Disruption in Software Business Models Creates New Opportunities for Monetization

Archived Published: 17 February 2017 ID: G00322369

Analyst(s): |

Not a Gartner Client?

Want more research like this?
Learn the benefits of becoming a Gartner client.

contact us online


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
© 2017 Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction and distribution of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartners research may discuss legal issues related to the information technology business, Gartner does not provide legal advice or services and its research should not be construed or used as such. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The opinions expressed herein are subject to change without notice.

Free Research

Discover what 12,000 CIOs and Senior IT leaders already know.

Free Access

Why Gartner

Gartner delivers the technology-related insight you need to make the right decisions, every day.

Find out more

Call +1 800 213 4848 or contact us

to become a Gartner client.