Software Monetization Featured Article

Gemalto Introduces Software Monetization ROI Calculator

March 20, 2017

Have you ever wondered how much money you could save by implementing a software licensing and entitlement management system? Software license and entitlement management solutions are designed to simplify many of the time-intensive tasks associated with software entitlement. As a first step associated with monetizing the process, it’s important to understand what it is:

  • License management ensures the quantity and types of licensed software deliverables are what the customer ordered for which the ISV was paid.
  • Entitlement management ensures that software is configured and delivered in accordance with key provisions in the software license.

In a nutshell, license management keeps track of access quantity, and entitlement management controls what is available for access, according to Jim Geisman, founder of Software Pricing Partners, and replaces traditional “trust me” licensing, which is common to independent software vendors (ISVs) selling enterprise software solutions.

“When license and entitlement management replaces trust-me licensing, there is less revenue leakage, and therefore more revenue,” he wrote. “While license and entitlement management systems monetize what an ISV is paid for, they do not affect the basic Monetization Model. A Monetization Model increases revenues not by stopping revenue leakage, but by increasing the amount realized on every single unit sold.”

Entitlement management solutions allow enterprise software vendors to reduce operational cost, improve operation processes, empower channel partners, improve the end-user experience, and enjoy increased product visibility with:

  • A centralized license management interface for employees, customers, and partners;
  • A single, simple interface to all back- office systems and license generators; and
  • Advanced data collection and reporting features.

License and entitlement solutions provider Gemalto (formerly Safenet Sentinel) has introduced a ROI (return on investment) calculator to help software vendors determine where their spending is going and how using a smart software monetization solution can help save money in the long run.

The ROI calculator, which is located here, is simple and walks users through entering the right values in each field. The calculator will automatically adjust for immediate results, calculating both licensing and entitlement management costs as well as revenue potential from maintenance compliance and prevention of software piracy. Once all data are entered, the calculator delivers a three-year ROI analysis that can be updated and adjusted with new information as it becomes available. 

Edited by Alicia Young