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Is it Time for Change or Just a Change in Time? Download NowBill Hewitt, VP Global Industry Solutions Group, PeopleSoft
Enterprise software pricing continues to evolve as vendors and companies alike struggle with the model that will drive the most economic benefit for both sides. This presentation will explore the fundamentals of pricing, terms, and value in the enterprise software industry, and discuss the responsibilities of the participants in the licensing process, what models are working today, and how these models may evolve in the future.
Software Value Management and Key
Dan Stickel, EVP and General Manager, Macrovision
Software Value Management (SVM) is a stage of the software lifecycle focused explicitly on maximizing the value of one’s software. SVM is shared by both software publishers and their enterprise customers as they endeavor to maximize the value of their bits (that they’ve built, or that they’ve purchased). This presentation will present best practices in SVM and share some industry benchmarks based on a research study completed in September in conjunction with the SIIA involving 500 executives from the software and enterprise communities. It will cover the activities that comprise Software Value Management, provide examples of SVM in action, and conclude with key industry benchmarks that attendees can use to compare their own company’s position on the SVM continuum.
Looking Ahead: Variables, Views and
Cori Hartje, Director, Worldwide Licensing and Pricing
Value of Volume Licensing
Emerging technologies, such as multi-core processors, utility computing, and mobile devices, affect current and future licensing strategies. Many vendors face the challenges of managing the complexity produced by the many variables associated with licensing products and programs, and distributing them in a global market with many diverse customer segments. Software licensing needs to be flexible—and yet consistent—to address the variety of unique business issues that face global customer segments. This presentation will describe how Microsoft has approached the diverse needs of the global market and how licensing will need to adapt to future technologies.
The Recurring Revenue Revolution: How Much,
Amy M. Konary, Program Director of Software Pricing,
How Fast, and Know-How
Licensing, and Delivery, IDC
This presentation will focus on the software industry's transition toward recurring revenue models, illustrating the independencies between various factors driving for and against this transition and identifying the key milestones that should be observed along the way. It will discuss examples of steps that software companies are taking to build recurring revenue streams, including best practices and pitfalls to avoid when making a transition. Customer and financial community perceptions of annuity-based license models and software maintenance will also be examined.
Marketing Matters! The Re-Emergence of
Paul Wiefels, Managing Director, The Chasm Group
As the world slowly emerges from a global IT and telecommunications recession, one thing is certain: Purveyors of high technology—from the largest to the most promising venture-backed start-up—will have to work harder than ever to build and sustain customer acceptance and preference for their products and services. This presentation will discuss key challenges to effective marketing and market development, including helping you assess how vulnerable is your company to fundamental marketplace change, what is the current health of your product category and those categories related to yours, do you have a winning strategy, and can you execute and sustain your strategy going forward.
Product Management Best Practices: Know What You
Barbara Nelson, Instructor, Pragmatic Marketing
Need to Know to Price Your Products
Product Managers today are plagued with pricing issues, including how much should they charge for their products, what pricing models should they use, and how can they get Sales to stop giving products away. This presentation will explore what Product Managers need to know before they make important pricing decisions. It will introduce the Pragmatic Marketing Framework, a market-driven model for managing and marketing technology products, to help Product Managers become market experts and gain a better understand of their customers. It will also demonstrate how to use the Technology Product Assessment tool to assist Product Managers in making better pricing decisions.
Software Industry Evolution: Pricing and
Ken Berryman, Principal, McKinsey & Co.
Structural shifts in the software industry—such as consolidation, slower overall growth, and globalization of both demand and delivery—have affected the way software is priced and purchased. More attention to open source and the rise of utility-based models has also increased the complexity of software industry pricing. This presentation will review the likely changes for the buyers and sellers of software and explore how software vendors can maximize the value of their products while still meeting their customers increasing demands. It will also examine how software buyers should navigate through existing pricing models to balance strategic and operational need with cost.
Unifying Pricing across Product Lines Download NowErik Larson, Director of Product Management, Macromedia
New license models for software are proliferating, and the implications of subscriptions, term licenses, value bundles, and software as a service can be a challenge for vendors and confusing for customers—especially when more than one model is offered. This presentation will detail practical lessons learned and offer real-world solutions for packaging and pricing both enterprise and shrink-wrapped product lines.
