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Gartner research predicts fall in software licensing costs

Gartner's research predicts that software licensing fees are set to fall in the next decade.

Gartner's research predicts that software licensing fees are set to fall in the next decade.

An excerpt from Silicon:

In a research note, Gartner VP William Snyder said: "Up until now the unique nature of the software market has meant that buyers had very little negotiating power after the initial purchase of a software license. We expect those dynamics to change considerably over the next five to 10 years giving CIOs and software procurement officers more bargaining power while potentially reducing software vendor profit margins."

Several emerging trends, such as software-as-a-service, SOA (Service Oriented Architecture), and low-cost development are expected to stress traditional software margin structures.

Alternatives are emerging at a rapid pace, giving software buyers greater choice and hence additional bargaining powers.

How well do you find the emerging trends syncing with your enterprises licensing deals?

3 comments
pr.arun
pr.arun

How well do you find the emerging trends syncing with your enterprises licensing deals?

paulharris
paulharris

I am a software developer at a small firm in the process of developing an effective licensing strategy that promotes viral adoption, but limits excessive piracy. Any thoughts on solutions or strategies in this area?

gdufficy
gdufficy

Paul, Regarding a licensing strategy, consider third-party licensing technologies that allow the balance between copy protection and casual sharing to promote word-of-mouth marketing. Piracy is a huge problem worldwide for publishers and device-based software authentication is currently the best approach as it locks the user?s machine to the authorization to confirm identity. Complement this with the ability to audit piracy on a global basis using technology from a company such Uniloc which pushes a product called SoftAnchor. Uniloc also allows you to use the piracy data, graphically defined by region (country, continent, etc.) and throttle the licensing parameters to adjust for areas of aggressive piracy. This also allows the loosening of licensing restrictions in areas of lower piracy to promote viral product marketing and greater sales. There are a few good solutions with SoftAnchor that strike that balance between polite copy protection and viral awareness. It has global piracy auditing, license auditing and device-based authentication and is one of the solutions to put on the short list ? we use it here. I would also recommend a solution that makes it possible to implement and maintain secure, embedded product activation in-house. You definitely want embedded seamless security that provides unlimited tripwires and validation checkpoints. Hope that helps, Gerry Dufficy

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