Companies today run on software. The hardware available is certainly terrific and can provide all of the capabilities needed but it is the software that adds all of the functionality, customization, and customer-specific response that is attracting customers. Lisa Morgan published a flexible software licensing article in the Buyer’s Guide on September 8, 2015 (that the San Diego Times republished on September 21) that discusses how the business of flexible Software Licensing is changing for the better for the customers. Her point,”To keep pace with end users’ expectations and to stay competitive, software companies are embracing more types of licensing models, including perpetual, subscription, pay-per-use, hybrid and others. On-premise licenses are being supplemented with or replaced by SaaS alternatives, and more developers are selling apps via app stores.”
The software developers had to keep up with the changed business landscape. The intelligent device manufacturers are urging them to use the software to differentiate their products so that they can take advantage of new revenue opportunities. Now, these manufacturers and developers are looking at new ways to monetize, protect, and monitor the use of their intellectual property. The traditional model was a perpetual license but the focus is shifting now to be more of a subscription model. The question is how do you get to that point?
Cloud connectivity and the Internet of Things are forcing a change in outlook for device manufacturers from vendors to service providers. This allows them to become recurring business partners rather than just a one-time retail sale with only possible service opportunities later. But, the subscription model makes a vast difference in how software is built, packaged, priced, sold, deployed, and maintained. Most new software companies focus on SaaS from the beginning and IDC estimates that 27.8% of enterprise applications will be SaaS by 2018, up from 16.6% in 2013. Pay-per-use as a model is increasing as well. One major benefit of both SaaS and pay-per-use is the data analytics available. The perpetual license model usually didn’t offer data on the use of the software.
Now the flexible software licensing industry can have the information on the functions, features and user experience the users really want and there are much better opportunities for cross-selling and upgrades based on actual use data. What is most important for the consumer is that more and more they can get exactly the software they need and pay only for what they use – and they aren’t locked into using that software forever.
Visit Clarus Communications here or call us at 855-801-6700 to speak with one of our knowledgeable staff so we can work with you on finding the right software management system for your business at the most affordable rates. Our goal is to ensure high levels of customer service plus building and maintaining a system that enables your business to run well.
Clarus Communications is a national leader that specializes in providing over 60 telecommunication and technology provider solutions and we would appreciate the opportunity to become your technology partner and help you find the best solution for you and your company.