Gartner Research

Disruption in Software Business Models Creates New Opportunities for Monetization

Published: 17 February 2017

ID: G00322369

Analyst(s): Laurie Wurster , Robert Anderson

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
  • Impacts

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

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