I was emailing back and forth with a colleague of mine the other day about whom, within the ISVs business stands to gain the most from offering trial versions of their software. Well, after much discussion, here’re the cliff notes…
It is no secret that the preference towards consuming software as a service via the cloud is growing rapidly. According to Saugatuck Technology, in 2010 the purchasing preference for all new ENT software was cloud-based, and is projected to hit nearly 50% by year end 2014.
Brace yourself – we are leaving the world of perpetuity and moving into a constant state of evolution! End-users are in the driver seat now and what they want they are going to get – if not from you, then from one of your largest competitors or a small start up that is willing to sell them the services they need, for the price they think is fair. You can have the most sophisticated, feature-rich offering on the market, but if you can’t offer flexible pricing and licensing models you will never reach your maximum potential! So what does it take to be agile?
At the highest level, there are two core ways issues with service agreement compliance will end up costing you, the service provider, a significant amount of money:
The software industry is in the midst of a dramatic shift. No software publisher big or small will be left unaffected by enterprise and consumer end-users’ growing preference to consume their software as on-demand services. According to industry-leading analyst firm IDC, by 2010 nearly 65% of new product from established ISVs will be delivered as SaaS services and nearly 85% of net-new software firms coming to market will be built around SaaS service composition and delivery. As a software publisher, the question you should be asking yourself is not how to avoid the cloud – but how to navigate a migration to the cloud for all or some of your applications as quickly and efficiently as possible. In a recent presentation, Saugatuck Technology’s Mike West made it quite clear that every aspect of an ISV’s business will be impacted by a shift to SaaS, from business planning and management, technology development and operational processes, and even corporate culture.
I stumbled across an interesting Gartner blog this morning that features a series of posts “SaaS vs Software” — all very interesting. In one of his more recent posts SaaS vs Software: Their Licensing Needs to be Integrated, Guy Creese (the blog’s sole contributor) begins to explore licensing. He starts by acknowledging that while everyone is talking about the need for a single platform that can run in-house or in the cloud, not a lot has been written about the growing need for a single licensing model as well. Definitely an interesting read, I recommend checking it out!
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