Intelligent Tech Channels Issue 03 | Page 14

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