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Research Report: Software Licensing 2016: Seismic Shifts – Shaky Foundations

Key Findings from Flexera Software’s Annual Software Monetization and Licensing Survey

The enterprise software marketplace is undergoing a massive transformation as the pricing and licensing models dictating how software is bought and sold evolve. Fueled in part by shifts in customer demand and in part by rapidly changing technology, some application producers are poised to reap windfall profits from the new software pricing and licensing models emerging, while others risk being left behind. Report findings include:

  • Only 43% of producers say perpetual software licenses contribute to half or more of their revenues
  • 70% of producers will change their pricing and licensing models within the next two years
  • 36% of producers say that less than half of their applications are delivered as traditional installed software
  • Within the next two years producers plan on changing their licensing policies to accommodate new technologies:
    • Cloud (49%)
    • SaaS (46%)
    • Virtualization (47%)
    • Mobile Platforms (55%)
  • 73% of producers boast their pricing and licensing policies are effective, despite this confidence:
    • 51% of those surveyed admitted they don’t track customer usage
    • 45% don’t audit customer usage
    • 55% don’t have technology in place to track customer usage of their products
    • 42% say their customers have challenges determining which software products they’re entitled to use

Infographic – Software Licensing: Siesmic Shifts, Shaky Foundations

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