Software Licensing 2016: Seismic Shifts – Shaky Foundations

Software Licensing: The Foundation of Everything

Software licensing and monetization are the foundation for making money in the entire software industry. Traditional software vendors and developers of the software apps that power intelligent and Internet of Things (IoT) devices – all depend upon licensing to monetize and protect their intellectual property. And when it comes to Software Monetization, the enterprise software marketplace is in the throes of a seismic shift.

To respond to new technology and customer requests, numerous options now exist in pricing, delivery and monetization. Failure to understand and implement these options will result in a weakened business foundation – diminishing a producer’s ability to compete. In contrast, by taking a strategic approach to pricing and licensing, producers can create a flexible but strong foundation for their business, driving revenue growth and differentiation even as the software market shakeup continues.

Successful application producers understand that treating licensing and pricing as an afterthought would be detrimental to their business. They already have purpose-built Software Monetization technology in place which supports all their business models today and in the future. This enables producers to create a strong foundation that aligns business goals with software operations.

As we checked in on the key trends and practices in our 2016 Software Pricing & Licensing survey, two interesting themes emerged:

  • Technology is driving seismic Software Monetization shifts in the industry
  • Contradictions emerged regarding the effectiveness of some Software Monetization approaches – leaving some producers more vulnerable than others

Let’s take a deeper look at the key software monetization, licensing and pricing trends of 2016.