Featured Article from Software Licensing

Smart Device Manufacturers Missing Opportunities to Monetize Apps

November 01, 2013



Software licensing solutions provider Flexera Software, along with the folks at IDC (News - Alert), took it upon themselves to survey industry professionals to get some insight into the overall software licensing cycle.

What they found was that, out of 750 respondents comprising application producers and end-user enterprises, and more than 125 device manufacturers, the top challenges remain agility, costs and margins. Almost half of survey respondents said that a major concern was reducing time to market for creating new products, while 38 percent said enhancing their ability to react quickly to changing market needs and/or new market opportunities ranked at the top of their major challenges. 

87 percent of survey respondents indicated they either already have “gone intelligent” by integrating software with their hardware products or they plan on doing so within the next 12-24 months. However, device manufacturers are missing out on revenue opportunity by not monetizing on their apps specifically built for their hardware.

“With shrinking margins on hardware sales, manufacturers are increasingly looking to leverage the software assets developed for their devices in various ways. However, in the past, this software may have been given away with the hardware or bundled with the hardware in such a way that the value of the software was not called out separately,” said Amy Konary, vice president of software licensing and provisioning at IDC. “These firms are finding that monetizing or licensing their software can provide an additional high-margin revenue stream, protect intellectual property (IP) from misuse, simplify product packaging while allowing for more flexible configurations, and lower inventory costs by decreasing the number of SKUs needed to satisfy unique customer demands."

To meet this challenge, Flexera Software offers a Software Lifecycle Experience Management solution, a complete package that helps users reap the monetary benefits of their innovations. This solution covers every aspect of the software lifecycle and more; installation, product integration, and in-product communications.

Flexera’s software license compliance solutions also help customers generate more revenue by ensuring that clients remain compliant with all license agreements.

By taking the proper steps and using the right software licensing solutions, manufacturers can increase revenue streams, product differentiation and better serve their customer base.




Edited by Blaise McNamee
Article comments powered by Disqus


Free Trials

See For Yourself Why So Many Trust Flexera Software Solutions

Featured White Papers

Harbrick: Industry Leader Monetizing the Internet of Things for New Opportunities

Achieving Software Monetization Maturity
Application producers and device manufacturers are faced with many challenges as they try to grow revenue and streamline back-office processes. Challenges like penetrating new markets, defending against aggressive competitors, transit ioning to new licensing and pricing models...

Harbrick: Industry Leader Monetizing the Internet of Things for New Opportunities

Harbrick: Industry Leader Monetizing the Internet of Things for New Opportunities
Harbrick is an innovative technology company that is helping shape the future of driverless (autonomous) vehicles. Harbrick produces PolySync®– "the autonomy operating system" – a software platform made to help developers build, test, and deploy automated vehicle applications quickly...

The IDC MaturityScape: Subscription Business Model Management

The IDC MaturityScape: Subscription Business Model Management
This study is designed for suppliers of products or services that are sold via subscription business models, and provides a framework required for the effective management of subscription approaches...

Featured Press Release

Featured Webinars

Why Software CFO's Should Care About Entitlement Management

Webinar: Software Monetization Maturity Model - How to Get Your Organization to the Next Level
Application producers are faced with many challenges as they try to grow revenue and streamline back-office processes, and those that are thriving have adopted a strong and well thought out software monetization strategy.

Why Software CFO's Should Care About Entitlement Management

Why Software CFO's Should Care About Entitlement Management
Learn from Joe Freda - a Top 250 Software CFO - as he discusses why entitlement management (knowing which customers license which products) can accelerate revenue recognition, reduce risk and increase customer satisfaction.

Software Monetization Maturity Model - How to Get Your Organization to the Next Level

Software Monetization Maturity Model - How to Get Your Organization to the Next Level
Application producers are faced with many challenges as they try to grow revenue and streamline back-office processes, and those that are thriving have adopted a strong and well thought out software monetization strategy.

License and Entitlement Management - Using Internet of Things to Create Opportunity

Gartner Webinar: License and Entitlement Management - Using Internet of Things to Create Opportunity
Laurie Wurster, Gartner Research Director, will share the trends that are shaping IoT, the shift from a hardware to a software company, what you need to know in order to protect your IP, and whether to build or buy a license and entitlement management solution.