SOFTWARE MONETIZATION
SaaS Monetization for Applications
Building a Software Monetization Approach for Today and the Future
Drive Recurring Revenue Models and Deliver Value to Customers
Software products’ transition to services and SaaS is growing across consumer software, business software and IoT offerings. Revenera empowers software suppliers and their channel partners with:
- A central system of record for who is allowed to use what and who is using what
- Automated fulfilment and enforcement of customer use rights
- Rapid revenue recognition
Software companies are racing toward SaaS deployments and subscription pricing models faster than ever - driving the growth of SaaS as “the largest market segment” of public cloud services, according to Gartner, which predicts that worldwide public cloud end user spending will be $122.6 billion in 2021 and $145.4 billion by 2022. Pausing to evaluate SaaS monetization strategy is essential for business growth.
The move to SaaS deployments and subscription licensing is here to stay. As found in the Revenera Monetization Monitor: Software Monetization Models and Strategies 2022 report, 59% of survey respondents expect that their use of the SaaS deployment model will grow in the coming 12-18 months. This trend brings numerous benefits for software producers and their end customers. Producers can offer better services, update and innovate faster, and offer more agile approaches to doing business and supporting customers. Customers benefit by not having to maintain local applications, not getting stuck on old versions, and not taking on the burden of day-to-day application management themselves.
HYBRID MODELS
IDC predicts 18.8% CAGR for subscription SaaS and PaaS offerings through 2025, but it also predicts 15.9% for subscription on-premise solutions. While the growth of SaaS is clear, so, too is the long-tail of on-premise software. Software suppliers need a central monetization strategy and systems across their product lines – regardless of deployment model – to reduce the complexity and operational overhead of managing products in silos. Revenera’s SaaS monetization solution enables suppliers to:
- Leverage existing investments in entitlement management and centralize back-office operations
- Maximize visibility into customer adoption of SaaS offerings
- Streamline processes for provisioning and fulfilment across product offerings and deployment models
Growth and Flexibility Through Market-Leading Entitlement Management
Software suppliers using a homegrown entitlement management solution for their initial SaaS offerings often face challenges that limit their flexibility in meeting changing customer needs. Suppliers should try to predict how many changes they expect in their monetization model once the product is launched. Simple models, often suited to low-cost products, are straightforward; changes to the price points, but not the underlying strategy, are to be expected. Business software monetization, however, often requires more iterations, change of metrics, and even customer-specific pricing. Revenera’s market-leading entitlement management enables suppliers to:
- Adopt and implement new packaging and pricing models without the complexity when entitlement management is hard coded into the SaaS application
- Reduce reliance on engineering resources to develop and maintain entitlement management functionality and enable a focus on core competencies and the delivery of new functionality and the reduction of support cases
- Provide deployment-agnostic access to applications with the same entitlement use rights giving customers the flexibility they demand
Building on Success for the Future
On-premise software suppliers achieving success with Revenera’s entitlement management solutions are well-positioned to transition to a SaaS strategy by leveraging their existing investment.
- Centralized entitlement management offers greater flexibility for customers and reduces friction in the transition from on-premise to SaaS solutions
- Insights into product usage and adoption inform pricing and packaging strategy and decisions
- Existing integrations with ERP, CRM, billing and analytics solutions provide proven processes to orchestrate the customer lifecycle
Resources
Video
Honeywell Transitions from Hardware Sales to Software Monetization
See how Honeywell achieved over 100% growth in annual software revenue while accelerating time-to-market and supporting hybrid models.
eBook
The Build vs. Buy Debate: A Product Manager’s Guide to Software Monetization Solutions
To build, or to buy? That’s the question technology companies typically face when evaluating solutions for software licensing, entitlement management, and compliance – and getting these factors right is essential for success. Download our guide to learn more and discover which option makes the most sense for your business.
Webinar
An Expert's Guide to SaaS Monetization
Watch us live to hear leading experts from Extensis, Infor, Agilent, and Revenera, as they share key insights and takeaways from recent SoftSummit sessions, all dedicated to SaaS monetization.
Webinar
Implementing Use Rights for SaaS: Identity and Access vs. Entitlement Management
Join Revenera’s Scott Niemann, Director of Product Management, for a discussion on the challenges of managing use rights for SaaS applications and review how providers are using Identity and Access Management (IAM) & Entitlement Management solutions
White Paper
The CFO’s Ultimate Guide to Successfully Transitioning to SaaS
This Guide is a valuable primer for CFOs (and those that need insight into CFO priorities) that are on the path to SaaS deployment and subscription monetization models. Learn which metrics to focus on, and how to change your business’ operations to accommodate SaaS.
White Paper
The Product Manager's Ultimate Guide to Successful SaaS Implementation
In this eBook learn how to facilitate the successful operation of a SaaS business, with flexible and hybrid monetization models, new packaging and pricing models, and streamlined processes for provisioning and fulfillment across product offerings
From the Blog
Blog
SaaS Migration Plan: Moving On-Prem Software to SaaS
Blog
Software Licensing Basics
Blog
How to Sell Software with Pay-As-You-Go Pricing
Software Monetization
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