In a world where technology is ever evolving, we want the software powering our devices to be able to keep pace. One of the perks of the cloud is the instant access to the latest in the software being offered. For managing the documents I need to share with others, I rely on Google (News - Alert) Drive. I don’t have to download or update anything as Google takes care of that for me.
In the world of software licensing, software needs to be malleable. User behaviors change frequently; market demands change quickly; and the needs we’re trying to meet with software can ebb and flow faster than we get tired of our latest smartphone. The challenge for producers is the delivery process does not always support this kind of change.
In a recent blog post by software licensing solutions provider, Flexera Software, we gain insights into the challenges that tend to plague software producers in dynamic markets. Traditionally, software updates were delivered to consumers or business users by way of physical media. The process was slow and expensive, and it placed the burden of the update on the end-user. When file transfers are done, a lot of manual activity is required.
With both methods, there is limited to no visibility into the updates completed or by whom. When this happens, the producer is exposed to revenue loss and security risks. Therefore, it made more sense to turn to an electronic software delivery method to address these challenges. Installs and updates can be delivered directly to end-users with little action required on their part. Plus, producers can protect maintenance and subscription revenues as only customers on maintenance or subscription plans can download the updates.
The electronic process also helps to improve customer satisfaction as the self-service portal allows customers to access software and updates 24x7. Customer download activity is also reported on a per product version level, which helps to increase cross-sell and up-sell revenues. In such an approach to software licensing, there’s also assured compliance with export regulations, revenue recognition and data privacy rules. As more end-customers finish downloading their software, you can recognize revenues, accelerating the revenue recognition process.
The point is the market is changing, which means software producers have to be agile enough to change with it to ensure optimal software licensing benefits. There’s a reason why the cloud is gaining ground – it’s good for users and producers. Focus on securing those subscriptions and watch how your relevance and your revenues can grow.