In my recent blog post, “Delivering Record Results – and Customer Value – With Electronic Software Delivery” I talked about the significant growth that our Electronic Software Delivery (ESD) solution has seen since 2012. But one could ask – what is driving this adoption? What does this mean to my customers? I believe that the need to reduce operating costs, the need to empower end-customers with self-serviceability and the need to increase profitability are the primary drivers of the increased adoption in electronic software delivery.
1. Reduce Operating Costs
For starters, there are huge cost savings to be realized with not having to ship DVDs. Assuming the cost of creating, storing, and shipping a software on a DVD is $20 - our customers have saved $9.5 million just in the past year. Moreover, there are significant cost savings due to fewer support calls and issues, since users can readily get access to latest versions.
2. Increase Profitability
Users often perceive a maintenance plan to be much more valuable when they realize that they can self-serve and download the latest and greatest versions of the software, as soon as they are made available. At the same time companies need to make sure that users have an active maintenance contract, before providing access to software updates and patches. In classic economic terms – this is to ensure that there is no “free riding” which always results in lost revenues. Our ESD solution is entitlement-driven which means that updates and patches for a product are shown only if the user is entitled to the product and is also active on maintenance. Making the availability of updates conditional on maintenance not only eliminates free riding, but also increases renewal rate and results in incremental revenue.
ESD also allows our customers to accurately know which users have downloaded which version of the software and will allow them to send a notification when a new version is released. Last but not least, automated export compliance checks keep our customers in compliance with export laws. See more about export compliance checks in my recent blog, “More Confidence, Less Risk in Export Compliance.”
Finally, all of this allows our customers to differentiate their products from their competitors and helps increase customer satisfaction. As we all know, keeping customers happy is the best business strategy.