Software Licensing Model Market Intelligence

Software Licensing Model Market Description

The global software licensing model market is expected to grow at a CAGR of 8 - 9 percent to reach $ 14 - $15 billion by 2023. Nearly 80 - 85 percent of the existing, as well as new suppliers will offer subscription-based software licensing models by the end of 2020. The pricing will be more competitive, and licensing will become more effective in the near future due to rapid technological developments and increased demand. Major suppliers of the software licensing models industry are IBM, Oracle, Microsoft, VMware, and SAS. The majority of suppliers charge an annual maintenance renewal of 20 - 22 percent, which is purely dependent on the requirements of the clients.

The report encapsulates the technological advancement and the evolution of software licensing models. The report also provides an analysis of the engagement models, which includes deployment models, software licensing metrics, supplier profiling & licensing models, KPIs, and negotiation pointers. The report further discusses the major drivers such as software revenue growth and cloud pay-by-usage growth in the industry, while also specifying the constraints in the software licensing model industry such as growth in low-cost solutions and pricing pressure.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Licensing Model Analysis
KPIs for Software Licensing Metrics
Negotiation Pointers
Supplier Profiling and Licensing Models

Software Licensing Model Market Trend, Analysis & Forecast

Category Intelligence on Software Licensing Model covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

Executive Summary
Evolution of Software Licensing Models
Licensing Model Description
Licensing Model Analysis
Deployment Models
Software Licensing Metrics
Supplier Profiling and Licensing Models
KPIs for Software Licensing Metrics
Negotiation Pointers

Global Market Outlook on Software Licensing Model

The global software licensing market is expected to grow at a CAGR of 8–9 percent to reach $14–15 billion by 2023.

About 80–85 percent of the existing, as well as new suppliers or entrants, will offer subscription-based licensing models by the end of 2020
SaaS is becoming a mandate for software suppliers to be included as an option to remain in the market
Pricing will become competitive, and licensing policies will become effective, due to rapid technological development and increased demand
About 35–40 percent of the applications will be delivered as installed software, thus avoiding the necessity of explicit installations
The existing licensing models are suited in the current scenario, but customer requirements play a vital role in choosing the best-fit for the organization
Majority of the suppliers uplift an annual maintenance renewal of 20–22 percent. This is purely dependent on the requirements

Software Licensing Metrics

Suppliers often play with metrics to create a win–win situation for customers as well as themselves. Factors considered for the following metrics are the standards, whether the right metric has been mapped with the product, cost-effectiveness, reasonable pricing for the customers, and value for price & features.

Evolution of Software Licensing Models

Current Models

Considering the customer’s demand and interests, three models currently exist in the market
The models are perpetual, subscription based, and consumption based

Mix and Match Models

Models that took investment, cost-effectiveness, and usage analysis into account
These models usually create a win–win situation for both customers and suppliers

Conventional Supplier–Client Models

This forms the basic foundation for all software licensing
Started with purchasing licenses per user, followed by multiple users and time limitation
Catering to increased demand and software usage, suppliers started to bring variety to meet the required demand

Partnership Models

Customers are provided unlimited access to the software
These models enabled effective long-term commitments

Grouping and Rental Models

With simpler pricing quotes for various groups (by users, by systems, etc.), these models tried to bring cost-effective solutions to customers
Rental models recorded the usage and billed the required amount to customers

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