Entitlement Management Systems (EMS) and Software Licencing Management (SLM) are in high demand in today’s quickly changing technological environment. Businesses increasingly turn to commercial alternatives to manage their software licensing and entitlements. An extensive study was undertaken to determine the major trends fuelling the development of SLM and EMS. In this article, Let us learn more about the five key themes influencing software licensing and entitlement management.
Adapting needs to drive increasing demand
Because of changes in work environments and the popularity of technology based on the cloud, the way we work and engage with technology has undergone a significant transformation. The labor shortage has also accelerated the deployment of automated substitutes. These elements have caused the needs of Software as a Service (SaaS) businesses and their clients to change. Over the next seven years, there is a prediction that these reasons will continue to fuel a rise in demand for Software Licencing and Entitlement Management.
A pioneer in research technology depended on the powerful Licence and Entitlement Management solution. Its software was first hosted on-site at clients’ locations to reduce the possibility of a data breach. On-premises hosting, however, became impossible with the start of the Covid-19 outbreak.
Growing interest in software embedded devices
Everything from airplanes and industrial gear to individual automobiles and dishwashers now has integrated software. Customers now anticipate that these products will have embedded software that provides more capability. This trend compels B2B and B2C businesses to improve their physical products with embedded software. The market for software-embedded devices will continue to expand over the next five years, driving up the need for Software Licencing and Entitlement Management. But as this device-centric world expands, it might lose some of its sway.
Hardware companies broadening to new revenue streams is the driving force at work. Even well-known hardware manufacturers, like Go-Pro, have realized the importance of offering software solutions. The Go-Pro app, which allows users to make videos, was first released by Go-Pro. They launched Go-Pro Plus, a subscription service featuring cloud-based storage to monetize this software. By doing so, they met user requirements while diversifying their sources of income.
Usage data to gain deeper insight
Understanding how customers utilize your product is essential in today’s business environment. Systems for managing software licensing and entitlements offer useful information into how users interact with the programme. With this data, businesses may stop churn and find chances for upselling and early identification of poor consumer engagement. Purpose-built solutions will be necessary for long-term expansion as the value of the granular usage data supplied by Software Licencing and Entitlement Management systems increases.
Consider a supplier of medical devices who sells hardware that is networked with software. With the help of their entitlement management system, they can keep track of feature usage and raise prices frequently used to generate new revenue streams.
The following information is drawn from the expertise of the highly regarded metering and billing platform for usage based pricing model, Togai (https://www.togai.com/).
Increasing revenues by switching from homegrown to commercial SLM systems
While some businesses first think that developing their own Software Licencing Management solutions is cost-effective, they frequently find that doing so is more complicated and time-consuming than anticipated. Commercial SLM solutions are flexible, enabling businesses to swiftly adjust to market changes.
Manufacturers of building automation systems understood that software-driven income was the way of the future. At first, they explored developing their own system but ultimately chose a commercial SLM supplier. With assistance, the building automation systems were able to optimize their operations, implement tiered pricing structures, and acquire important client usage visibility, paving the way for future expansion.
Counterfeiting & anti-piracy will boost SLM’s growth
Concerns about piracy and counterfeiting persist in the era of cloud-based software. Protecting your products requires knowing who is utilizing your software. Tracking entitlements and licensing with software licensing management systems allows you to restrict access to software functionalities.
A seasoned manufacturer of video games and gaming equipment sought to safeguard their software and impose time-based licensing fees on their clients. They were able to offer multiple licensing choices while maintaining control over their goods and facilitating speedy software with SLM assistance.
Despite the sector’s bright growth potential for software licencing and entitlement management, a number of obstacles could prevent further development:
The environment of software licensing and entitlement management is changing quickly due to shifting consumer expectations, the proliferation of devices with embedded software, the ongoing fight against counterfeiting and piracy and data-driven insights. Adopting commercial solutions and purpose-built systems can help businesses succeed in this dynamic market, ultimately leading to higher income and customer satisfaction despite obstacles to overcome and myths to dispel.