Welcome!

Blog Feed Post

Failure to Automate Licensing & Entitlement Management is Missed Opportunity for Software Vendors, According to New Flexera Software/IDC Report

Report reveals ISV's failure to implement licensing & entitlement management technology reduces virtualisation revenues, go-to-market effectiveness, and quote to cash efficiency

Maidenhead, UK - March 4, 2014 - Despite the massive growth and evolution of the enterprise software industry, independent software vendors (ISVs) have largely failed to implement automated software licensing and entitlement management systems across their product lines, and their failure to modernise is hurting business. This is the conclusion of a new Flexera Software Application Usage Management Report prepared jointly with IDC, which surveyed more than 750 respondents from software vendors, intelligent device manufacturers and end-user enterprises on all aspects of managing the software license lifecycle. The report details vendors' progress in modernising their licensing and entitlement management with automated systems, and the consequences of failing to do so. According to the study, only 35 percent of ISVs have adopted third-party technology for managing licensing, and only a quarter have done so to manage entitlements.

"Effective software licensing and entitlement management is the gateway to revenue for software vendors. ISVs should strive to make it as easy as possible for customers to license their enterprise applications, pay for their software, and manage their entitlements," said Amy Konary, Research Vice President - Software Licensing & Provisioning, IDC. "Homegrown licensing and entitlement management systems are often not flexible enough to adapt to changing market conditions, and can leave ISVs at a competitive disadvantage. ISVs should consider moving beyond homegrown and adopt industry-standard technology that is designed to simplify and improve the license and entitlement management process and support flexible monetisation options."

Automation, Quote-to-Cash, and the Customer Experience
By integrating licensing, entitlement management and software delivery solutions with quote to cash process, application producers are able to deliver software electronically, provide a consistent customer experience and accelerate revenue recognition by distributing software licenses faster and more efficiently to paying customers. Licensing and entitlement management technology also enables vendors to more quickly and flexibly productise, monetise and protect their intellectual property (IP).

In light of the failure of most vendors to implement automated licensing technology, the Application Usage Management report shows vendors suffering the consequences. For instance 39 percent or respondents report difficulty enabling customers to manage their own software entitlements. 30 percent report difficulty protecting their IP and rebundling/repackaging their code to create different product versions for differing market needs. 28 percent report difficulty supporting "try-and-buy" and evaluation licenses.

ISVs also report licensing and entitlement management difficulties post-merger/acquisition. For instance, 68 percent report challenges after such an event integrating synergistic products from disparate code bases. 55 percent report difficulty creating unified licensing across all products post-merger or acquisition. 43 percent report difficulty maintaining disparate licensing systems.

"At a time when ISVs require maximum flexibility and agility to quickly adapt business processes as well as new revenue and monetisation models, they can no longer afford the drag of legacy, homegrown licensing and entitlement management systems," said Mathieu Baissac, a software licensing expert at Flexera Software. "The burden of maintaining disparate licensing and entitlement management systems that are not integrated with quote-to-cash processes is daunting and impacts both top and bottom-line profits and the customer experience."

Software Vendors Losing Revenue from Virtualisation
According to the survey, vendors are underestimating their risk of revenue leakage associated with virtualisation. Virtualisation risk arises from the ease with which enterprises can create instances of an application for use in a virtualised environment - like a public, private or hybrid cloud - without paying for that use. Though most vendors now have specific rules in their licensing agreements around virtualisation, without adopting a compliance policy and using licensing technology to enforce that policy, they are powerless to capture revenues from virtualised use.

Close to 65 percent of respondents see great opportunity in virtualisation. While only a small percentage, 9 percent, perceive great risk - the survey also reveals that revenue-leakage from virtualisation is, in fact, already a big problem. More than half of ISVs - 52 percent - report that customers are using their software in virtualised environments beyond what was paid for. 29 percent said they didn't know whether or not their customers were using their software beyond their entitlements.

"Creating licensing policies around virtualisation is of little benefit to software vendors if they do not have the ability to enforce the policy. The good news is that vendors have options. They can choose to prevent use in virtual environments altogether, ensuring no revenue leakage. Alternatively, they can monetise based on value by capturing customer usage in the virtualized environment and then charging for what was actually used," said Baissac. "Best of breed licensing and entitlement management technologies have solved the revenue-leakage problem associated with using software in virtualised environments. However because so few ISVs have adopted this technology, they're losing out on a critical revenue stream from virtualisation."

Resources:
Access the 2014 Application Usage Management Survey Results

Learn more about Flexera Software's:

Related Flexera Software Webinars
Related Flexera Software White Papers

About the 2014 Application Usage Management Survey
The 2014 Application Usage Management survey was conducted by Flexera Software with input from IDC's Software Pricing and Licensing Research division under the direction of Amy Konary, research vice president - software licensing and provisioning at IDC. This annual research project looks at application usage management trends and best practices. The survey reaches out to executives at application producers (Software vendors and intelligent device manufacturers) and enterprises who use and manage software and devices. This is the first year this survey is being conducted.

About Flexera Software
Flexera Software helps application producers and enterprises increase application usage and the value they derive from their software. Our Application Usage Management solutions are essential to ensure continuous licensing compliance, optimised software investments and to future-proof businesses against the risks and costs of constantly changing technology. Over 80,000 customers turn to Flexera Software as a trusted and neutral source for the knowledge and expertise we have gained as the marketplace leader in licensing, installation and compliance for over 20 years and for the automation and intelligence designed into our products. For more information, please go to: www.flexerasoftware.com.

For more information, contact:
Vidushi Patel / Nicola Males
Vanilla PR
[email protected]
T: +44 7958 474 632 / +44 7976 652491

*All third-party trademarks are the property of their respective owners.

Source: RealWire

Read the original blog entry...

More Stories By RealWire News Distribution

RealWire is a global news release distribution service specialising in the online media. The RealWire approach focuses on delivering relevant content to the receivers of our client's news releases. As we know that it is only through delivering relevance, that influence can ever be achieved.

Latest Stories
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, shared examples from a wide range of industries – including en...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. Jack Norris reviews best practices to show how companies develop, deploy, and dynamically update these applications and how this data-first...
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.