Hardware Companies Face Unique Challenges in Growing Software Revenue
IDC Report Discusses Vendor Needs, Strategies and Provides Essential Guidance
Device Manufacturers Find Value in Software Monetization
With shrinking margins on hardware sales, intelligent device manufacturers are increasingly looking to leverage the embedded software within their devices in various ways. However, in the past, this software may have been given away with the hardware or bundled with the hardware in such a way that the value of the software was not called out separately. Beyond the challenges of establishing value and developing a pricing scheme, these firms find that software licensing is a lot different from selling hardware.
According to IDC, intelligent device manufacturers are finding the value in monetizing or licensing their software:
- Provides an additional high-margin revenue stream
- Protects intellectual property (IP) from misuse
- Simplifies product packaging while allowing for more flexible configurations
- Lowers inventory costs by decreasing the number of SKUs needed to satisfy unique customer demands
Learn More About the Challenges Hardware Companies Face in Growing Software Revenue
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