Utility-Based Pricing: How to Make it
Thomas T. Nagle, Chairman and CEO,
Profitable in Enterprise Software
Strategic Pricing Group
While many software companies are looking to implement utility-based pricing models, most lack the critical elements necessary to develop a sound utility-based pricing strategy. This presentation will outline the key ingredients in developing a successful and profitable approach to utility-based pricing. It will highlight the critical elements required for success, including creating a utility-based pricing strategy that tracks to the quantifiable value the product provides customers, recognizing the way value changes across different customer segments and aligning utility-based metrics accordingly, and developing pricing metrics that are measurable, enforceable, and easily understood by customers.
Five Best Practices for Streamlined
André Bakken, Manager, Macrovision
Software and hardware publishers who implement electronic licensing to price, package, and protect their products still face the challenge of how to create seamless licensing processes for themselves, their channel partners, and their customers. This presentation will introduce the five best practices for streamlining the operations around licensing processes and will include examples of publishers that have implemented effective electronic licensing.
Enterprise Software Pricing Strategies to
Tania Goldszmidt, Vice President, Siebel
Meet Evolving Customer Requirements
Software License and Maintenance Pricing
Walt Baker, Associate Principal, McKinsey & Co.
Principles—Best Practices and Case Studies
Homayoun Hatami, Manager, McKinsey & Co.
Pricing is the single most important profit lever, and for many companies there is substantial upside to be realized through better pricing practices. Yet most technology companies devote fewer resources to pricing than to cost cutting or growth-related initiatives. This presentation will summarize software license and maintenance pricing best practices. It will present case studies to illustrate real-life approaches to overcoming software pricing challenges, discuss how software companies should price software licenses vs. maintenance services, and explore how to best harmonize software licensing and maintenance pricing policies and practices after a merger.
The Dynamics of the New Software Industry:
Ken Wasch, President, Software &
What It Means for Software Companies
Information Industry Association
Understanding license handling in its entirety is the decisive factor for the reduction of license costs. This presentation will put the fundamental ideas behind its individual tasks—including usage evaluation, cost allocation, and demand planning—into a common framework illustrating their relations and interdependencies. It will examine the benefits and opportunities arising from such a unified perspective and describe how to integrate them into one technical infrastructure. It will also describe a method for the distribution of overall license costs among the different user groups that work with these licenses.
SAP Case Study: Pricing and Packaging
Richard Yim, Director, SAP
Strategies—Improving Customer TCO by
Moving from Components to Suites
In March 2004, SAP introduced a new licensing and packaging model for its SAP NetWeaver platform that changes it from a component-based to a suite-based product. Previously, users who purchased NetWeaver had to buy components individually. By bringing all its components together into a single package with a simpler pricing model, SAP is bringing clarity to NetWeaver with a platform strategy that is more cost effective and beneficial to its users. This presentation will discuss SAP’s pricing and distribution strategies and how it affects its partner ISVs, especially those that sell into SAP's install base.
Rolling Out Licensing: Transitioning from
Manu Chauhan, Principle Product Manager, Citrix
With the introduction of its flagship product, MetaFrame Presentation Server 3.0, Citrix launched a new licensing infrastructure that addresses Citrix licensing needs now and into the future. This presentation will discuss the drivers and justification for license system changes, Citrix’s specific implementation of the Macrovision toolset, and considerations to make prior to transitioning to a new licensing infrastructure.
Inside BSA and the Beltway: What Industry and
Robert M. Kruger, Vice President,
Congress Are Doing About Piracy
Enforcement, Business Software Alliance
BSA conducts anti-piracy programs around the world on behalf of leading software publishers, including Adobe, Apple, Autodesk, Macromedia, Microsoft and Symantec. This presentation will give an inside view of how BSA’s anti-piracy programs operate, particularly in light of legal, technological, and marketplace developments. It will also discuss recent activity in Congress to combat piracy, including legislation to strengthen the hand of IP owners and one bill which, if enacted, would make it more difficult to rely upon technical protection measures.
