Software Monetization Featured Article

Licensing Management Address New Challenges in Increasing Revenue and Assuring Business Continuity

August 20, 2018

In the on-demand economy, organizations continue to migrate to subscription and usage-based software solutions. That has prompted many hardware and software suppliers to rethink how they do business and adapt to this important new market reality. Those that don’t recognize this trend and move to address it may find themselves in the dust.

Of course, nobody ever said reinvention was easy. There are many challenges to changing the way a company delivers and manages its solutions, even if those offerings are already in the form of software (as opposed to hardware/software).

Among the big ones is managing and growing software sales and usage in a scalable way.

Most software suppliers already have a licensing process in place. But as they move to support subscription and/or usage-based licensing, licensing becomes more complex.

That’s in part because these businesses now have to regularly monitor how and to what extent their software is being used. That allows them to bill for it appropriately. If they don’t do this kind of license management, they lose control of their property. And they stand to lose significant revenue.

License management also helps companies that offer software via subscriptions and usage-based models to known when customers are nearing their subscription expiration date or exceeding their usage caps if they exist. That way, the software suppliers can approach those customers with resubscription offers and new plans that better address their usage patterns.

Nearly every company today relies on software in some sense. That provides users of these solutions to be much more agile in how they do business and consume solutions. It also creates new revenue opportunity for software suppliers. But to gain the greatest value from new software revenue models, suppliers need to employ new software licensing management solutions,

Watch The Journey to a Subscription Operating Model recording.

Edited by Maurice Nagle