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The Next Generation of Software Business Models

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Recent advancements in cloud storage, the Internet of Things (IoT) and virtualisation demonstrate how incredibly fast technology is advancing. Business software is also changing with models predicted to be more concerned about growth through renewable streams of revenue than IP licencing or protection.

Software Purchasers to Demand Greater Transparency

In recent years no one knew what contributed to software systems unless they discovered it for themselves. In addition to using Software Asset Management tools (SAM) purchasers are expecting producers to combine more transparency with easier usage and assistance. Producers should be reinforcing their customer relationships by revealing the true extent of their software.

Smarter SaaS Management

The transfer to SaaS of software producers will lead to new products. On-premises applications will still be here for some time, but expect some hybridisation. Companies will be able to present their customers with easy to use self-service systems through seamlessly integrated software. If varied deployment models are in use, they’ll be connected to centrally operated software.

Opex Growth as Subscription Increases

Transfer to Opex models is about to happen. Many device and ISV manufacturers have already transferred to subscriptions and will include repeat revenue models. There should be an increase in renewal management, automated subscriptions and subscribers. Consider the renewal procedure as assured when subscriptions commence by providing software of good value.

Increase in Customised Products and Strategies for Monetisation

Customers will continue to seek products that enable them to purchase only the features they want. There’ll be an increase in modular packages and flexible monetisation such as multiple licencing. Expect an increase in hybrids such as pricing SaaS apps for each user and additional fees for online storage of data.

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