IBM Autonomic Computing Solution Installation Download NowDavid Cole, Autonomic Computing Relationship
This presentation will provide a brief overview of IBM's Autonomic Computing and the constituent technologies and will discuss in-depth IBM's Solution Installation. It will also provide a summary of IBM's partnership with InstallShield/Macrovision in Solution Installation, describing IBM's plans for reducing IT complexity and InstallShield/Macrovision's plans for providing accompanying solutions.
What Keeps CIOs Up at Night Download NowRam Appalarju, Vice President, Adaptive
Enterprise Program, Hewlett-Packard
The pace of change today is phenomenal, forcing CIOs to try to balance the traditional goals of IT—better return on investment, higher productivity, and minimum risk—with the new metric of agility. An Adaptive Enterprise is one that can help bring balance to this equation, while managing change more effectively by linking business strategy with a company’s IT resources. This presentation will discuss why an Adaptive Enterprise is the right strategy for businesses today, what is driving companies to become more agile and adaptive, and where and how a company can begin to become more adaptive to get a better return on their IT investment.
Why We Must Move to Utility Pricing Download NowDan Griffith, Manager, Freescale Semiconductor
(a Motorola subsidiary)
Today’s time-based licenses and subscription-based licensing models are quickly running out of gas. They no longer provide vendors with the opportunity for additional revenue when license requirements increase, and on any given day they leave the customer with either too few software licenses or too many. This presentation will discuss how these license models evolved and why they are no longer effective. It will outline several variations of utility pricing, discuss their pros and cons, and explain how utility software pricing models can be a win-win for both the customer and the software vendor.
Best Practices in Internal Billbacks and
Fritz Kink, Senior Manager IT, Infineon Technologies AG
To reduce license costs, you must understand license handling in its entirety. This presentation will put the fundamental ideas behind its individual components—such as usage evaluation, cost allocation, and demand planning—into a common framework to illustrate their relationships and interdependencies. It will show the benefits and opportunities arising from a unified perspective and describes how to integrate these elements into one technical infrastructure. The presentations will also describe a method for the distribution of overall license costs among different user groups that allocates these costs in a comprehensible, non-arbitrary way.
The Pros and Cons of Various Pricing Models Download NowJill H. Jones, EDA Contract Manager,
Freescale Semiconductor (a Motorola subsidiary)
This presentation will evaluate various software licensing models by comparing and contrasting perpetual, time-based, and subscription licensing arrangements in order to determine when each is appropriate for business needs. It will focus on how software revenue recognition accounting rules drive both pricing and contract terms for both the vendor and the software user.
Best Practices for Application Preparation
Lynn Sweetwood, Vice President, Macrovision
The deployment of applications and patches is one of the most common—and important—functions of any IT department. Yet many IT teams fail to properly prepare their software packages for deployment, resulting in rollouts that crash mission-critical applications and drain IT resources. This presentation will discuss application packaging and management best practices that enable organizations to reduce their software deployment errors and costs. It will explain the value of migrating applications to Windows Installer, highlight the critical steps in creating reliable software packages and deploying tested patches, and explore ways for IT to centrally manage the entire process.
Doing More with Less: A Look into Software Licensing
Jay Blair, CSM Applications Engineer, Computer Sciences Corporation
at a DoD Super Computer Center
The Aeronautical Systems Center Major Shared Resource Center (ASC MSRC), one of the four supercomputer centers chartered by the Department of Defense High Performance Modernization Program (DoD HPCMP), has over 3,000 CPUs, 3 terabytes of RAM, and 40 terabytes of disk space, as well as over 150 software packages that encompass a wide variety of computational disciplines. The management of these codes would be a challenge for any organization with a healthy budget, let alone for the government. This presentation will detail some of the strategies that the ASC MSRC has used to enhance efficiencies in a time of dwindling budgets.
Software Capacity Planning: How to Budget for Future
Barbara Vervenne, Manager of EDA Software Business,
Purchases and Use Your License Usage Information
to Make Strategic Business Decisions
CAD Systems Engineering, AMD
This presentation will discuss the centralized license operations at AMD. It will examine how reports and measurements have been used over many years to track actual license usage for contract management, charge back allocations, and forecast future needs and spending, and how the entire process of budget and capacity planning with customers, management, and with vendors is enhanced by the availability of historical data.