-size-fits-all developments are sufficient to be effective across the spectrum need to be addressed, and whether a single telecom network operator working unilaterally with a third-party platform could compromise desired or mandatory industry-wide standards. Robocall Mitigation Market Development According to the latest worldwide market study by Jun

Secure Digital Workspace Apps Enable the Future Enterprise

In early 2020, as the world responded to the COVID-19 pandemic disruption, many organizations were forced to rapidly transform their communications networks and IT infrastructure to support an unprecedented shift to remote work. Before the pandemic, approximately 38 percent of employees were remote full-time or had a flexible work arrangement where they split time between home and office locations. During the pandemic, the percentage of remote workers that CIOs had to support reached almost 72 percent. Future Enterprise Technology Market Development Enterprise leaders have been forced to adapt to a new state, shifting from traditional office-based operations to distributed workforce environments that must still provide the same level of connectivity, security, and efficiency across the organization. According to the latest worldwide market study by International Data Corporation (IDC), addressing connectivity across geographies and transforming networks to become more virtual and agile