Software producers gear up for 'appification' of the enterprise
As consumers we're used to being able to download apps for just about any purpose. As we come to expect this sort of flexibility in enterprise applications too, a shift is needed in the way software is delivered in order to keep us appy -- sorry!
A new report by Flexera Software in conjunction with IDC suggests that a transformation is under way, paving the way for software vendors and intelligent device makers, including IoT manufacturers, to profit from the 'appification' of the enterprise.
What makes an appified enterprise is a shift to software that is task-oriented allowing employees to focus on things like sequencing a DNA molecule, executing email campaigns, or utilizing specific drone aircraft features.
To profit from task-oriented apps, producers need to alter their focus to target usage-based activities. According to the Report, this is exactly what's happening. 17 percent of producers indicate that they now offer utility software licensing models -- up from 9 percent in last year's survey. That number is forecast to grow to 23 percent over the next two years.
"As consumerization of IT gains hold within the enterprise, increasingly we’re seeing business users want more flexible buying models allowing them to align cost to value," says Amy Konary, Research Vice President - Software Licensing and Provisioning at IDC. "Usage-based licensing models give producers a new way to capture revenue from customers that want to pay based on how they’re actually using an application. Offering utility licensing can supplement more traditional monetization models such as device, nodelocked, processor, core and others".
In an appified enterprise, employees want app-store-like, one-click software access and activation rather than more traditional, complex license activation models like email or website activation. In the survey 44 percent of respondents report that they now distribute license keys/files via in-product activation.
This also marks the demise of technologies like the hardware dongle for securing licenses. Only 19 percent of producers report using hardware dongles as their licensing technology.
"The key to capturing a growing market of users who view enterprise software in a more app-centric way is to offer tailored licensing, activation and delivery models that appeal to this audience," says Mathieu Baissac, Vice President of Product Management at Flexera Software. "The challenge for producers is that it requires tremendous time, resources and money to build, manage and maintain in-house these myriad new and traditional licensing models, and track back-office customer entitlements. This is why adopting automated software monetization solutions is becoming increasingly essential for producers".
You can download the full report from the Flexera website.