What does the year ahead look like for Software Producers?
It is a vibrant time and many trends influence the market – both Software Producers and Intelligent Device Manufacturers continue to move from perpetual to subscription licensing models and some are already looking at usage-based or outcome-based monetization models as their business models evolve. Enterprises ask for more transparency that will enable them to pay only what they use rather than creating shelf-ware that is eating up budgets without delivering value.
Another trend that will get more traction in 2017 is the move from on-premises deployments to the Cloud – for hosting services as well as for software that is increasingly being delivered in a SaaS model. Enterprises start to implement a Cloud-first strategy, which makes it easier for them to stay current and reduces the effort for maintenance and support. Software producers on the other hand come up with compelling offers like BYOL (Bring Your Own License) to make it easier for their big enterprise customers to move to the Cloud.
Finally, the Internet of Things (IoT) creates new software-based business models and solutions every day and manufacturers move away from a one-off hardware sale towards a recurring revenue model. They also provide more flexibility to their customers by enabling them to turn features on and off on demand and continuously receive upgrades.
During the IDC and Flexera webinar, Amy Konary, Program Vice President for SaaS, Cloud, and Software Business Models at IDC, will share top predictions for worldwide software business models and software monetization for 2017. These predictions make up the framework for the planning and execution of technology-related initiatives of the IT and line-of-business (LOB) decision makers and influencers in the year ahead.
“As organizations look to meet emerging customer requirements and respond to competitive market pressures, we expect that flexible, digitally centric business models like those that have transformed the software industry to become a critical component of future growth for all kinds of organizations,” said Amy Konary. “As such, organizations will not only undergo changes to the way that they purchase software but will also change the way that they price and package their products. The business model changes that the software industry has experienced will be replicated in other industries. IDC expects that many companies outside of the traditional software industry will soon receive a crash course in the challenges and opportunities of software monetization.”
Program Vice President for SaaS, Cloud, and
Software Business Models at IDC
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