The document discusses the opportunities and challenges of monetizing software capabilities in the Internet of Things (IoT). It notes that the IoT market will be huge, with $1.9 trillion in economic value and 26 billion installed units by 2020. However, companies risk losing 10-20% of revenue without proper software monetization solutions to manage licensing, entitlements, delivery, updates, and analytics. Relying only on ERP systems risks high costs and lost revenue. Instead, the document recommends leveraging purpose-built software monetization solutions to drive scalable, agile, and efficient results.

1. BUILD V. BUYBUILD V. BUY
Software Monetization Capabilities in the IoT
THE IoT
OPPORTUNITY
IS HUGE
* Source: Gartner, Forecast: The Internet of Things, Worldwide, 2013, 18 November 2013
** Source: Flexera Software Global Consulting Services
LEVERAGE PURPOSE-BUILT SOFTWARE
MONETIZATION SOLUTIONS TO
DRIVE RESULTS THAT ARE SCALABLE,
AGILE AND EFFICIENT.
KEY PROCESS
AREAS FOR SUCCESS
Business Needs
• Monetize software
• Stop software abuse
• Needed reporting and statistics
• Support new business models
Solved with Flexera Software
• Prevented illegal copying
• Monetized product versions &
additional features
• Deeper understanding of customer
base with installed base info
• Enabling product variants through
license keys
LICENSING &
SECURITY
ENTITLEMENT
MANAGEMENT
DELIVERY &
UPDATES
IN-PRODUCT
ANALYTICS
Transforming to a Software-Centric Business
SUCCESS STORY:
FACIAL X-RAY AND IMAGING
4
“Simplified licensing, faster
provisioning, improved
usage visibility, and the
ability to propose the right
solutions based on usage.”
Alfons Marquez, VP
“Most application producers
don’t get how critical
licensing and entitlement
management is for revenue
generation – we weren’t
going to make that mistake.”
Josh Hartung, CEO
Click Here For
IoT Resources from Flexera Software
WHY WOULD
you build software
monetization
capabilities or
rely on your
ERP and RISK
LOSING-OUT?
value Explosion:
The Internet of Things
will result in
$1.9 TRILLION
in global economic value-add
through sales into diverse
end markets.*
Population Explosion:
The Internet of Things will include
26 BILLION
units installed by 2020.*
revenue Explosion:
The Internet of Things product and
service suppliers will generate
incremental revenue exceeding
$300 BILLION
by 2020.*
10%
revenue leakage
from poor visibility into
entitlements**
$700K
average cost
of customer
support incidents**
20%
drop in revenue
if device manufacturers fail to
implement a licensing & entitlement
management system*
$500K
average cost
to migrate to newer
ERP versions**