You’re trying to drive the most revenue from your products – so why leave money on the table?
With a plethora of software development and deployment options available to independent software vendors, intelligent hardware manufacturers, and even enterprise dev/ops teams, why in the world wouldn’t you want to think through how you will monetize the solution over the long tail of its lifecycle?
(Hint: you wouldn’t if you cared about earnings per share, market share and customer experience)
Modern software deployment options have multiplied, ranging from traditional on-premises deployment using perpetually licensed development tools to hosted, SaaS (Software-as-a-Service) and cloud deployments using open stack dev/ops componentry.
The one constant theme revolves around key attributes like:
- Intellectual property protection (from piracy and contract non-compliance)
- Pricing model agility and flexibility (feature-based pricing elements, “freemium” models)
- Offering precision optics into actual feature and resource consumption (usage)
- Ensuring integration with back-end billing platforms for round-trip accounting
The cloud deployment model has recently expanded to service offerings, including Microsoft® Azure, Amazon® Web Services and more. Growth is fast and furious in this sector as it’s been predicted that cloud infrastructure will double in size by 2018, with a compound annual growth rate (CAGR) of 65% through 2018. Cloud vendor Microsoft predicts that their annual cloud revenue will reach $20 billion by 2018.
While there are many factors fueling the adoption of cloud, increasingly application producers are realizing tangible benefits by offering applications on a trial basis and in various feature bundles offering varying levels of functional complexity. Bottom line: they realize the critical importance of monetizing their products via software licensing.
The value of establishing a common licensing platform, upon which a wide variety of applications or virtual appliances can be metered from, affords the solution provider maximum flexibility and reuse as their solution sets evolve over time. Cloud-based licensing can dramatically simplify licensing complexity while optimizing revenue generation.
Software licensing in the cloud (Licensing-as-a-Service or “LaaS”) provides many benefits to software producers including:
- Making it easy to rapidly and cost-effectively transition their software solutions to cloud while ensuring their intellectual property is being protected
- Gaining insights with usage management capabilities to see how their products are being used
- Further optimizing subscription-based licensing models
- Protecting their intellectual property regardless of deployment option
- Ability to proactively monitor feature/applet utilization which leads to monetization precision and timeliness
Specifically, Software Monetization vendors like Flexera Software offer software producers an ability to integrate their Software Monetization components within the Azure Marketplace, helping them accomplish these LaaS-enabled objectives:
- Swift, transparent on-ramp to Azure serving all consumption-based software licensing models including subscription, perpetual, pay-per-use, hybrids and more
- Provide robust usage management facilities, enabling software producers to proactively manage their business for maximum profit generation
- Seamless integration into back-office billing platforms, processes and corporate licensing models, providing true lifecycle management
- Rapid time-to-market
Want to see LaaS in action? Visit Flexera Software on the Azure Marketplace!