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IDC FutureScape: Worldwide Software Business Models and Monetization 2017 Predictions

IDC FutureScape: Worldwide Software Business Models and Monetization 2017 Predictions

This IDC study discusses the top 10 predictions for worldwide software business models and monetization for 2017."As organizations look to meet emerging customer requirements and respond to competitive market pressures, we expect that flexible, digitally centric business models like those that have transformed the software industry to become a critical component of future growth for all kinds of organizations," said Amy Konary, program vice president for SaaS, Cloud, and Software Business Models at IDC. "As such, organizations will not only undergo changes to the way that they purchase software but will also change the way that they price and package their products. The business model changes that the software industry has experienced will be replicated in other industries. IDC expects that many companies outside of the traditional software industry will soon receive a crash course in the challenges and opportunities of software monetization."

Please Note: Extended description available upon request.


IDC FutureScape Figure
Executive Summary
IDC FutureScape Predictions
Summary of External Drivers
Predictions: Impact on Technology Buyers
Prediction 1: In 2017, at Least Five Major Software Providers Will Announce Plans to Roll Out a New Licensing Program Specifically Designed to Simplify Customer Licensing
Associated Drivers
IT Impact
Guidance
Prediction 2: By the End of 2017, 50% of Software Providers Will Offer Flexible Monetization Approaches, Such as Consumption-Based Pricing
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2018, 60% of Manufacturers of Connected Devices (Automobiles, Medical Devices, Home Automation) Will Generate Recurring Revenue Via a Software-Based Offering or Service
Associated Drivers
IT Impact
Guidance
Prediction 4: By 2019, More than 50% of All Industries Will Price and Package Their Offerings as Services with Flexible Subscription- or Consumption-Based Pricing Models
Associated Drivers
IT Impact
Guidance
Prediction 5: By 2019, 25% of Organizations Will Offer Personalized Pricing Structures Made Possible Through Customer Behavior Tracking Technologies Like Telematics
Associated Drivers
IT Impact
Guidance
Prediction 6: In the Next 24 Months, Moving Workloads from On-Premises Deployment to the Cloud Will Trigger Audit Requests from These On-Premise Vendors 50% of the Time
Associated Drivers
IT Impact
Guidance
Prediction 7: By 2018, Despite the Hype, Less than 10% of Organizations Will Adopt Outcome-Based Pricing for Their Critical On-Premises Software
Associated Drivers
IT Impact
Guidance
Prediction 8: By the End of 2016, 100% of Organizations Will Have a Migration Plan in Place to Shift Spending from Perpetual Software Licenses to Subscription-Based Pricing
Associated Drivers
IT Impact
Guidance
Prediction 9: By 2018, More than 70% of the Software Solutions Provided by Major Vendors Will Incorporate "Bring Your Own License" Features in Support of Cloud Migration
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2019, to Drive More Cloud Subscriptions, 75% of Traditional Software Companies Won't Offer Additional Discounts Off License List Prices Beyond Volume Discounts
Associated Drivers
IT Impact
Guidance
Advice for Technology Buyers
External Drivers: Detail
DX: Technology-Centric Transformation Altering Business and Society
New Funding Models: Accelerating Disruption and Innovation
Everything, Everywhere: The Rise of Computer-Based Intelligence
Connected Conflict: Convergence of Technology and Privacy
Rapid Adoption of 3rd Platform Solutions (Mobile, Social, Cloud, and Big Data)
Explosion of Applications and Software Business Models
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