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.
How long will it take to get up and running? Without a doubt, this is the question I get asked the most as a software licensing solution consultant. Instead of simply giving you the obvious answer nobody wants to hear (yes that answer is “well, it depends”) I will simply answer the question.
As part of my family’s annual exercise, I’ve spent the last couple of weekends doing some spring cleaning. As I remove loads and loads of accumulated junk at home, I cannot but wish I had stayed lean and had to manage less. This is a sentiment I’m sure most IT managers echo when they look at their portfolio. Cloud and subscription however, are changing that. Let us examine the effects of going to cloud licensing in the context of spring cleaning: staying lean, nimble and flexible.
Cloud is changing the way Software Publishers (ISVs) are monetizing their offerings. An increasing amount of workload is now moving from on-premise to cloud. This transition is driven by two factors: what customers and/or competition are dictating, and the need for ISVs to expand their reach to new segments. As a result, more and more ISVs are making the inevitable move to cloud.
When implementing business solutions using commercial or third-party solutions, what’s the best software delivery option? Should you look for a solution managed by the application provider? Or do you buy a license and implement it in-house, using your own staff to implement, install, and manage the solution? Of course, the answer is “it depends”. In order to determine what would work best for you, the first step is assessing the options against your priorities as a business. Here are some considerations:
Software consumption is continually changing. Users expect an evolving hyper-connected solution while their consumption needs demand licensing flexibility. As a result, providers need to offer scalable and flexible solutions now more than ever.
Running Monetization? Let me explain.
My professional life is focused on software monetization; providing software companies with solutions to further monetize on their software offering. In my personal life, my hobby is running. I’m the traditional ISV of running. I started in primary school when I realized that I was born with a Unique Selling Proposition: endurance. While others would collapse on the sidewalk trying to release a side cramp, I just endured and came first.
SafeNet Inc. today announced that analyst firm Frost & Sullivan has presented the company with the prestigious Market Share Leadership Award for its leadership in the global software monetization market. Frost & Sullivan recognized SafeNet for its leadership in market share, growth outlook, continued commitment to the core business-to-business market, and focus on emerging cloud and embedded markets.
In today’s tough economic scene where cash is king, everyone is being driven to conserve cash. As a result, buyers are asking for discounts from their vendors, converting from CAPEX to OPEX or license optimization or a combination of these. Any of these mechanisms can reduce revenue for the ISV. CAPEX to OPEX movement is of specific interest recently as this usually leads to discussions on pay-per-use and/or subscription pricing models. ISV’s typically think of migrating into SaaS offerings when they consider offering these new pricing models. Offering SaaS has its own set of challenges including requiring a hosting infrastructure, collecting payments, R&D efforts to build the new SaaS platform and its impact on current product roadmaps.