Written by Joe Poh – Doctoral candidate at UOW Malaysia KDU
Published on 23 November 2020
What is the driving force behind the need for software monetization? There may be various answers, but the growth of emerging technologies can be a critical factor. In the past two decades, computing servers have been loaded with multiple processors, most recently the quad processor. This provided an upgrade of performance that reduces the need for multiple servers, and indirectly lowered the traditional per-server perpetual software sales packaging. This led to software industrial vendors countering with a licensing model called “Processor License”.
Computing technology is growing, from personal devices like notebooks, tablets, smartphones, and wearables, to industrial usage of computers like industrial PC and embedded devices. Intelligent sensors categorized into IOT devices are seeing increased usage in industrial automation supply chain, workforce productivity, building management and healthcare, among others. A projected knowledge automation market could have an economic impact of approximately USD5.2 trillion to USD6.7 trillion by 2025.
Matured and high capacity broadband internet can now reach speeds of up to 1GB, even for home users. Hence, cloud computing and Software-as-a-Service (SaaS) are also becoming an increasingly attended segment as a subject of studies on monetization. Another key technology that emerged is from the Open Source community. Licenses are crucial to protect and monetize anyone who work based on open source libraries. An obligation to make sure the shared libraries remain open and the customized portion of software will need to be protected and monetized.
Software is no longer just running on a computer by multiple channels of devices; different operating system platforms, cloud storage, IOT devices, and other similar products need a whole new type of licensing package to accommodate commercial needs. It is projected that new revenue growth will be at 46% between 2018-2023 from emerging technologies.
Key emerging technologies drivers include:
- IOT Connectivity, software, and hardware
- SaaS + PaaS
- Robotics/Drones
- Augmented Reality (AR)/Virtual Reality (VR)
- AI platforms and applications
- Big Data/analytics
- Enterprise Social Software
- Next Generation Security
References:
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- CompTIA. (2020). Taking the Next Step. IT Industry Outlook 2020. https://www.comptia.org/content/research/it-industry-trends-analysis#:~:text=CompTIA%20projects%20the%20global%20information,a%20downside%20floor%20of%201.9%25.&text=As%20the%20largest%20tech%20market,global%20forecasts%20are%20inextricably%20linked
- Ferrante, D. (2006). Software Licensing Models: What’s Out There? IT Professional, Volume (8-7), 24-29. DOI: 10.1109/MITP.2006.147. https://ieeexplore.ieee.org/document/4042601
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- Thomason, M. (2019). Worldwide Digital Business Model and Monetization 2020 Top 10 predictions. #US44643119. IDC
- TIME dotCom. (2020). https://www.time.com.my/