Featured Article from Software Monetization
Leveraging the Cloud for a More Efficient and Effective Software Delivery and Monetization Model
It is hard to escape the reality that software is moving to the cloud. At first it was a novelty and available only for specialty uses. But, when resource-intensive software such as the Adobe (News - Alert) Creative Suite joins the cloud as software-as-service (SaaS), you know the floodgates have opened wide.
Forrester predicts the global cloud market size is expected to more than double from roughly $33 billion in 2012 to about $78 billion in 2015, according to a recent webinar, “Customer Usage and Insight paving the road to optimized cloud-based business models,” by Todd Steel, senior product manager for software monetization solutions provider, SafeNet.
With this shift comes a demand for new licensing schemes, Steel added.
Steel went on to point out that customers are demanding more flexibility in licensing and delivery, including buy-as-you-like, where the customer has a perpetual subscription; pay-as-you-like, where there is a fixed price for pay-per-use; deploy-as-you-like, an on-premise cloud option; and access-as-you-like, granting anywhere, anytime access.
Part of the shift toward SaaS offerings comes from the business preference to draw from operating expenses with a software subscription instead of having to get authorization for the capital expense of purchasing software all at once and regardless of whether it will be used or not.
The shift to cloud delivery also changes how companies develop software.
“Software companies need to become more flexible,” noted Steel, “and need a platform to support this.”
That means instead of something like an annual update cycle, developers need to constantly iterate their software and create a feedback loop. No longer can developers get customer insight from value-added resellers and roll those ideas into an annual release. With the cloud, software companies must get feedback straight from the customer and run continuous support, sales, development, innovation and licensing.
“The successful solutions in the cloud market in the future are not individual cloud products,” said Steel. “It is a battle of cloud ecosystems. It is successful software vendors teaming with good platforms with good infrastructure hosting vendors in order to provide an end solution to customers, which then needs to be built on very solid service-level agreements.”
But the challenge for all parties involved in the ecosystem is collecting insight directly from the customer, and that comes from having good business processes and good vendors that know how to gather information from customers and leverage that information in their part of the ecosystem.
One option software providers might want to consider as they adjust to the new SaaS reality is a service such as SafeNet’s Sentinel Cloud. Sentinel Cloud helps providers monetize their offerings in the cloud by providing flexible service catalogues, provisioning features, end-user service usage controls, and service usage measurement. In short, it enables a flexible, easy and cost-effective means for software companies to have peace of mind and increase their speed to market and IP monetization.
Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida. Stay in touch with everything happening at ITEXPO (News - Alert) (News - Alert). Follow us on Twitter.
Edited by Peter Bernstein
Monetizing IOT- Insights from Licensing Analysts
Featured Case Studies
- NEW! Cadac Group Cuts Operational Expenses & Gains Licensing Flexibility with Gemalto Sentinel
- NEW! Sentinel LDK Assures Revenue, Expands Licensing Flexibility, and Reduces System Management Costs for CAD Software Company
- NEW! Softing Industrial Automation Works with Gemalto Sentinel to Monetize the IoT
- NEW! Miko Maximizes Software Revenue & Reduces Operational Expenses with Gemalto Sentinel
- NEW! Xsens Technologies Streamlines Operations & Expands Revenue with Sentinel
- NEW! Structural Test and Monitoring Software Protected by Sentinel Integrated with NI LabVIEW
- NEW! Seize the IoT Opportunity
- NEW! Format International Replaces Inflexible Software Protection and Licensing Dongles with Sentinel LDK with EMS
- NEW! Envitrans Reduces Software Piracy & Expands Revenue with Sentinel LDK and Sentinel EMS Business Challenges
- NEW! 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
- NEW! Consolidating Software Licensing Technologies Post M & A: A survival guide for software publishers & intelligent device manufacturers
- NEW! 5 Tips for Software Monetization in the IoT
- NEW! Supporting Software Business Transformation with Systems Designed for the Task
- NEW! Penny Wise, Pound Foolish: The Fallacies of Choosing to Build a Software Monetization System
- License and Entitlement Management in the Era of the Internet of Things
- The Impact of Virtualization and The Cloud on Software Entitlements
- Understanding White Box Cryptography
- How to Achieve a Cloud-Connected Experience Using On-Premise Applications
- The Four Cornerstones of a Comprehensive Software Monetization Strategy
- Meeting Customer and Business Needs in a Changing Market
- Cloudy with a Chance of Insight: An ISV's Guide to Customer Usage Data Collection and Analysis in the Cloud