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Users demand flexible licensing from software vendors

End users frustrated with traditional, rigid software licensing, according to Gemalto report

Users demand flexible licensing from software vendors
Users are looking for online software delivery, metered usage and device-agnostic licensing.

Software vendors and intelligent device manufacturers need to adopt flexible and adaptable licensing and packaging techniques in order to meet the evolving needs of customers, according to Gemalto's State of Software Monetisation report.

Released today, the report said that 85% of enterprise customers thought that software vendors need to constantly adapt to changing market needs. More specifically, 83% of respondents said that flexible software packaging and accessibility across multiple devices are extremely important to them. In addition, four out five believed that software needs to be future-proof to be successful.

"The way that software is consumed is changing - whether users only want certain features, to use it on the device of their choice, or only want to pay for what they use," said Shlomo Weiss, senior vice president, Software Monetization at Gemalto.

"Independent software vendors (ISVs) have to keep up with the changing demands of their customers. We see that piracy, reverse engineering, and deliberate and unintentional misuse are all still monetisation concerns for ISVs. However, now more than ever, delivering software in ways that customers want to consume it is critical for creating a user experience that sells."

Meanwhile, the report said that intelligent device manufacturers are still finding monetising their software challenging, particularly when it comes to back office tasks and licensing enforcement. According to the report, only one in 10 of these manufacturers reported no licensing operations challenges. The most reported challenge was the cost of renewing and managing licences (87%), following by time spent renewing and managing licences (83%).

According to the report, enterprise software consumers expressed their frustration with traditional, rigid software licensing, packaging and delivery options. They are increasingly looking for online software delivery, metered usage and device-agnostic licensing.

Only 10% of enterprise respondents claimed that their organisation is not experiencing challenges with their software licenses. Among the remaining respondents, top licensing challenges included inflexible license agreements, long customer on-boarding and lost licensing keys.

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