Both parties in the IT buying process desire a fair deal based on value, but too often wind up feeling exposed due to complexity, uncertainty, and risk surrounding software assets over time. Traditionally ISVs have relied heavily (or even exclusively) on a single-threaded approach to remediating the problems posed by the IT buying process. In that vein, the most commonly accepted industry approach is arguably the audit. However, ISVs should explore a portfolio approach to monetizing their software. A portfolio model would yield greater overall flexibility in navigating the spectrum between the sins of the past (revenue recapture) and the forward business relationship (sales enablement), and would break that “one size fits all” paradigm of audit for everyone...
Read the Full PostThe “pop-in,” one of the many terms that have become part of our popular lexicon that we can attribute to Seinfeld, is a way to describe an unannounced visit that is often unwelcomed by its receiver.
Read the Full PostYou have actionable data on where your software is being used illegally and where your customers are not in compliance with their entitlements. You want to recover that lost revenue – fast.
Read the Full PostPicture this: You, as an independent software vendor, sell business solutions to Santa’s Claws, a small, but thriving vending machine manufacturer that specializes in those delightful machines with the claws that (don’t ever) grab stuffed animals. Joe Santa, the owner, loves your software, and takes pains to make sure his 80 users are licensed appropriately, and that he is within his entitlements.
Read the Full PostIndia is the fastest growing economy in the world. Last year, it rocketed past China with a growth rate of 7.5 percent, buoyed by the rising wages, lower-skilled labor shortages and shipping costs associated with doing business in China.
Read the Full PostIt may seem counterintuitive, but the fact is that more customers are actually demanding that their ISVs provide licensing management services as part of their software partnerships. Customers are hip to the benefits of compliance in terms of maximizing the value of their investments – and are coming to view license management as a value-added service from their ISVs.
Read the Full PostSome number of years ago, a colleague of mine was on a Royal Caribbean cruise – Adventure of the Seas – a decent-sized (1,020 feet) ship. As they approached a port of call in St. Thomas, the captain of this substantial vessel felt compelled to call attention to a nearby “boat” also in port – the 454-foot Rising Sun yacht that at the time belonged to Larry Ellison.
Read the Full PostIt starts playing in my head as soon as I sense an infringer is ducking my sales team during a piracy engagement… “What I do have are a very particular set of skills, skills I have acquired over a very long career…”
Read the Full PostSoftware licensing audits are on the rise – such that the likelihood of your business enduring one is almost certain. Businesses have a 68 percent chance of being audited by their vendors in a given year, according to a 2014 Gartner study.
Read the Full PostWhen confronted on their misuse, the reasons pirates give for deploying unlicensed software boil down to two categories – "we didn’t know it was happening," or "we needed it to do our jobs and didn’t see another option." Clad in their excuses, when that initial letter of noncompliance crosses their desks, most targets start the process of buying legitimate licenses on the defensive.
Read the Full PostIt was a a pleasure to attend the Compliance Manager Summit in San Francisco last week. The Software Compliance Group presented "Use Big Data to Boost Compliance Results." and it was good, interactive session.
Read the Full PostOn March 8, I will be presenting a session titled, “Use Big Data to Boost Compliance Results” at the Compliance Manager Summit in San Francisco. I'm going to cover how you can leverage both existing internal data and software usage analytics to make more informed decisions about your compliance engagements.
Read the Full PostThe economic boom that is sweeping the BRIC countries certainly doesn’t include Russia right now. Economic sanctions and the low price of oil (upon which the Russian government depends for 50 percent of its budget) have contributed to a weak currency. Wages are declining, and Russians aren’t spending money. And there are unique policy challenges for software publishers. Russian government agencies have to prove they need foreign software before they can buy it, and can only make such purchases if there is no equivalent Russian software.
Read the Full PostAny fan of National Geographic’s “Wicked Tuna” knows the melodic beep the boat’s fish finding software makes when one boats zeroes in on a potential catch.
Read the Full PostGlobal mergers and acquisitions are on pace to set an all-time record, surging toward a $4.58 trillion mark for 2015 that shatters even 2007’s staggering numbers, according to a recent Wall Street Journal article.
Read the Full PostI sat at my desk, hesitating to press send. There are few things that give me pause when trying to sell something I think will accelerate a client’s business, but this was different. This was an audit request.
Read the Full PostCompliance cases are not for the meek. Each case is unique and you never know how the client will react when approached about unpaid software. This is why you need a professional third party to navigate this sensitive subject. There is a large amount of preparation involved: understanding the clients' rights, privacy law, vendor license agreement, entitlements, and more. The bar is high before you can even begin the conversation.
Read the Full PostOver the years we have dealt with various software vendors on countless software infringement cases globally. Even though no case is ever identical, we have seen a growing trend of the same excuses being used over and over by the software infringers. As boastful as it sounds, there aren’t a lot of piracy excuses we haven’t already heard. Today, we’re going to review the top reasons we hear why people are using unlicensed software.
Read the Full PostIf you received a letter from the Software Compliance Group (SCG) you are most likely a senior official in your organization. The reason for our letter is to foster constructive dialogue with your firm about a sensitive matter: unlicensed software usage.
Read the Full PostEarlier this month, I participated in a webinar hosted by our partner Revulytics that focsed on the different approaches to license compliance that software companies can take. I discussed four main approaches that we use at SCG: inside sales, legal, audits, and raids, and explored client case studies that illustrated how those approaches work in practice.
Read the Full PostCarrying out a successful software compliance raid can sometimes require mountains of paperwork and an understanding on how to navigate the legal waters of each region.
Read the Full PostWe often say that you want to approach your customers with a carrot, not a stick. By creating an escalation process, you can minimize any negative impact on the relationship.
Read the Full PostFocusing on easier-to-convert regions like North America and Western Europe can absolutely help you drive new license revenue fast (the United States is a top three offender for unpaid software use), but if you want to drive next-level revenue, you need to have a revenue conversion plan for emerging markets.
Read the Full PostUnlicensed software is a multi-billion dollar problem for the software industry. Despite this, companies that take a pro-active approach to identify the users of their unlicensed software have a significant opportunity to recover revenues and add to their top-lines.
Read the Full PostNot every infringing organization should be approached the same way. There are different ways to respond to unlicensed use, and understanding each scenario and how to proceed is essential. There are several different pieces that can make up your revenue recovery ecosystem.
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