Key Areas of Software Monetization Software monetization
1 key areas of software monetization
1.1 ip protection
1.2 pricing , packaging
1.3 entitlement management
1.4 usage tracking
1.5 advertising
key areas of software monetization
ip protection
software constitutes significant part of software company or device vendor s intellectual property (ip) and, such, requires strong security, encryption, , digital rights management (drm). depending on company’s particular use case, can choose implement hardware, software, or cloud-based licensing solution.
a hardware-based protection key, or dongle, best suited software publishers concerned security of product offers highest level of copy protection , ip protection. although key must physically connected in order access or run application, end users not required install device drivers on machines. software-based protection key ideal software publishers require flexible license delivery. virtual nature of software keys eliminates need ship physical product, enabling end users install , use application minimal fuss. cloud-based licensing, on other hand, provides automatic , immediate license enablement, users can access software device including virtual machines , mobile devices.
it in best interests of software companies , device vendors take necessary measures protect code software piracy, problem costs global software industry more $100 billion annually. however, software protection not preventing revenue loss; organization’s ability protect integrity of product or service , brand reputation.
pricing , packaging
an independent report vanson bourne found software vendors losing revenue due rigid licensing , delivery options. since demands of enterprise , end users evolving, software companies , device vendors must able adapt pricing , packaging strategies on fly. separating application’s features , selling them individually @ premium highly effective way reach new market segments. customers have come expect freedom consume software offering on own terms, why software companies , device vendors increasingly turning flexible licensing solutions.
entitlement management
an entitlement management solution makes possible activate , provision cloud, on-premises, , embedded software applications single platform. having ability manage homegrown or third-party licensing systems one, centralized interface conducive operationally efficient office. such solution in place, time-consuming manual tasks can automated greater accuracy , reduced costs. self-service web portals allow end users perform variety of tasks themselves, cutting down on support calls , improving customer satisfaction.
usage tracking
usage tracking provides essential business insight end-user entitlements, consumption of products , features. advanced data collection , reporting tools optimize investment in product roadmap , drive future business strategies. analyzing end-user behaviors can software companies , device vendors make sound pricing, packaging, , marketing decisions improve business processes , enhance customer experience. furthermore, making usage data accessible users helps them stay in compliance license agreements
advertising
the use of commercial advertisements , contextual advertisements have been foundation of software monetization since free software first hit market. advertisements can come out in many different ways such text ads, banners, short commercial videos , other types of software advertisements.
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