Software Licensing Model Market Intelligence

Are you looking for answers on Software Licensing Model category?

Are you looking for answers on Software Licensing Model category?

  • What are the key trends in Software Licensing Model category?
  • Am I paying the right price?
  • Am I working with the right supplier?
  • What are the major challenges and risks in Software Licensing Model industry?
  • How is Software Licensing Model industry performing?

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Report Coverage

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

Market Size

Global Market Size

$14–15 Bn

CAGR

8–9 %

Table of contents

  1. Executive Summary
  2. Evolution of Software Licensing Models
  3. Licensing Model Description
  4. Licensing Model Analysis
  5. Deployment Models
  6. Software Licensing Metrics
  7. Supplier Profiling and Licensing Models
  8. KPIs for Software Licensing Metrics
  9. Negotiation Pointers

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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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