|By RealWire News Distribution||
|March 5, 2014 05:18 AM EST||
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."
Learn more about Flexera Software's:
- 2013/2014 Key Trends in Software Licensing and Pricing and 2014 Predictions
- Licensing & Entitlement Management Solutions
- Software License Optimization Solutions
- Application Readiness Solutions
- Installation Solutions
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
T: +44 7958 474 632 / +44 7976 652491
*All third-party trademarks are the property of their respective owners.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Dec. 8, 2016 01:00 AM EST Reads: 3,950
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, discussed how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team at D...
Dec. 8, 2016 12:30 AM EST Reads: 1,099
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 8, 2016 12:15 AM EST Reads: 1,322
"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.
Dec. 7, 2016 11:45 PM EST Reads: 988
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
Dec. 7, 2016 10:30 PM EST Reads: 844
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 10:00 PM EST Reads: 1,189
In his session at Cloud Expo, Robert Cohen, an economist and senior fellow at the Economic Strategy Institute, provideed economic scenarios that describe how the rapid adoption of software-defined everything including cloud services, SDDC and open networking will change GDP, industry growth, productivity and jobs. This session also included a drill down for several industries such as finance, social media, cloud service providers and pharmaceuticals.
Dec. 7, 2016 09:15 PM EST Reads: 362
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.
Dec. 7, 2016 08:45 PM EST Reads: 1,632
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Dec. 7, 2016 08:15 PM EST Reads: 2,210
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of Soli...
Dec. 7, 2016 07:15 PM EST Reads: 1,802
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
Dec. 7, 2016 07:15 PM EST Reads: 405
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
Dec. 7, 2016 07:00 PM EST Reads: 484
Join Impiger for their featured webinar: ‘Cloud Computing: A Roadmap to Modern Software Delivery’ on November 10, 2016, at 12:00 pm CST. Very few companies have not experienced some impact to their IT delivery due to the evolution of cloud computing. This webinar is not about deciding whether you should entertain moving some or all of your IT to the cloud, but rather, a detailed look under the hood to help IT professionals understand how cloud adoption has evolved and what trends will impact th...
Dec. 7, 2016 06:00 PM EST Reads: 2,667
In his session at 19th Cloud Expo, Claude Remillard, Principal Program Manager in Developer Division at Microsoft, contrasted how his team used config as code and immutable patterns for continuous delivery of microservices and apps to the cloud. He showed how the immutable patterns helps developers do away with most of the complexity of config as code-enabling scenarios such as rollback, zero downtime upgrades with far greater simplicity. He also demoed building immutable pipelines in the cloud ...
Dec. 7, 2016 06:00 PM EST Reads: 1,872
"We are the public cloud providers. We are currently providing 50% of the resources they need for doing e-commerce business in China and we are hosting about 60% of mobile gaming in China," explained Yi Zheng, CPO and VP of Engineering at CDS Global Cloud, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 7, 2016 05:45 PM EST Reads: 1,106