Licensing in the Cloud

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.

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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.

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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.

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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.

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The planning process of delivering software is a continuous process – develop, license, deploy and support, and back again. All stages striving to deliver a product that is what the customer wants while providing profit to the service provider.

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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.

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SafeNet Inc. announced on Tuesday an enhanced version of its signature Sentinel LDK product. Sentinel LDK is a software monetization solution that provides hardware-, software-, and cloud-based license delivery, intellectual property (IP) protection, and license management from a single, cloud-based platform. Sentinel LDK gives vendors the flexibility to meet the specific licensing demands of each of their customer groups regardless of their preferred delivery model.

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In today’s business landscape, virtualization allows for the removing of resources from physical assets and allows for business to be more agile.  Virtualization is by no means a new initiative.  Since its infant stages in 2005, virtualized servers have already been launched by most organizations, which are looking to virtualize even further.  In 2013 alone, the Virtualization Solutions market is expected to grow 12.3% year over year.

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Listening to the presenters at last month’s LicensingLive! conference, I couldn’t help but think of the commonly used expression “the only constant in the industry is change.”  The software market has been undergoing fundamental change for a number of years now with the rise of virtualization, cloud computing, SaaS, and mobile. What stuck out at the conference is how these changes are affecting the way software companies of all types are approaching how they do business.

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Software monetization experts will connect on October 9^th and 10^th for SafeNet’s annual LicensingLive conference, being held this year in Cupertino, CA.  Now in its 8^th year, LicensingLive! has connected software publishers with peers, technology vendors, and industry analysts to discuss the latest software licensing trends, advice, and best practices.  This year’s theme, “The Evolved Software Experience,” focuses on how cloud computing has changed the experience consumers demand from their software, and will help guide how software vendors can provide an improved cloud-comparable experience while maintaining their hybrid portfolios.

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