Moving Beyond Homegrown Software Licensing and Entitlement as the Internet of Things (IoT) Creates New Revenue Opportunities
Device manufacturers face many challenges – but should building Software Monetization capabilities be one of them?
A recent Gartner study, “Market Trends: Move Beyond Homegrown Licensing and Entitlement as the IoT Creates New Revenue for Software” highlighted that there are many pitfalls IoT device manufacturers face when they build their own "homegrown" licensing management system or try to use their ERP/CRM systems to manage customer entitlements, including:
1. Downtime caused by your inability to respond quickly and easily to a hardware crash that requires you to rehost your licensing management system
2. Licensing code is not future-proofed to take advantage of changing licensing and security technology
3. Unable to quickly introduce new business models because your homegrown system requires engineering resources that just aren't available
4. Can't push out software updates to your devices quickly and efficiently without negatively impacting your user's experience
5. The cost to develop and maintain your homegrown (legacy) licensing management is becoming prohibitive
6. Difficult to add all the capabilities required for license generation, email notifications, self-service UI’s, Web services for in-product activations to meet customer requirements
7. If you are using your ERP/CRM system to manage the licensing lifecycle, where do you store the all the data? Using your ERP/CRM becomes a struggle with the new, complex data you'll have to track and manage. This includes linking assets and entitlements, tracking devices, storing activations, tracking all license and entitlement lifecycle events and dealing with the huge amounts of usage data captured for usage-based licensing.
This is just one of several trends from the recent report that we’ll review in future posts about how IoT is disrupting the model for how devices and software have traditionally been sold and supported, opening up new and exciting possibilities for device manufacturers – and customers – alike.
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More Internet of Things Resources:
- Read How Can You Monetize the Internet of Things? 5 Tips to Get You Started eBook
- View Internet of Things Software & Device Use Case Demonstration video
- Read Analyst Report: Gartner Software Licensing and Entitlement Management Is the Key to Monetizing the Internet of Things
- Read Capitalize on the Internet of Things Opportunity with Software Monetization Solutions