Software companies are undergoing a seismic shift in how they monetize and deploy products.
Nearly two-thirds (59%) expect to deploy more software-as-a-service (SaaS) models; and 54% expect to increase subscription pricing models. Concurrently, perpetual licensing and on-premises deployments are growing much more slowly. Still, the increase in all deployment models reflects the hybrid nature of contemporary approaches.
The adoption of SaaS and subscription models are driven by a few factors. Looking forward, this includes entering a new vertical market (65%), eliminating revenue leakage (63%), easing customer adoption (61%) and offering usage-based models (61%).
As popular as usage-based models could become, relatively few software suppliers (26%) can gather product usage data “very well” and only 32% indicate that the price of their software is “totally aligned” with the value delivered to customers. This indicates areas that need to be strengthened in order to support overall monetization practices and goals.
Today’s reality is that software customers have varied requirements that are best met through a variety of both monetization and deployment models. Managing these offerings requires insights into users’ behaviors. The ability to deliver and support hybrid offerings can help software suppliers succeed. One thing remains constant: the need to deliver high-value products that help ensure customer retention.
The 2022 Revenera Monetization Monitor: Software Industry Survey was conducted by Revenera from mid-April through mid-July 2022. This research project looks at software producers’ software business models, pricing, usage and transparency. The survey was undertaken globally. Job levels of the 261 survey respondents were: director and above (31%), manager/team leader (35%), and individual contributors/consultants (34%).
Read the full report by Revenera.