Are Application Producers in “Climate Change” Denial?

Introduction

The environment in which application producers create, sell and manage their software is in a state of dramatic and accelerating change. Survival for these producers experiencing this business “climate change” depends upon their ability to read the writing on the wall and address these challenges head-on. To thrive in a dramatically different business climate means adapting business models and operations accordingly, and applying best-in-class people, processes and technology.

For producers – business operations revolve around Software Monetization. How do producers adapt to changing technology environments, license their software to maximize profits, protect their intellectual property and keep customers happy amidst the whirlwind of constant and buffeting change?

This report examines the new and emerging technology trends that are having the greatest climate change impact on application producers, the struggles they’re facing in the face of software climate change, and some solutions that could make a difference for those producers ready, willing and able to adapt.

Part 1: Evidence of Business “Climate Change” – Environmental Risk Factors Posing for Producers

Opportunities and Risk of Emerging Technologies

Preparedness is a measure of assessing opportunity and risk, and then acting on the best information. The impact of new technologies is an essential element of this measurement. At a strategic level then, a good leading indicator of business climate change preparedness can be gleaned by examining the trends and technologies in which producers currently see opportunity and risk. We asked respondents to consider the benefit and risk of a host of emerging technology trends that are being widely discussed today.

In terms of opportunities – It should not be surprising that producers see the greatest potential in such categories as providing mobile applications (51 percent), supporting virtualization (45 percent), offering subscription based licensing (43 percent), embracing public cloud computing (41 percent) and the Internet of Things (IoT) (37 percent), to name a few.

In terms of risk, security topped the list of producers’ concerns. Given the growing instances of data breaches, security vulnerabilities and reports of malicious code found on corporate networks, this should also not be surprising. According to the survey, 48 percent of producers view security as a significant risk. In comparison, other tech trends seem to pose much less business climate risk to respondents. For instance, only 20 percent of respondents see risk associated with Bring Your Own Device (BYOD), only 18 percent see risk in providing mobile applications, and only 17 percent see risk in public cloud computing.