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Smart Device Manufacturers Missing Opportunities to Monetize Apps

November 01, 2013
By Michelle Amodio, Software Licensing Contributor

Software licensing solutions provider Flexera Software, along with the folks at IDC, 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

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