The problem of software manufacturers is not piracy, is the flexibility
The theft of intellectual property in software is not something new; software companies are facing this problem for decades. As in the case of the theft of ideas or reverse from competition engineering, or pure piracy (i.e., the use of software without license), software companies are accustomed to use techniques to combat these challenges. Many companies have the feeling that you need to choose between security and the efficiency of your business. But a simple way of fighting piracy and achieve an appropriate balance is to apply a strategy of monetization of software «tailor-made» and a process of licensing and rights management that are flexible enough to meet the needs of new business from customers and their requirements security, while providing strong protection of intellectual property.
The study shows clearly that software manufacturers need solutions that address the four key elements of the monetization of software: an efficient packaging, control access and regulatory compliance, management and automation of administrative systems and the monitoring of the use.
As software manufacturers are facing a more mature market, new expectations of customers about their experiences and the threats posed by open source, the real Achilles heel for many of them is the potential loss of income. Therefore, it can be argued that the main problem is not piracy, but immobility in the way software vendors designed and granted licenses for their products. And the irony is that the manufacturers know also. In this sense, almost 84% of the respondents considered that best software design techniques could generate more income.
What is clear is that software manufacturers desperately need flexible licensing models. However, although they are aware of this, 61% of surveyed manufacturers admitted having difficulties to achieve set a price and design your applications flexibly. Also, 56% of respondents flexible software design process and adapt its product portfolio costs much. This translates to the loss of important opportunities to generate revenue.
In addition to issues related to flexible licensing models, control access and regulatory compliance can also be a problem area. The lack of control over software is an important reason of loss of revenue. However, although manufacturers recognize that their software can be threatened, many do not sell licenses of compliance or tools of intellectual property protection mechanisms.
As the industry evolves, software manufacturers are beginning to identify other barriers to potential income more frequently. Improving administrative capabilities not only drains resources, they may require an enormous investment of time. It is essential that companies ensure that their licensing processes are closely aligned with other administrative systems in order to implement a strategy of monetization of software that helps prevent the loss of income.
Another issue that contributes to aggravate the problem of software piracy is the difficulty to carry out effective monitoring of the use. Given the number and variety of devices available to consumers today, software manufacturers are under great pressure to ensure that their applications are compatible with the entire spectrum of devices as well as to offer a variety consumer offerings, from subscriptions to the pay per use. Unfortunately, this means that the effective and accurate monitoring of the use of the software in the entire spectrum of devices can be a challenge.
Having adequate systems of business intelligence is an essential part of the process of decision-making concerning new markets, design and management of internal resources. The ability of software manufacturers to determine who is using your software, when, how and to what extent, is a critical factor. Without the ability to access this information, organizations lack the necessary data to promote and maximize the opportunities of investment in products, packaging strategies and other vital decisions for business.
It is time that software vendors support what is the real source of the problem and establish an effective strategy of monetization of software that is integrated into their business strategy and based on the following points: software design at the right price for certain markets / segments, as well as proper control of software, a streamlining of administrative systems and an efficient tracking of use. In addition, they must ensure measure the effectiveness of their strategies, collect the necessary information and making changes that are relevant. Forget about the ambitious goal of recovering all of 50% of the lost revenues; If improving the design achieves recover only 10%, the effort already there will be worthwhile.
For more information about The State of Software Monetisation study by SafeNet and the SIIA, click here.
