“There are only two qualities in the world -efficiency and inefficiency, and only two sorts of people: the efficient and the inefficient.” George Bernard Shaw
Software licensing is critical to your business. Why? Because in reality, without the revenue from software license fees, you’re going to struggle to pay staff, keep the lights on or expand your business in any meaningful way.
As a company that supplies leading-edge software licensing solutions to some of the world’s biggest and best consumer and technology brands, we’re constantly stating the case for efficiency. More specifically: modern 21st-century approaches to software licensing that move away from cumbersome software license keys. What’s the difference between effective and efficient? Effective software licensing is compliant. The number of software licenses issued is the same as the number of licenses deployed. Efficient software licensing means that the number of licenses issued matches business value – the number of licenses actual required AND being used by your customers.
One of the most common ways businesses waste money is by buying software that will never be used and a staggering amount of money every year disappears straight down the drain. But beware – it’s not just your customers IT budgets that need a bit of spring cleaning. Some ISVs (particularly those that are using outdated license key solutions) are also missing out on essential revenues.
Here’s our rundown of some of the software licensing industry’s most interesting statistics.
It seems that there is a general trend for over-licensing, which, if you’re an ISV could have you rubbing your hands together with glee – your customers are regularly paying for more software than they need to. But in reality a non-value driven business model will not survive today’s modern software markets. The IDC predicts that by the end of 2018 close to 50% of organisations will have the processes and tools in place to better meter usage of their major on-premises software.
If you’re an ISV you don’t just need to know how many licenses you’ve issued, you need to know whether your software is being underused- or even unused by your end customers. Ultimately the changing landscape towards enhanced software visibility translates directly to your bottom line. Gaining visibility into and control over IT assets is an extremely difficult task to accomplish using manual methods, software license keys and spreadsheets.