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Transforming Software Development and its Monetization: Part 2

February 21, 2013

As I stated in part one of this article, 2013 will be a pivotal year, bringing dynamic change to the world of independent software developers (ISDs) seeking to monetize their innovations. This is thanks to a perfect storm of technology and market forces. 

I was fortunate to be able to discuss all of this with Alan Zeichick, Editorial Director at BZ Media’s SD Times and one of the community’s premiere experts. It was a content-rich experience to say the least, and that is why his insights dictated this two-part approach. Last time, the discussion was about mobility, and the focus here is on how the cloud is reshaping how software is disseminated, the changing nature of how it is monetized and the solutions in place to help ISDs do what they do best (i.e., produce great software).

The skies are likely to be cloudy all day

At a very high level, Zeichick said something that really resonated when he noted that, “I am a big believer to trust someone with expertise.” For those of us of a certain age, it is a reminder of the old Kentucky Fried Chicken commercial that stated, “We do chicken right!” Reality is that ISDs rightfully want to spend most of their time doing what they do best and are trusted for. They would prefer not to – and should not have to – spend their precious time worrying about business operations. That is how the cloud literally is changing “E”verything. 

From an operational standpoint, Zeichick cannot over-emphasize why the cloud has been a game-changer for ISDs. “For an ISD, moving benefits of outsourcing the infrastructure, and moving all of the stuff from CapEx to OpEx is compelling,” he stated.

Zeichick says that letting the experts (e.g., cloud services providers) do their thing allows ISDs to:

• Better understand their costs
• Not have to worry about managing people, processes, updates and upgrades
• Handle spikes in business activities

Plus he adds, “The cloud has replaced the complexity of the channel and allows you to ship your bits yourself.” In addition, ISDs are no longer at the mercy of long logistics chains and have the flexibility of being able to change to providers whom they can trust with low cost and not a lot of hassle. As Zeichick says, another big advantage is that, “It makes the notion of hosting very inexpensive to try.”

In short, the cloud allows ISDs to get control over their expenses. And, when it comes to the monetization of their creative efforts, moving to cloud-based monetization and software licensing solutions, such as those offered by SafeNet, not only lets the cloud “do the computational and logistical heavy lifting,” as Zeichick says – but it also provides the business intelligence needed to be responsive and opportunistic to changing market conditions. 

In fact, this is a case where the bottom line really is the bottom line. Cloud-based solutions, from using infrastructure as a service to delivering products to enabling a real-time understanding of costs and revenue, is transforming how ISDs go to market, are fast in the market and can stand out as best in market. The monetization piece should not be over-looked or under-appreciated. As Zeichick advocates, letting an expert handle what they know best while you concentrate on what you do best – with improved visibility, control and access to actionable insights – is why, in 2013, ISDs, particularly the vast majority who are small businesses, are going to be looking to the cloud to help them succeed.

Edited by Brooke Neuman

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