In the last 10 years we have witnessed a shift from hardware-driven (60-70%) sales cycle where software was provided for free, to manufacturers seeking to leverage the software assets embedded within their devices in various ways, including monetization as well as using software to protect and control the feature set delivered to their customers.
The software protection business has matured at a slow pace over the past decade. The industry has gotten better at developing improved customer experiences through more sophisticated web portals and web services, but ultimately the model’s foundation relies on license file transfer between the vendor and the end customer.
The improvements in the area of cleaner customer experiences through web services has allowed some vendors to minimize a fair amount of the friction this style of license enforcement has introduced into the traditional delivery and deployment model.
What makes the most successful Internet companies so successful? They understand that the Internet is much more than a delivery channel – it is a customer feedback channel. So they get smarter every day, and improve constantly. Software companies have yet to capture this opportunity – today the Internet is reduced to the conduit for ESD (Electronic Software Distribution), or the live application (Cloud).