Featured Article from Software Licensing

Software licensing is a topic that has many layers; those in the industry are aware of the challenges that come with the ever-changing models of how and when software is used. Among the concerns of developers and the companies that offer these software tools is how to stay current with software monetization. Indeed, software licensing goes far beyond just buying software and installing it and maintaining a license.

Organizations are tasked with staying compliant within the confines of licensing laws while developers are protecting their products to keep revenue flowing. It seems challenging to keep up with how things have changed, from subscription-based models and how they compare to traditional perpetual licensing. How does one maintain software renewal rates when there is no set standard to how software is used?

Flexera Software knows a thing or two about this subject; the software licensing experts have released part I of a series of posts dealing with the challenges of renewal success and how to overcome them.  The list is beneficial for those looking to understand the ins and outs of software licensing and renewal.

As the company notes, it’s helpful to have a valuable product and have the maintenance of said product clearly outlined at time of purchase. Enabling automatic maintenance purchases, and offering renewal dates for self-service customers for budget reasons all fall under the scope of mitigating what’s known as “maintenance leakage,” a common issue with software monetization. According to the post, this means that more customers have access to the “latest version than customers on active maintenance.”

For customers, it’s helpful to know that a perpetual license doesn't expire. Once you purchase it, you have rights to use the software for as long as you like. A term license expires after a specified period of time (often one year) and must be periodically renewed. For developers, renewal is a little more complicated, but Flexera Software offers helpful tips to overcome these challenges.

Software licensing is a complicated topic, but knowing a little about software licensing can help you make sense of the fine print and monetization issues that come with it.