Continuity – in the cloud as on-premises: the move to cloud and SaaS offerings will happen gradually over a longer period of time for many ISVs. Here operating systems must support both new cloud subscription processes and existing, on-premise and perpetual license models. This includes the analysis of software usage, regardless of the deployment and unified management of customers and their usage rights – whether in the cloud or locally. The aim is to ensure consistent software processes in the transition phase and to offer a consistently high level of service. With proprietary solutions, the management of different deployment and licensing models is extremely difficult. ISVs are well advised to use appropriate monetization solutions in the cloud.
No more unit licensing
Such monetization platforms all come with the necessary control mechanisms for licensing and subscriptions to monitor the compliance of each application to prevent overuse and protect intellectual property. The monetization models are thereby varied. Customers are demanding prices that reflect the customer benefits. And vendors open for more flexible monetization models such as subscription products or usage-based components.
Manufacturers benefit from greater flexibility in bundling of product features. Instead of new functions to be integrated directly into the SaaS application, ISVs can turn on licensing techniques additional features as needed on or off. This allows a quick time-to-market of new, user-specific services without additional effort in development.
Based usage analysis
Who changes as a software provider to the cloud, can measure the use of an application better and knows exactly how its customer uses the product and the added value it achieves it. Continuous analysis of use provides information about how a specific offer is accepted and for which products there are opportunities for cross-selling and up-selling. If a product is too rarely used, consulting services and training courses can be offered in support.
So that the measurement of actual usage enables monetization of the application throughout its entire life cycle. Subscriptions and renewals can be predicted more accurately measure the vitality of the software business and forecast future sales. Customers, however, benefit from a service-oriented and proactive support.
New opportunities for monetization
ISVs monetize their offerings in the cloud different. With the change to the cloud, they detach themselves from perpetual license models and go more and more to models that, “pay-per-use” or “pay-per-outcome” based on subscriptions approach. These models promise in the long term the greater revenue opportunities. In addition, providers can thus recurring revenue rather than generate revenue from one-time sales. The cost of capital costs more predictable operating expenses to be converted for the customer, which increases the purchase incentive and a positive effect on renewal rates for subscriptions.
To increase sales of upgrades, apps and services, monetization platforms are needed, which can track the installed base and manage. They also allow more flexibility in pricing. In addition to user-based pricing models, can also pay the storage of data, for example. For this, the use of additional services is tracked, measured and converted into customers comprehensible prices.