Click here to close now.




















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
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...