It seems that almost every small company dreams of becoming a larger one, with the self evident corollary that with size comes resources, and with resources, mountains become molehills.
As an ISV, moving your application into the Cloud and offering it as a service is no trivial task. How software is supplied and managed for the desktop is very different than as a service. The usage and requirements of network connectivity, scaling, authentication and authorization, as examples, are all subtly different from the Enterprise model.
Once you get past the foundation of how to supply your application as a service, you need to solve the additional problems of authorization and utilization; or “Who has access to what?” and “How much are they using?”
Part 3 of 3 from the series “Take on Licensing: What High-Tech Manufacturers Need to Know”
Recently, I shared the five phases that high-tech manufacturers move through in the transition from hardware-based to software-based solutions. Now that we’ve reviewed the phases and the challenges, let’s discuss best practices.
In my last blog entry (Show Me The Money, Part 1) we looked at a number of factors that play into software revenue recognition when a vendor (ISV) introduces electronic license enforcement into their product lines. Part 1 focused on the principles and mechanics behind giving customers access to the software upon order execution so that the ISV may recognize revenue. Part 1 concluded by bringing another key element into the revenue recognition equation: time. Time can affect revenue recognition in a number of ways:
Part 2 of 3 from the series “Take on Licensing: What High-Tech Manufacturers Need to Know”
Shifting from an equipment manufacturer business model to that of a software company does not happen overnight, and typically occurs in phases. These are the common phases that take place during the transition from equipment manufacturer to software vendor:
Ever since software systems have been around, people have been working to connect them together to get added benefit. Sometimes that leads to large integrated all-in-one systems, sometimes it leads to efforts to standardise API’s and communications protocols and it almost always leads to lots of professional services.
In the cloud though, that’s changing. One of the most innovative companies I have seen is Boomi (now Dell Boomi). Their website does a better job of explaining their value proposition, but essentially it translates communications between systems – kind of like the Babel Fish (from HHGTTG), but for software.