Every so often, an opportunity presents itself that changes the software monetization industry for the better. Before the evolution of cloud, the move from on-premise hardware licensing methods to software licensing changed the way many ISV’s do business today. Brace yourselves, because the Internet of Things is poised to flip the software monetization market yet again.
It can be a balancing act when deciding what features to build into your software products. Some features have intrinsic value to the core functionality of the product, some features add a lot of marketing value, and there are some features that do nothing. How would you know which is which?
Today begins one of software monetization’s most prestigious events, LicensingLive 2014!. Held in Cupertino, California, LicensingLive 2014! will feature several industry leaders including Amy Konary, Rhianna Collier, Ray Wang and Jeff Kaplan, discussing the opportunities that exist in the software licensing space.
Technology has changed many industries in amazing ways. Transportation, manufacturing, healthcare—all have been transformed in the last decade due to increased collaboration, communication, and real-time access to contextual data facilitated by Cloud technologies, mobility, social networks, and analytics technologies. Despite being key enablers to advancement, technology software providers themselves have not always been at the forefront of using technology to transform their businesses from the inside out. However, pressure to transform is coming from all sides, most notably the outside–in. Customers are demanding change with their wallets. Cloud software is growing at more than five times the rate of the traditional packaged software market. By 2018, $1 of every $5 spent on software, and $1 of every $4 spent on applications, will be consumed via the cloud.
I recently participated in the Connected Cloud Summit event in Boston that focused on the opportunities and challenges associated with the Internet of Things (IoT). There was much discussion centered on the industry disruption that is happening across diverse markets such as medical devices and healthcare, communications, industrial automation, automotive, security, and more. It was remarkable to see the pace of innovation that is happening across those industries that is being driven the IoT.
With all major players in the software industry transitioning to the Cloud in some manner, the vast majority of new software companies entering the market are doing so as “providers of Cloud services”. As a result, the $368 billion software industry is changing forever, and packaged software and perpetual license revenue is in permanent decline.