Application Usage Management Survey: Software Licensing & Market Risk – A New Perspective for ISVs

Survey Background

The Application Usage Management survey was conducted by Flexera Software with input from IDC’s Software Pricing and Licensing Research division under the direction of Amy Konary, research vice president -software licensing and provisioning at IDC. This annual research project looks at application usage management trends and best practices. The survey reaches out to executives at application producers (software vendors and intelligent device manufacturers) and enterprises who use and manage software and devices.

Methodology and Sampling

The data contained in these Application Usage Management reports is compiled from three separate surveys, one targeted for independent software vendors (ISVs), one for intelligent device manufacturers, and one for end-user organizations that consume enterprise software. More than 750 respondents participated, including executives and IT professionals from 455 ISVs, 127 intelligent device manufacturers and 169 enterprise organizations.

Survey Demographics

Location of Respondents

Of the 750+ respondents to the survey, 56% reported their division headquarters as being located in the United States. 6% were from the United Kingdom, 5% from Canada, and 4% were from India, Australia and Germany.

Respondents’ Vertical Markets

Respondents of the Application Usage Management Survey fell across a wide array of vertical markets. 29% were from technology companies, 18% were from business and consulting services, 8% each from healthcare and financial services, and 7% each from government and financial services.

Most ISVs Have Not Yet Implemented Best-in-Class Software Licensing and Entitlement Management Technology

To compete and win today, software vendors must focus on strategic imperatives. They must go to market faster with differentiated product offerings, ensure they are fairly compensated for their solutions, make every dollar spent count, and retain every single customer. All of this must be done while facing substantial hurdles. Software licensing and entitlement management are usually not top of mind for most ISVs, but increasingly implementing best-in-class licensing technology is a strategic imperative. Software Licensing and entitlement management standardization and technology help vendors go to market faster and ensure fair compensation for their products. Failure to implement best practices and technology in this area can substantially impact an ISVs’ larger strategic imperatives and impede their ability to compete.