Guest blog post by Amy Konary, Vice President, IDC
For decades, success in the software business required executing on the following:
1. Make a Killer Product
2. Drive down Marginal Costs
3. Sell as many Units as Possible
4. Repeat Steps 1-3
Traditional software monetization models have been built to support this approach. However, today’s software customers are focused on using what they have, rather than buying more.
Just a few short weeks ago, the US Presidential election was held. No matter your beliefs, the real message the electorate sent to our Government representatives could be summarized in one simple word – “moderation.” When 115 million voters are separated by a mere 3 million, it is fairly obvious that people are done with extremes.
If you think about it, “moderation” is a term that we hear in other contexts as well. Your doctor has probably told you a few times, “It is okay to indulge in (insert your favorite unhealthy diet habit here), as long as you do it in moderation.” On Halloween night, I could almost hear parents pleading (or, in some cases, demanding) moderation from their children in terms of how much of their candy loot they could consume before they went to bed.
In software licensing automation, there are generally two phases: the automation of the business processes for the software manufacturer, and the automation of the end user processes of activation and deployment.
Phase 1: Automating the Software License Delivery Process
How we get from receiving the order to delivering the software and access to licenses to the end user is what most people consider as the complete license delivery process. As a part of this phase, the user typically receives a download link to the software and the access codes needed for activation.
I recently wrote a blog post titled “Mobility Matters” where I mentioned KPCB partner Mary Meeker’s annual report on Internet Trends. In my post, I discussed how B2B software developers need to pay attention to what’s becoming a heavy industry emphasis on mobile platforms and the amazing growth/adoption rates of tablets and smartphones when compared to traditional PCs.
Yesterday, Josh Constine of TechCrunch blogged about a recent mobile internet trends presentation by Meeker where she provided an update to some of the key stats from her early report in May.
Here are some updates called out from the TechCrunch post: