Featured Article from Software Licensing

Successful Software Licensing Must Address Economic and Technology Shifts

August 10, 2016

Failure to have a comprehensive and flexible software licensing program in place can spell major trouble for any vendor. When a portion of profits are being derived from licensing, companies need to make the structure and implementation of their software licensing programs an imperative. The alternative may result in revenue leakage, unhappy customers and operational inefficiencies that can be very difficult to recover from.

An increasingly competitive technology and software landscape has made proper software licensing a necessity for any company that wishes to remain competitive and retain profits and market share. Fortunately there are several things businesses can do to ensure their software licensing strategies are successful, according to Flexera Software, which specializes in software licensing optimization and management.

Agility is one of the most important traits for any software licensing management program. Today’s technology and economic climates are in constant flux, and programs need to be flexible and adaptive in order to remain competitive. Flexera believes programs should be able to quickly support new operational flows as well as alternative licensing models like usage and cloud-based metrics. An open and agile program ensures a company can address shifts and changes in business without a complete IT overhaul of the licensing model.

A centralized license policy is another critical component of any licensing program. This type of policy offers a road map for the product revenue model that reflects corporate goals and objectives. Companies that have different branches and divisions, due to mergers and acquisitions or spin-offs, may have disparate licensing policies. Retaining separate and non-cohesive policies may result in duplication, customer frustration and operational inefficiencies.

The need for a centralized and agile approach makes a single, dynamic licensing platform an attractive option for many software companies. This type of platform will offer a technology agnostic interface and will be flexible enough to adapt to new types of licensing. Flexera offers its FlexNet Embedded platform, enabling businesses to build and modify their policies as needed. An entitlement management program can also be a great asset for any software licensing initiative. This type of program will be independent of ERP and CRM systems and will serve as a hub for all operational and license-based business activities.

Ultimately, successful software companies need to be able to grow and change to accommodate technology and economic shifts and trends. A successful licensing program will seamlessly support growth and change without impacting revenues or disrupting customer service.

Edited by Maurice Nagle
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