According to a recent post from Barron’s – “BlackBerry Earnings Preview: All Eyes On Software, Says UBS” – they key to BlackBerry’s success lies in software monetization – their ability to make money from the software in their devices.
They also think BlackBerry should ditch its devices and focus on just software and services, as this would make its business model less volatile. “Ultimately, the competitive landscape is tough with VMware (VMW), Citrix (CTXS), IBM (IBM), Mobileiron (MOBL), Good Tech all formidable competitors, as well as potentially Microsoft (MSFT) with Intune”
Many traditional device manufacturers are facing commoditization of their hardware products so they’re shifting from a hardware to a software focus. These device manufacturers are asking themselves how they can monetize their embedded software to create new revenue streams. Below are several key questions device manufacturers are asking themselves:
- What software licensing model(s) should be used? Subscription? Usage-based? Perpetual?
- How will we protect our software from accidental over-use, or outright piracy?
- How will we leverage the cloud as a software business?
- How will we get software updates to customers?
- What mechanisms will we use to capture usage data about our devices?
Additional resources relating to device manufacturers transforming their businesses to software companies can be found below:
- Upcoming Webinar – Register Today! License and Entitlement Management - Using Internet of Things to Create Opportunity
- Intelligent Device Manufacturers are Leveraging Embedded Software to Grow
- Flexera Software/IDC Report: The Internet of Things, Intelligent Devices and Software Monetization Are Propelling the Third Industrial Revolution
- Market Trends: Move Beyond Homegrown Licensing and Entitlement as the IoT Creates New Revenue for Software