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.
As a long time partner for ISV’s in the software B2B market, we are often asked for help competing in a market that is becoming more and more cloud centric. Typically ISV’s have made a long term investment in applications that are deployed on-premise and therefore cannot efficiently be offered as a service.
While ISVs continue the move from traditional dongle support to software licensing and cloud licensing, it is important to note that many software vendors still use dongles as part of their overall licensing strategy. This creates an opportunity to improve how the back office functions for software activation, tracking, reporting, and license renewal, across all methods of licensing. Having a unified back-office for licensing and entitlement management that includes support for dongle, software licensing and cloud applications would greatly improve how effectively ISVs manage their offerings.
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.
Software monetization experts will connect on October 9th and 10th for SafeNet’s annual LicensingLive conference, being held this year in Cupertino, CA. Now in its 8th 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.
For the last several years, the software licensing experts at SafeNet have helped software as a service (SaaS) vendors sell their stuff based on what features their customers use and …
The rise of Software-as-a-Service (SaaS) over the past several years has led to an increase in the popularity of subscription software licenses. Subscription licensing pre-dates SaaS, but the cloud delivered nature of SaaS has naturally led to this increase in subscriptions.
At SafeNet we’ve seen this evolve in the past year where both enterprise buyers and software publishers are increasingly moving beyond subscription to a pay-per-use model for licensing software. We’ve seen this increasing demand for pay-per-use from our ISV customers who are delivering their software in the cloud, and from those that are providing on-premise software but who want to charge based on usage.
At a recent conference our CEO asked: “What’s the average price of software?”
An interesting question. I started thinking about the mix of consumer vs enterprise, the uptake of subscription based and usage based pricing, and a host of other factors that left me spinning to the point I concocted a number way off the mark. I’ll preserve a little dignity and not share my answer, but ask that for a moment that you ponder the same.
I suppose the title of this article may provide a clue. So do you have your guess?
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.
Recently, Adobe announced that it is moving the Creative Suite (which includes Photoshop and other graphic design applications) to Cloud-based licensing. The company will no longer distribute boxed versions with perpetual licenses. This move demonstrates a growing transition to Cloud-based subscription licensing, which SafeNet pioneered in 2010 with the introduction of the first Cloud-based software licensing service – Sentinel Cloud.
Adobe is positioning this announcement as very beneficial to its users, providing the customer with immediate access to the latest features and upgrades, enhanced collaboration, cloud based storage, and more.