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Featured Article from Software Monetization

Positioning to Fully Leverage the Software Subscription Market

January 06, 2016




The numerous predictions by industry experts in virtually every vertical market about the “Big” trends impacting how businesses will conduct themselves in 2016 are now public record.  Realities are that thanks to the accelerating pace of technology innovation and adoption, companies are going to be disrupted or disruptors. And, what is unmistakable is there are several trends that make everyone’s lists. Call them the usual suspects: mobility, cloud, virtualization, globalization and application proliferation.   There are two others that stand out as well where there is a consensus of opinion:

  • The pace at which the world is becoming software-centric is increasing exponentially. It is transforming even traditional hardware companies into software ones in terms of creating and sustaining competitive value.
  • Business models for how software is created, delivered, monitored, protected, packaged, updated and consumed are transforming as well with the Software as a Service (SaaS (News - Alert)) subscription model gaining significant momentum as software monetization (licensing and entitlement management) becomes a preferred way for the entire value-chain to be operationally efficient, responsive and effective. 

The first point is an outgrowth of an observation made by Netscape founder and serial entrepreneur Marc Andressen back in 2011 in a Wall Street Journal opinion piece, “Software is eating the world.” Needless-to-say he was more than a little prescient.  In fact, if anything he may have under-estimated just how fast and how far we would go in such a short period of time.

In addition, IDC (News - Alert) recently published its software and licensing predictions for 2016. The number one prediction is the following:

Software Subscription Revenue Will Continue Its Rapid Growth Trajectory to Reach $130 Billion in 2016, a 21 percent increase over 2015” – Amy Konary, IDC

Given the already sizable market for subscriptions and the projected growth, having a sound understanding in what is driving the market—who, what, where, why and how this market is moving and moving fast is something—and what your organization can learn from industry trends and successes.

What can be added is that the trajectory for what happens beyond 2016 is equally robust as more and more capabilities move to the cloud, particularly as virtually all applications development is now centered on being cloud-friendly.

A great way to get the knowledge you need about how the software subscription model is creating opportunities as well as challenges is by participating in the insightful webinar, “Subscriptions are Eating Software: Are you ready to tap into the $130B Software Subscription Market?”   To be held Wed., Jan. 13, 2016  at 1 p.m. EST. You are invited to join industry experts R “Ray” Wang, Principal Analyst, Founder, & Chairman, Constellation Research Inc., Shlomo Weiss, Senior Vice President, Software Monetization, Gemalto (News - Alert), Will Brouwer, Lead Operations NPI Project Manager, Viavi Solutions, and Chris Kocher, Founder and Managing Director, Grey Heron as they delve into market drivers and how to take advantage of one of the biggest trends transforming/disrupting markets around the world. 




Edited by Stefania Viscusi
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