Companies are investing in software largely for financial and security benefits, whether they are turning “dumb” devices into smart ones or shifting business models. Simultaneously, consumers want more options and control of their devices and data, especially as the Internet of Things (IoT) continues to develop. These converging mindsets are helping propel a growth in software development, with a particularly strong emphasis on monetization.
The U.S. Bureau of Labor and Statistics anticipates a 17% increase in employment between 2014 and 2024 for software developers. This demand indicates the transition to a software society will be gradual; nevertheless, it is accelerating thanks to software’s ability to monetize, customize, and create a responsive digital environment. As companies evaluate their software development strategies, it’s clear that monetizing their investments has emerged as a prime focus. The following four trends will continue to further drive the software monetization market:
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New Business Models and Revenue Streams
The transition to more software-based business models will continue to rise in 2017 and beyond. According to a recent poll of our customers, the need to adopt a flexible business model and simplify product development is one of the main reasons software—and more precisely, monetization software—is a priority. With this in mind, it is crucial that hardware companies expand their current market base, adapt to customer demands, and (most importantly) utilize data collected from devices to develop new revenue streams.
When it comes to a shift in business models, subscriptions and usage are key. Offering customers a “pay-as-you-grow” model or subscription options not only opens the door to potential new customers, but also helps in product development. Designing one product and adding software monetization means hardware makers can upgrade device functionality remotely to allow for different features, functions, and price points. This is all made possible by licensing and usage-based technology enabled by the software.
Capitalizing on the IoT
Monetizing the IoT is one of the biggest challenges and drivers of software monetization. The key to realizing the value of the IoT is not just inventing or selling a new connected gadget. Rather, focus should be placed on the software and services a connected device enables, in addition to monetizing and capturing that additional value.
That said, we are seeing, and will increasingly see, more device makers integrating software technology to monetize their products and the data they generate. Adding a monetization…