Rigid Software Licensing, Piracy and Delivery Frustrating Enterprise Users and ISVs

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Software vendors need to adapt to meet enterprise user demands, including software delivered as a service and accessibility across multiple devices, Gemalto’s latest State of Software Monetisation report has revealed.

The survey highlights just how enterprise software customer demands are evolving and software vendors. It also suggest that intelligent device manufacturers need to adopt flexible and adaptable licensing and packaging techniques in order to meet these needs and generate more revenue opportunities.

Specifically, 85% of respondent think software vendors need to constantly adapt to evolving market needs while a similar percentage of enterprise respondents said that flexible software packaging and accessibility across multiple devices are extremely important to them. In addition, four-fifths believe that software needs to be future-proof to be successful.

Of the ISV community, companies were still finding monetizing their software challenging, especially including back office tasks and licensing enforcement. Compliance was a key concern among ISVs. Four-fifths of ISV respondents worried about unlicensed software use, up from about three-quarters in 2012. Among unlicensed software usage, ISV respondents said that their top concerns were competitive theft of intellectual property (59%); intentional licensing agreement violations (56%); and software piracy (48%).

“The way that software is consumed is changing – whether users only want certain features, to use it on the device of their choice, or only want to pay for what they use,” said Shlomo Weiss, Senior Vice President, Software Monetisation at Gemalto. “Independent software vendors (ISVs) have to keep up with the changing demands of their customers. We see that piracy, reverse engineering, and deliberate and unintentional misuse are all still monetization concerns for ISVs. However, now more than ever, delivering software in ways that customers want to consume it is critical for creating a user experience that sells.”

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