- Content Marketing
Let's Measure Social Media ROI in a Way That Isn't StupidTo Grow Your Social Marketing Budget, Determining ROI Is a Critical Job SkillWe Need to Rethink Our Definition of Engagement
When Your Customers Become Your Contributors: Brand Journalism Meets TraditionalGoogle Is Changing the Close Variant Matching Option in AdWordsBefore You Invest in Online Advertising, Do This!Native Advertising: The New New Thing or a Race to the Bottom? [VIDEO]
Technology & Data
Social Change Agent Survey: Passion, Skill Set, and Persistence Lead to Career GrowthSandy Carter's 6 Social Business Lessons to Learn from Candy Crush5 Tips for Creating a Company Culture that Connects with Your Sweet Spot ClientsWhy Leadership Should Be a Collaborative Exercise
8 Internet User Statistics Every Small Business Should Know AboutIs Your Small Business Doing Content Marketing Wrong?5 Free and Effective Social Media Tools Perfect for Small Businesses
- Social Organization
Beyond Engagement: Why Advocacy Is Always About the PeopleFormer IBM Senior Advisors Launch Brands Rising to Build Employee Advocacy ProgramsPerformance and Risk Management Through Social Media TrainingEmployee Advocacy Summit: Advocate Stories from the Field
- Customer Service
Join us September 15th in Atlanta for The Employee Advocacy Summit and learn how to unleash the power of your employees.
Post your event here and we'll share it with our community. If one of our members is featured, we'll promote as well on their profile.
- Marketplace & Webinars
The SMT Marketplace
Your resource for exclusive content and insights from Social Media Today, and opportunities to reach our community of professionals.
The Social Business Book Club brings you books, discussions, and insights from today's to business thought leaders.
Join interactive talks and and panel discussions with leading thinkers and practitioners on social media and networked business, or browse the catalogue of recorded sessions - all completely free.
Reach Social Media Today's community of marketing and communications professionals in an editor-approved context with a native advertising package.
Cloud and Software Subscriptions Transform the Market
Posted on July 19th 2014
Most CIOs would prefer to be freed from the ongoing burden and rising cost of managing software license compliance. It's one of the primary reasons why open source software subscriptions -- that don't require traditional licenses -- are so appealing. It's also a key driver of pay-as-you-go cloud service adoption.
Forward-looking software vendor executives also acknowledge the apparent shortcomings of the legacy licensing model. Some are choosing to change. Others are stubborn and continue to seek ways to extend the life of an obsolete approach to revenue attainment.
Demand for Short-Sighted Software Monetization
The three software license management (SLM) functions include defining software versions and licensing rules (development), automating license issuance and invoicing (deployment) and ensuring software is used in accordance with terms of a purchased license (enforcement).
The latest global market study by Frost and Sullivan discovered that market participants are gradually shifting away from business models based on traditional user- and site-based licensing policies to monetization models centered on the actual use of on-premises and cloud software.
In response to this trend, the SLM market earned slightly less than $300 million in 2013 and is expected to cultivate more than $425 million by 2018.
Across all key verticals -- desktop application software, embedded software within intelligent devices and cloud-based applications -- there remains scope for current and new vendors to find growth worldwide.
SLM solutions are gaining in popularity as they enable software vendors to efficiently monetize their products -- particularly for enterprise, networked, and cloud-based deployments. Unfortunately, they typically don't solve the root problem for end-customers -- CIOs and their Line of Business leaders.
While business-to-business (B2B) software publishers are the most mature users of software monetization technologies, intelligent device manufacturers are becoming a growing end-user segment.
"With the rise of the Internet of Things, embedded device vendors are actively embracing SLM technologies to limit counterfeiting on the production line, achieve dynamic adjustment of product stock keeping units (SKU) after deployment, and manage complex licensing models," said Avni Rambhia, industry manager at Frost and Sullivan.
As SLM solutions become more user-friendly and compatible with new deployment models -- such as virtualization and mobile cloud computing -- they could attract other vendors to the field, but it's a market opportunity that's likely to be short in duration. Eventually, even the most inflexible software developers will migrate towards the subscription or pay-as-you-go business model.
Photo Credit: Cloud Computing Savings/shutterstock