Here is a little secret – I love shopping. Yes, I admit it. I like shopping for clothes, shoes, wines – you name it. But I hate malls, stores, and I especially hate being followed around by a pushy sales rep!! When it comes to shopping, I have my own routine and associated expectations. I research my options, look at competitive alternatives (brands), seek a good deal without having to bargain, try to have it shipped to me (if possible), and should I need to return it, I want to be able to ship it back and get a replacement. My favorite online retailer meets all of my expectations, whether I am buying clothes or shoes for myself, and yes, jewelry for my lovely wife when I have messed up. This raises the question, why shouldn’t I enjoy the same experience when it comes to licensing software?
As software vendors move to software as a service, how are they handling the challenge of adapting their pricing strategies? Recently, IDC’s Amy Konary sat down with TMC’s Erin Harrison, Executive Editor, Cloud Computing, to talk about the evolving pricing model in the software monetization market.
According to Konary, software monetization in the cloud naturally lends itself usage-based subscription models and increased transparency for tracking. Automated tracking of entitlements and license usage down to the feature level has become expected, and cloud application developers need to carefully consider how they plan to integrate tracking and reporting into their solutions.