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Flexera Software Announces 2009 Key Trends in Software Pricing and Licensing Survey
Reveals Growing Trend for Usage-Based Licensing Among Enterprise IT and Software Vendors but Disparity in Preferred Enforcement Models Among Other Findings
| Source: Flexera Software
SCHAUMBURG, IL--(Marketwire - November 16, 2009) - Flexera Software™, the
leading provider of software license, entitlement, installation, and
application readiness solutions, today announced results from the 2009
Software Pricing and Licensing Trends Survey, the fifth annual assessment
of key issues and trends on the minds of software vendors, high-tech
manufacturers, and enterprise IT executives and managers. This year's
survey of 306 participants, prepared jointly with IDC, found that software vendors and their
enterprise customers are moving towards a preference for usage-based licensing, entitlement, and enforcement versus traditional licensing methods. However,
while the survey revealed areas of converging opinion, disparities remain
in how the parties view software entitlement and compliance management, as
well as how well enterprises are able to track and monitor usage of those
licenses compared to where they believe they are today.
"The 2009 Software Pricing and Licensing Trends Survey is especially
noteworthy because despite some disconnects in how we get there, it
reflects the growing recognition that usage-based licensing, entitlement,
and enforcement models can simplify management and save money for customers
while ensuring software vendors accurately and optimally capture the value
their applications offer," said Randy Littleson, senior vice president of marketing.
"We believe the current economy and the need to control costs is fueling
this trend, but that once adopted, these usage-based models will continue
to increase in importance even as the economy recovers."
"The survey shows there are some interesting points of agreement as well as
disagreement between the publisher community and their enterprise
customers," said Amy Konary,
Director of Software Pricing and Licensing Research at IDC. "Enterprises
appear to want more choices, more flexibility in how they are allowed to
license and consume software; software producers agree but seem to be
limited in tools and technologies to enforce entitlements across all of
those choices. According to the survey, both parties have a desire to move
closer together with better insight and information into how software
investments are being utilized."
Key Findings
-- Usage-based Monitoring on the Rise, But Appropriate Tools Not Yet
Implemented: While 58 percent of software vendors report monitoring
customer software usage, an 18 percent increase over 2008, the majority
have only rudimentary tools to track usage, with 28 percent using
home-grown tools and just six percent using robust third-party tools.
Meanwhile, while 61 percent of enterprise IT managers believe tracking
software usage is important or very important to reduce costs, minimize shelfware, and ensure compliance, most lack the appropriate tools to do so.
-- More Flexible Licensing Preferred by Both Sides: In the last year, 43
percent of software vendors have adapted their software licensing approach to make it more flexible,
citing improving customer relations, generating more revenues, and
accelerating the sales cycle as their primary reasons. But they also say
they lack the tools to support these strategies.
-- More Choice in Pricing Anticipated, including Usage-Based Model:
Software vendors overwhelmingly prefer Concurrent User (53 percent) and
Seat (53 percent) pricing. Enterprises also prefer Concurrent User pricing
(53 percent) but don't like Seat pricing (10 percent). By 2011, 35 percent
of software vendors expect to offer a usage-based pricing model.
-- Growing Enforcement Disconnect Exists: Enterprises overwhelmingly prefer
Network Licensing, but only 28 percent of software vendors currently use
it. Meanwhile, 28 percent of software vendors still have no means of
enforcement.
-- Ready for an Audit...or Not: While 50 percent of enterprise IT
respondents claim they are confident they could survive a software audit successfully, that leaves half of the
respondents who believe they would fail an audit.
-- The Over/Under Licensing Conundrum Continues: 53 percent of enterprises
say some software license spend is
associated with application over-use, and since this is a highly sensitive
topic, these numbers may be low. On the other side, a very significant
number, 76 percent, say there is a level of software under-use/shelfware.
-- Value versus Price Perceived Differently: Only 45 percent of software
vendors believe their current pricing and licensing strategies are
effective or very effective at capturing the value their software provides
to customers, while most customers are satisfied with the value they are
receiving for the price for major application categories.
Register now to receive the complete survey results at
http://www.flexerasoftware.com/2009KeyTrendsSurvey.
About the 2009 Key Trends in Software Pricing and Licensing Survey
Since 2004, Flexera Software has produced the Key Trends in Software
Pricing and Licensing Survey in conjunction with the SoftSummit Conference,
and several industry partners such as the Software and Information Industry
Association (SIIA), the Centralized Electronic Licensing User Group
(CELUG), and Electronic Design and Automation (EDAC). This year Flexera
Software joined forces with IDC for the survey. Amy Konary, director,
software pricing and licensing at IDC, prepared the analysis and presented
these findings at the 2009 SoftSummit conference in San Francisco.
Executives and managers at 306 independent software vendors, high-tech
manufacturers, and enterprises participated in the survey.
About Flexera Software
Flexera Software, formerly Acresso Software, maximizes the value of the
software the world develops and uses. The leading provider of software
licensing, entitlement management, installation, and application readiness
solutions, Flexera Software is trusted by more than 80,000 customers who
use our solutions to drive cost and time from the software supply chain
-- from software vendors and high-tech manufacturers to enterprise IT and
government. For more information, please go to: www.flexerasoftware.com