Embedded Software Monetization
More than ever, embedded software plays a central role in go to market strategies for intelligent device manufacturers who want to increase revenue and profitability. From telecom to test and measurement, from healthcare to industrial automation, embedded software along with electronic software licensing offers a promise and some significant challenges.
If you're like many other intelligent device manufacturers today, you're under increasing pressure to innovate, rapidly enter new markets, control costs, maximize incremental revenue from existing customers, and deliver a competitively differentiated customer experience. All without increasing operations costs.
That's where embedded software holds a significant promise. Increasingly, the value of your intelligent device comes from the firmware, or embedded software, delivered with your devices. The flexibility of software allows you to sell many differentiated products while streamlining your manufacturing process.
But how do you maximize the value of that software? How do you ensure that embedded software is fully monetized to deliver higher profits, greater customer satisfaction, and lower operations costs?
Challenge: protecting embedded software
Protecting your software R&D investment is critical to monetizing your platforms and ensuring a steady revenue stream. But the fact is paper- and trust-based licensing programs are no longer adequate. Moving to electronic licensing allows you to protect and grow your revenue, without complex changes to your manufacturing processes.
To maximize the value of embedded software, device manufacturers must overcome some key challenges, including finding ways to:
- Package and license different capabilities for different markets without using multiple devices
- Centrally manage and enforce customer entitlements
- Protect software from hacking and unauthorized use
- Cost-effectively deliver software updates to devices
To complicate matters, you need to solve these challenges without increasing manufacturing costs or negatively impacting product performance.
Promise: embedded software monetization with electronic software licensing
An emerging best practice that has gained momentum—and achieved startling success—for intelligent device manufacturers is electronic software licensing and entitlement management. Electronic software licensing was perfected by the software industry and has been used successfully for many years. For intelligent device manufacturers, it now offers a cost-effective and proven way to protect and fully monetize your embedded software and establish direct relationships with your customers through software-enabled feature activation.
With electronic software licensing, you can turn device features and device capacity on and off depending on the customer contract. This allows you to charge customers for the capabilities they want, while not charging them for capabilities they don't want. You are better positioned to conveniently offer upgraded or add on services to existing customers, simply by turning on those features or functions later. Electronic software licensing really helps you to more effectively capitalize on and leverage the power of your intellectual property, the embedded software, as a means of managing and monetizing the features and functionality it provides in your devices.
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