In my role as Strategic Analysis Manager of the Software Monetization division at Gemalto, I lead in-depth strategic market analysis, evaluate worldwide technology trends, and understand the competitive market to support new strategic leads and business opportunities. Recently, I had the pleasure of talking with Kathleen Goolsby, Managing Editor at SandHill.com, about the mind shift that’s taking place in the medical equipment sector.
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?
I can tell you with first-hand experience that being a product manager is a tricky and thankless role! On paper, your task is to understand customer needs and translate them into product requirements. You must then work closely with your R&D team to realize those requirements into a product that hits the market at the right time and at the right price.
Sounds simple, right? The reality is that its way more complex than that, with a myriad of decisions and trade-offs to make along the way. Product managers have to react to the realities of what is possible in the time and budget available, and constantly adapt to changing market conditions and competitive moves.
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.
This question recently appeared on Quora, and I thought it would benefit our readers to hear the answer.
“What is standard practice for when companies want to “switch seats” in a SaaS licensing context? I run an early-stage SaaS company and we sell on a per-seat basis. Occasionally I’ll get a request to switch a seat from one user to another. Sometimes this is because someone left a company and in other cases it’s because a user isn’t very active and they want to switch to someone who will be more active. What is standard practice here for this? Obviously we’d prefer that a new seat license be purchased rather than transferring a license but we also want to try to be flexible given that we’re a start-up”
This question reaches outside of the SaaS domain and applies to many per-user or named-user license models in the traditional on-premise environments.
Earlier today, SafeNet announced that the leading analyst firm Frost & Sullivan has recognized the company for their leadership and dominance in the global software license management market.
Featuring a …
Recently, SafeNet’s Prakash Panjwani had the opportunity to sit down with the team at TMCNet and discuss SafeNet’s success in the security market. As a part of that interview, Panjwani attributed much of the company’s growth to a strategy comprised largely of acquisition and adaptation. Through several strategic acquisitions, SafeNet has positioned itself well within the evolving security landscape.
One trend that Panjwani is seeing first hand is the evolution of companies migrating to the cloud.
Software monetization can be viewed as the adoption of any variety of measures an organization takes in order to increase the profitability of their intellectual property, in this case, software. These tactics can range from sophisticated anti-piracy and IP protection techniques to creative pricing and packaging strategies. It is important to note that no individual software monetization technique is greater than the combination of multiple techniques. No matter what type of software application has been developed or how that application is being delivered to the end-user, a comprehensive software monetization strategy hinges on four key factors – how effectively the software publisher can package, control, manage, and monitor, their offering(s).
In my last blog entry (Show Me The Money, Part 1) we looked at a number of factors that play into software revenue recognition when a vendor (ISV) introduces electronic license enforcement into their product lines. Part 1 focused on the principles and mechanics behind giving customers access to the software upon order execution so that the ISV may recognize revenue. Part 1 concluded by bringing another key element into the revenue recognition equation: time. Time can affect revenue recognition in a number of ways:
I bet that made your ears perk up a bit, didn’t it?
Your CFO probably has the same type of reaction when the topic of revenue recognition rears its head. After all, it is one of the most critical elements in your business’ machinery.
Customers frequently ask me about the impact license enforcement and license key delivery can have on a company’s ability to recognize revenue. This indeed can be a touchy subject, so I should start by making a few foundational statements.
I will not suggest how your company should manage revenue recognition nor do I intend claim the revenue recognition practices are acceptable or VSOE compliant. Your company’s finance team should be the ultimate authority as to what is acceptable for your business. I encourage any business considering license enforcement to ensure your CFO is will deeply engaged in your license delivery processes.
I will, however, discuss a number of revenue recognition techniques and best practices that I have seen used by multiple successful companies with revenues over a half billion per year.