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Flexera Software Sees Robust Demand Growth in China for Application Usage Management Solutions

Company opens offices in Hong Kong and Beijing to help application producers and enterprises drive greater usage and value from their software

Schaumburg, IL - May 28, 2013 Chinese enterprises, software vendors and intelligent device manufacturers are rapidly adopting global best practices and standards to maximize the value they derive from their enterprise applications while optimizing their spend, giving rise to increased demand for Application Usage Management solutions. To address this rising demand, the company is announcing today the opening of two new offices in Beijing and Hong Kong. Flexera Software currently has more than 700 customers in China.

"We know that implementing Software License Optimization best practices saves enterprises as much as 25 percent of their software spend by drastically reducing license under-use, or shelfware, and over-use - license non-compliance that results in costly 'true-up' penalties from vendors. At the same time, enterprise software vendors and intelligent device manufacturers are leaving money on the table by failing to implement flexible licensing and entitlement management strategies to more effectively monetize their products," said Tom Canning, Vice President, APAC, Flexera Software. "Chinese enterprises and application producers increasingly understand the tremendous competitive advantages that Application Usage Management can deliver. By opening our offices in Beijing and Hong Kong, we can more effectively provide the localized expertise and resources needed to maximize return on software investments."

HiSilicon Technologies Co., Ltd. A subsidiary of Huawei, has implemented Flexera Software's Software License Optimization solution, FlexNet Manager for Engineering Applications, to centrally manage license servers and report on concurrent license usage, and is already deriving significant value from the implementation. HiSilicon's goal was to drive maximum availability of its expensive electronic design automation software to users while minimizing the need to buy additional, unneeded licenses.

"FlexNet Manager for Engineering Applications gives us a proactive, systematic, and comprehensive solution for managing our EDA software licenses, " said Diao Yanqiu, Director, R&D Operations Department at HiSilicon Technologies. "We are achieving a higher level of management compared with the manual, reactive approach we used in the past, which involved waiting for issues to arise and then trying to resolve them. Now, with FlexNet Manager, license availability is improved, as is design team productivity."

Flexera Software develops solutions for both application producers and enterprises. For producers, the company's software Licensing, Entitlement Management and Delivery solutions, FlexNet Producer Suite for Software Vendors, and FlexNet Producer Suite for Intelligent Device Manufacturers - lead the market and are used in more than 20,000 applications. Flexera Software's InstallShield and InstallAnywhere installation solutions are the de facto industry standards, used on more than 500 million desktops around the world.

For Enterprises, governmental and educational institutions, FlexNet Manager Suite, Flexera Software's Software License Optimization solution, is the leader in its category enabling organizations to maximize their return on high-value software investments while maintaining continuing software license compliance. Used by more than 10,000 enterprises worldwide, AdminStudio Suite, Flexera Software's Application Readiness solution, powers an enterprise's Application Readiness process for migrations to Windows 7, application and desktop virtualization, and day to day application packaging operations.

Surveys recently published by Flexera Software, prepared jointly with IDC, underscore the global need for better Application Usage Management Solutions:

  • Enterprises Facing Growth in Shelfware: 56 percent of respondents say that 11 percent or more of their software spend is associated with shelfware, up from 49 percent last year. A third of all respondents indicated they are either dissatisfied or very dissatisfied with their current method for managing software licenses and usage (almost half of large companies over $1 billion in revenues reported dissatisfaction).
  • Enterprises Facing Increased Vendor Audit True-Up Penalties: 38% of enterprises indicated that 11% or more of their application spend is associated with applications that are overused, and therefore out of compliance, up from 26% one year ago. 64% of enterprises reported that they have been audited over the last 18-24 months. 24% of enterprises said their total true-up paid over the past year was $1 million or more.
  • Application Producers Failing to Fully Monetize their Applications & Intelligent Devices: Nearly one quarter (24%) of application producers believe their licensing and pricing strategies are either ineffective or very ineffective in capturing the true value they deliver in their products. 42% of application producers report that over the past 18-24 months, their software pricing and licensing strategies have changed. The most cited reason for the change was to generate more revenues (69%), up from 40% in 2011.

"Chinese enterprises and application producers increasingly see the opportunity for savings and increased profits by focusing on Application Usage Management," said Oscar Wong, head of Flexera Software's Hong Kong office. "We have already helped hundreds of Chinese companies solve these challenges, and we are confident that our local presence, combined with our global leadership in this area will strongly position us in the market."

Headquartered in Schaumburg, Illinois outside of Chicago, Flexera Software also has offices in San Jose, San Francisco, Cheshire, Maidenhead, Munich, Beijing, Hong Kong, Melbourne and Tokyo.


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