SOFTWARE MONETIZATION Industries
Network Equipment Providers
Business Models Under Pressure
Physical to Digital Transformation
The move to software business models is enabling network equipment providers to automate and optimize the delivery of new functionality and capacity while simplifying hardware and reducing manufacturing costs.
Revenera’s software monetization platform makes entitlement management more transparent and eases the implementation of new pricing models (e.g., capacity, concurrency and consumption).
CHALLENGE
Network equipment providers’ core business model is under pressure due to a combination of business and technology trends that make maintaining status quo a luxury few can afford.
Technology trends impacting network providers include:
- Increasing software intellectual property (IP) in physical products.
- Mainstreaming of virtualization technology.
- The ability to decouple software from hardware.
- An increasing desire for service providers and enterprises to transition from using custom hardware to generic, commercial off the shelf (COTS) hardware powered by software.
Network Function Virtualization and Software Defined Network are two of the more dramatic technology shifts impacting network equipment providers.
Business trends impacting network providers include:
- Pressures from service provider and enterprise customer segments to reduce costs.
- Demand for flexible buying and consumption models that involve a combination of capital and operating expenses (Capex and Opex).
- The advent of smaller, nimbler competitors that are looking to capitalize on the technology trends to leapfrog incumbents.
HOW WE HELP
A successful response to these challenges is dependent on the competitive position of the network equipment provider - their product strength, domain expertise, breadth of product portfolio, relationship with customers and channel partners and the ability to provide an integrated solution.
That said, the five considerations outlined below are fundamental to the way network equipment providers need to adapt to stay competitive and be profitable. And it’s in these core areas that Revenera excels:
- Managing Business Model Complexity
- Developing Software Pricing Strategies and Capabilities
- Capitalizing on Software Maintenance
- Orchestrating the Physical and Digital Supply Chain
- Protecting Software IP
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