Tag: Software Monetization

Floating Software Licensing 2.0 – Virtual Machines & Cloud Computing

Software licensing models evolved in the 1990’s with the emergence of the floating license model, a model still in wide scale use today, largely in technical software markets.  At the time, the floating license model was an evolution of machine-locked software that was prevailing on standalone or lightly-networked personal computers.  Interestingly, the floating license model is taking its next evolution, with virtual machines and Cloud Computing…

March 23, 2010 Cris Wendt

To Dongle or Not What Licensing Technology is Most Effective

The interesting aspect of using dongles for software licensing is that most Independent Software Vendors view them as providing portability, not necessarily more security.  Licensing systems allow the software to attach the entitlement rights to a specific machine or user.  The core question is, how do you identify the machine and/or user in such a way that is reliable (reduces revenue leakage) but at the same time does not create a negative user…

March 18, 2010 Revenera

Thinking Pay-Per-Use Software Licensing – Consider Remix!

Usage-based software license models that are effective will tend to balance two criteria – flexibility to meet the needs of the software consumers who are using the software to accomplish a task, and predictability of costs in order to satisfy the Finance departments of both the software vendors and consumers. Usage-based software license models can be difficult to perfect because of the seeming complexity, but by balancing predictability with fl…

March 16, 2010 Cris Wendt

Don’t be Afraid of Subscription License Models

Subscription license models still seem to cause a fair amount of anxiety among customers looking into the possibility of offering such a model for their traditional software. While there are some minor variances in the interpretation of a subscription license model, it is typically defined as an annual or multi-year software license that combines the right-to-use the software with the rights to obtain software updates and service. At the end of t…

March 3, 2010 Cris Wendt

Combating Grey Market Abuse

One of our independent software vendor customers recently lamented, with a resigned tone, that their software products are available at a 90% discount in the Chinese grey market. A grey market arises whenever your products have an exploitable price differential. Grey markets are quite well-known in pharmaceuticals where prescription drugs are purchased at steep discounts in one country and sold at below-market prices in another country. They are …

February 10, 2010 Revenera

The Myths of Pay-Per-Use Software Licensing & Pricing Models

A lot is being written about the eminent arrival of pay-per-use license models and how it will change the software licensing and pricing landscape. In fact, a lot has been written about the arrival pay-per-use models since the 1990’s. Nothing could be closer to the truth, yet farther away from the truth. Pay-per-use provides an intriguing and common value proposition to provide flexibility – pay for only what you use: eliminate the large up-front…

January 27, 2010 Cris Wendt

The A, B, C’s of Software License Compliance and Enforcement

Sometimes the topics of software license compliance and enforcement seem twisted, very much like one of those M.C Escher drawings popular in the 70’s and 80’s that show complex physical objects connected in impossible ways though the optical illusions created by his drawings. To this end, I thought a few blogs on the subjects of enforcement and compliance would be useful and interesting topics. Let’s start with some basic definitions: software li…

October 28, 2009 Cris Wendt

Improve Product Lifecycle Management Processes to Reduce SKU Count

One of the behaviors that we see with many software companies and high-tech manufacturers is SKU proliferation. When SKU counts are in the thousands or tens of thousands of items, the task of pruning the product line can become increasingly difficult.  This, in turn, exacerbates the SKU problem as something for someone else to solve.   In addition to the problems mentioned in the previous blog post, the proliferation of product data also can unde…

September 3, 2009 Cris Wendt

Flexible License Models – Which One is Right For You?

In the previous blogs, we discussed subscription based software licensing which combines the right-to-use along with access to software updates for typically a yearly fee. This week’s blog looks at a few examples of Usage Based Models. All of the commonly usage-based license models will have five important elements that are often “throttled” to achieve different business results: The breadth of software access (some or all products) The term (or…

July 22, 2009 Revenera