Featured Article from Software Licensing

The Build or Buy Dilemma for Software Monetization

December 30, 2016



Software is devouring the technology sector, pervading every corner and vertical sphere at an astounding rate. Mobility, a subscription-based services economy and the IoT are transforming the way software is marketed, sold and monetized and the rules of the game are changing drastically.

Software licensing and monetization have never been as important as they are in today’s technology economy. Software producers and developers are now faced with the interesting but critical challenge of whether they should build or buy a software monetization solution to protect their investments. The software licensing and optimization specialists at Flexera Software understand that this decision can make or break the future of any company playing in the software space, and bears a great deal of thought and strategy.

“The reality today is that product differentiation is coming from the software on the device and not the device itself,” said Jim Ryan, CEO of Flexera. “And the only way to survive, thrive and make money in today’s software-focused world is to have a very strong software monetization strategy that uses flexible licensing technology to drive new and recurring revenue streams from that valuable software.”

While it may seem logical for software developers to build monetization and optimization directly into their products, there’s a lot to be gained from a trusted, proven, third-party software monetization solution like Flexera’s. To explain some of the benefits, the company has published an eBook on the topic of build versus buy, available as a free download.

Scalability and agility are just two of the important features software developers need to consider when determining whether to build or buy their software monetization capabilities. Solutions must be able to transform to respond to competition, market demands and changes in technology, all factors that will influence software business and revenue models.

A purpose-built software monetization solution offers all of those features, freeing up software developers to focus on their core capabilities like innovating, growing, differentiating and delivering their unique products and offerings.

“If you were to go out on the market for an enterprise accounting systems or a payroll system, you wouldn’t build your own, would you?” asked Ryan. “Of course you wouldn’t. You’d look to acquire a proven, stable and scalable platform that is already built and readily available in the marketplace. The same thing applies to software monetization in a platform.”



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