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Software Monetization Featured Article

Software Monetization Solutions and Pricing Flexibility-Perfect Together

March 31, 2016

For creators of software, licensing and entitlement management of their intellectual property (IP), aka “Software Monetization”, along with its protection from abuse, is how they financially optimize their work.  However, optimization is now so much more than software sales, renewals, upgrades and compliance enforcement.  It is about finding the price “sweet spot” that compels users to want more. 


Whether you are an independent software vendor (ISV), or increasingly a hardware vendor transforming into a services company where premium value comes from software, how to price can be a real challenge. The objective is to optimize revenues and profits but to do so in the context of intense competition and the existence of increasingly knowledgeable and fickle customers who have access to options. It means being able to be flexible with your pricing to keep competitors at bay and customers delighted.  In two words, like the title of a recent hit movie, “It’s Complicated.”

 It may be complicated, but it does not have to be.  Profit maximization is about as mission critical as it gets but that does not mean it is mission unattainable or impossible.  

In fact, as the world moves away from physical media delivery of software that is paid for via perpetual licenses to network delivered (increasingly via the cloud) software that is subscription and usage-based, the role of licensing and entitlement management systems has become a key component in software monetization optimization.  The visibility new software monetization solutions provide across all “E”vironments—on who is using what, when, where, how and why—is invaluable. Insights gained enable the ability to devise packaging and pricing options which customers can and should find more than merely attractive. 

It should be noted that realities are that the shift from up-front licensing models to subscription or usage-based models is not an all-or-nothing proposition. It is an evolutionary process that is picking up steam.  The reasons are simple.   In order to best serve the diverse purchasing processes and buying needs of customers, sales processes based on insights gleaned from usage that are tailored to highlight choice and flexibility as competitive differentiators are vital for establishing a premium positioning. 

How to find that sweet spot is the topic of the webinar, Pricing Model Flexibility as a Competitive AdvantageTo be held Thursday, April 14, 2016, 1:00 PM EST/ 10:00 AM PST, you are invited to join me, Joshua Bloom, Partner, Simon-Kucher & Partners and Omkar Munipalle, Director of Strategy and Business Development, Cloud Monetization, Gemalto (News - Alert), for an in-depth look at the key decision points that help companies succeed in leveraging next generation software monetization solutions to implement optimized pricing capabilities. 

In an age where there is no alternative to making sure your pricing options fit rapidly changing customer demands and competitive realities, understanding how the value of state-of-the-art software monetization is something that can be key to current and future success. 




Edited by Maurice Nagle
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