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.
When technical entrepreneurs build their companies, they don’t really know how to make money from their invention, and they invest more time on building their product without thinking of optimizing revenues. In the last couple of years, I’ve been engaged with some startup companies that have a great and existing product but no clear business model of how to actually monetize their software.
Cloud applications and services are not a trend anymore, and most of the new startup companies build their product in the cloud in order to minimize time to market and expand distribution. But, without a real business model, even the most helpful product on the market can have problems when it comes to software monetization.
Are you a former flower child? Do you remember the first steps on the moon, gas prices at $.35/gallon, the classic VW bug, or Woodstock? Then, you’ll feel right at home on LicensingLive in September.
We’re taking a trip back to a simpler time, complete with hippies and classic rock with our new contest titled “Peace, Love, and Licensing.”
Sind Sie ein ehemaliges „Blumenkind“? Erinnern Sie sich an die erste bemannte Mondlandung, an die Erstausstrahlung der Quizsendung „Allein gegen Alle“ mit Hans Rosenthal und daran, dass Gustav Heinemann als erster deutscher Bundespräsident die Niederlande besuchte? Dann werden Sie sich im September bei LicensingLive ganz zu Hause fühlen.
Wir reisen zurück in eine einfachere Zeit, komplett mit Hippies und klassischem Rock, mit unserem neuen Contest „Peace, Love and Licensing“.
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 …
As ISVs plan to expand their existing on-premise offering and evolving into additional cloud-service offerings, a very important consideration is often overlooked. Is it possible to effectively license the same application as both an on-premise solution and as a cloud-based service?
When looking for the right technology to monetize their offering from on-premise and into the cloud, an ISV must take into consideration these 4 critical aspects of licensing technology:
You ever have those moments when it hits you that sometimes hype becomes reality? After the mind-numbing amount of times that “cloud” has been used in almost every business meeting, marketing message, and corporate strategy document has been published over the past 18 months, I was starting to wonder why so few of the companies I speak to had actually starting to offer their software as a service. There were hints of it being adopted here and there, and sure, some companies were reporting their wins in the space, but the mainstream didn’t seem like it had really “gone cloud”.
Forrester’s Holger Kisker recently wrote a great blog post addressing the topic of how SaaS vendors must collect customer insights for innovation and compliance.
Gaining visibility to customer behavior and …
If you live in US or follow the news about US, you know that we are in middle of a political election season. You can’t go a week without watching the back and forth between Presidential candidates over topics that range from relevant to mundane, game-changing to ridiculous. One of the more serious topics (and probably at the top of the voters’ mind) is job creation, or the lack thereof. The US economy is growing but job growth is not keeping pace. At the heart of the issue is productivity: when the chips were down during the peak of recession, most companies learned to be very efficient. That is, they learned how to get more out of the resources they have. One of those efficiencies is increasing use of IT to improve productivity of employees. You could say job growth has given way to use of more software systems and tools.