Disruption in Software Business Models Creates New Opportunities for Monetization


Published: 17 February 2017 ID: G00322369

Analyst(s): |

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Summary

Virtualization, digitization, cloud, mobile and IoT greatly impact traditional software models. Technology strategic planners will find next-generation software monetization is not about protection, limited to IP licensing, but about growth from enabling new models with repeatable revenue streams.

Table of Contents

  • Analysis
  • Impacts and Recommendations
    • Demand for software access from any device (via BYOD or IoT) at any time, whether deployed on-premises or in the cloud, compels software providers to evolve licensing strategies beyond device-centric to entitlement-controlled, while maintaining a common licensing experience
      • Cloud Service Delivery
      • The Shift to Mobile
      • Virtualization
    • Concerns about paying for shelfware increase pressure on ISVs to track and aggregate usage data to enable pay-per-use (metered service) licensing models for both cloud and on-premises software
      • New Business Models
      • An Acquisition Economy
      • An Automated Back-Office Solution
    • Escalated costs, coupled with compressed life cycles for smart machines with embedded software, force IDMs to explore new methods for reaching customers and prospects without cannibalizing current customers and revenue
  • Gartner Recommended Reading
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