Brent Pietrzak, Vice President of Global Services at Flexera Software, discusses the misconception that cloud or SaaS applications are simpler and, therefore, don't require software licensing and entitlement management capabilities. As Brent discusses, subscription licensing models used by cloud-based applications need to incorporate a lot of flexibility to be appropriate for various distinct markets, which creates challenges in managing software entitlements to accurately forecast revenue.
These subscription license models require business strategy alignment and the underlying technology and business processes to support them. Brent's recommendation is to start with the desired sales model and go-to-market strategies and then develop subscription licensing models that support them, not the other way around.
For more information, please read the white paper "Pay As You Grow Electronic Software Licensing."