ENTERPRISE TECHNOLOGY
Revamping software licensing and user experience
Software vendors will no longer be able to follow conventional models of license based pricing with user flexibility expectations driving change . Jamie Longmuir at Gemalto explains the industry transformation .
Today ’ s software end users are increasingly connected and mobile . In addition , they ’ re looking to have software delivered to them as a service on the device of their choice , and they only want to pay for what they use . These changes and others are fundamentally shifting the way software vendors conduct business .
The growth of cloud computing , virtualisation , advancements in mobile technology and day-to-day experiences using the Internet have impacted software end users ’ expectations . Whether they are looking to free themselves from rigid licensing constructs , embrace pay-per-use models or use self-service entitlement management , the way people want to consume software is evolving .
Users of all forms of software , from consumer applications and enterprise ones to the software in intelligent devices , seek anytime anywhere access , user-centric licensing and pay-per-use consumption . However , vendors have been slow to adopt new business models that enable them to deliver the experience their customers want . Many of those who have been in the game for a while are still clinging to their onpremise or traditional hardware roots .
As the demands of a new generations of users start to shift , these vendors need to embrace the evolution or go extinct when users look elsewhere to meet unfulfilled needs .
For many software vendors , monetisation simply means collecting revenue by selling rights to use the intellectual property they have developed into valuable code . For
Jamie Longmuir is Regional Director at Gemalto
Of the end users surveyed only 10 % said their organisation is not experiencing challenges with software licenses
them , monetisation challenges revolve around protecting the revenue stream , defending themselves from piracy , theft , reverse-engineering and misuse of software . But now more than ever , monetisation goes beyond just protecting revenue and involves enabling revenue growth .
Delivering software in ways that customers want to consume is now a prerequisite in the ultra-competitive software market . Building relationships based on trust is the key to selling anything , and traditional software licensing has become a barrier . Software vendors need to look at licensing not exclusively as a rights-enforcement hammer , but instead as a way to differentiate themselves from their competitors and provide a rich user experience . Or at least one that does not leave the customer feeling cheated , bullied or confused .
Survey results , end users To take a closer look at software monetisation challenges vendors are facing , as well as software user disappointments with enterprise software vendors , Gemalto commissioned a survey of 600 enterprise software users at enterprise organisations with 500 or more employees from Austria , France , Germany , Japan , Switzerland , UK and US and 180 independent software vendors with at least 10 employees .
The survey research revealed that the vast majority of all respondents 85 %, think software vendors need to constantly adapt to evolving market needs . More specifically , 83 % said that software packaging must be flexible to meet a variety of customer needs and 81 % said that software should be accessible across multiple devices . 81 % also agree that software needs to be future-proof to be successful .
Of the end users surveyed , only 10 % said their organisation is not experiencing
14 Issue 03 INTELLIGENT TECH CHANNELS