Part 2 of 3 from the series “Take on Licensing: What High-Tech Manufacturers Need to Know”
Shifting from an equipment manufacturer business model to that of a software company does not happen overnight, and typically occurs in phases. These are the common phases that take place during the transition from equipment manufacturer to software vendor:
Part 1 of 3 from the series “Take on Licensing: What High-Tech Manufacturers Need to Know”
If you’re an equipment manufacturer in the high-tech sector, you are probably already deeply involved in the evolution from a pure hardware manufacturer to a software vendor. Whether you are in the business of selling software-driven equipment for the automotive industry, medical imaging and diagnostics, digital printing, sophisticated surveillance systems, coin-operated gaming and casino gambling, the change to software licensing is impacting your business.
There is a constant struggle between “lowest cost possible” and “simplicity of business model” that must be balanced between both ISV’s and CIO’s. Recently, I read a post on Computer Weekly titled “The Five Software Licensing Tricks CIO’s Hate” based on a Forrester report on unfair licensing practices. The title suggests that ISV’s as a category are generally engaged in misleading tactics targeted at CIO’s, which runs contrary to my experiences with most ISV business models and sales strategies. So, let’s try to look at this from a different angle as well.