Featured Article from Software Licensing
Smart Device Manufacturers Missing Opportunities to Monetize Apps
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
See For Yourself Why So Many Trust Flexera Software Solutions
Featured White Papers
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 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
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...
Market Trends: Move Beyond Homegrown Licensing and Entitlement as the IoT Creates New Revenue for Software
This Gartner report explains that the Internet of Things is turning manufacturers into software vendors that need to protect, differentiate and monetize offerings...
Featured Press Release
New Flexera Software/IDC Report: The Internet of Things, Intelligent Devices and Software Monetization Are Propelling the Third Industrial Revolution
A new survey report, The Third Industrial Revolution: Intelligent Devices, Software, and the Internet of Things, prepared jointly by Flexera Software and IDC, provides unique insights into how the third industrial revolution sweeping the global economy is being fueled by device manufacturers...
Featured Success Stories
- Siemens Building Technologies: Streamlines Inventory and Reduces Cycle Times with Flexera Software FlexNet Producer Suite