What is Software Monetization?
What Exactly Is Software Monetization?
You may not have heard of the term Software Monetization before or maybe you have but are unsure of what it means. Most likely you are already embracing software monetization but you refer to it as licensing.
For many software vendors, monetization simply means collecting revenue by selling rights to use the software that they developed and protecting their valuable code. In this case monetization challenges revolve around protecting the revenue stream and defending themselves from piracy, theft, reverse-engineering, and misuse of software. But, monetization goes beyond just protecting revenue and involves enabling and sustaining revenue growth. With the adoption of cloud computing, virtualization, advancements in mobile technology and greater end user expectations for a great experience are forcing companies to change the way that they engage with their end users. For example, today’s end users want to do business with companies that provide them flexible licensing models (such as pay-per-use, user-centric, subscription), and provide a great experience and service- anytime, anywhere. In the post-sale economy, the relationship with the end user doesn’t end when the order is placed. As a market leader, your customers expect to be delighted and they expect that their interactions with your company will be simpler, faster and more intimate.
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There is little doubt that the world of software monetization, from licensing to entitlement management is in the midst of a critical transformation. It impacts not only software companies and device manufacturers but now also end users as everything is software-centric.
It has become one of the major trends of our increasingly connected world. Hardware vendors are in the midst of transforming their businesses from shipping boxes to delivering value-added software and becoming applications and solution providers. The reason is simple. Hardware has become a low-margin commodity, and it has become apparent that the value of these hardware devices will be in the information they transmit. This is true in IoT deployments in particular, where it really is all about the data; real-time or for sophisticated analysis. The driver for this value transformation is in being able to create new services and strengthen relationships with customers.
Cloud, virtualization, mobility, and the Internet of Things (IoT) are causing disruptions and transformation. The most important aspect driving transportation is software and that's due to the flexibility software provides in defining features to differentiate products. Regardless of the vertical market but in particular, traditional hardware-based businesses, the next generation value is going to be created and sustained by the software.
We are all constantly getting information on how the advent of billions of connected devices is transforming daily life. In fact, Cisco has forecast there will be 50 billion connected devices by 2020, and Gartner is projecting over $300 billion in revenues, just for the suppliers of IoT devices. Within five years, estimates are that one million devices will be brought online every hour.
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Software Monetization eBooks
Featured Case Studies
- Apollo Communications Protects its Intellectual Property and Enforces Software Licensing with Gemalto Sentinel
- Cadac Group Cuts Operational Expenses & Gains Licensing Flexibility with Gemalto Sentinel
- Sentinel LDK Assures Revenue, Expands Licensing Flexibility, and Reduces System Management Costs for CAD Software Company
- Softing Industrial Automation Works with Gemalto Sentinel to Monetize the IoT
- Miko Maximizes Software Revenue & Reduces Operational Expenses with Gemalto Sentinel
- Xsens Technologies Streamlines Operations & Expands Revenue with Sentinel
- Structural Test and Monitoring Software Protected by Sentinel Integrated with NI LabVIEW
- Seize the IoT Opportunity
- Format International Replaces Inflexible Software Protection and Licensing Dongles with Sentinel LDK with EMS
- Envitrans Reduces Software Piracy & Expands Revenue with Sentinel LDK and Sentinel EMS Business Challenges
- Snell Protects Valuable IP and Streamlines Licensing Operations with Sentinel RMS & EMS
- Following Several Acquisitions, Sage Implements Sentinel RMS to Harmonize a Multitude of Disparate Licensing Systems- existing on site now
- With SafeNet Sentinel, AEOL Protects their Market-leading Training Software while Driving Back-office Efficiencies- existing on site now
Featured White Papers
- Frost & Sullivan - Penny Wise, Pound Foolish: The Fallacies of Choosing to Build vs Buy a Software Monetization System
- NEW! Frost & Sullivan - Competitive Analysis of the Software Licensing and Monetization Market
- NEW! IDC Cloud-Based Software Adoption Delivering Value to Customers
- Frost & Sullivan - Get Connected to Profit: Embracing Software Propels Growth in IoT Era
- More Variety with Less Cost: Using Software Features to Achieve Product Differentiation
- Monetizing the IoT: Show Me the Money: A Grey Heron white paper sponsored by Gemalto
- Cloud-Based Software Licensing - A THINKstrategies white paper: Enabling Operational Efficiency, Delighted Customers and Sustainable Competitiveness
- Consolidating Software Licensing Technologies Post M & A: A survival guide for software publishers & intelligent device manufacturers
- 5 Tips for Software Monetization in the IoT
- IDC Supporting Software Business Transformation with Systems Designed for the Task
- How to Achieve a Cloud-Connected Experience Using On-Premise Applications
- IDC Meeting Customer and Business Needs in a Changing Market
- NEW! Cloud-Based Software Licensing: Enabling Operational Efficiency, Delighted Customers and Sustainable Competitive Advantage
- NEW! Pricing Model Flexibility as a Competitive Advantage
- NEW! Monetizing IoT - Show me the Money
- NEW! Monetization Strategies and Technologies to Future-proof Your Business