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IDC FutureScape: Worldwide Software Pricing and Licensing 2016 Predictions

IDC FutureScape: Worldwide Software Pricing and Licensing 2016 Predictions

This IDC study presents IDC's worldwide software pricing and licensing outlook for 2016 and the planning horizon 24 months beyond through the lens of the top 10 predictions. These predictions make up the framework for the planning and execution of technology-related initiatives of the IT and line-of-business (LOB) decision makers and influencers in the year ahead."As software providers look to meet emerging customer requirements and respond to competitive market pressures, expect to see lots more choice and flexibility in software licensing in the future," said Amy Konary, research vice president, Software Licensing and Mobile Enterprise Applications. "In addition, companies from every industry are seeing opportunities in monetizing business value through applications and APIs. 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
IDC Opinion
In This Study
Situation Overview
Summary of Key Drivers
IDC FutureScape Predictions
Prediction 1: Software Subscription Revenue Will Continue Its Rapid Growth Trajectory to Reach $130 Billion in 2016, a 21% Increase over 2015
Associated Drivers
IT Impact
Guidance
Prediction 2: Software License Complexity Will Indirectly Cost Organizations an Average of 25% of Their Software License Budgets in 2016
Associated Drivers
IT Impact
Guidance
Prediction 3: By 2018, 50% of All Industries Will Be Disrupted by a Competitor from Outside the Context of Their Industry That Embraces 3rd Platform Business Models
Associated Drivers
IT Impact
Guidance
Prediction 4: At Least Three Software Providers Will Announce in 2016 the Intent to End All Perpetual Licensing
Associated Drivers
IT Impact
Guidance
Prediction 5: Close to 50% of Organizations Will Have the Processes and Tools in Place to Meter Usage of Their Major On-Premises Software by 2018
Associated Drivers
IT Impact
Guidance
Prediction 6: By 2017, 65% of All U.S. Organizations Will Generate Revenue by Packaging, Brokering, and Selling APIs
Associated Drivers
IT Impact
Guidance
Prediction 7: By the End of 2016, 40% of U.S. Organizations Will Purchase Public Cloud Services via Enterprise Software Agreements
Associated Drivers
IT Impact
Guidance
Prediction 8: Outcomes-Based Software Pricing Models Will Be an Option for 20% of Applications by 2017
Associated Drivers
IT Impact
Guidance
Prediction 9: Close to 75% of Software Vendors That Offer Both On-Premises Software and Cloud Will Offer Discounts on Bundled Offers to Drive Cloud Adoption in 2016
Associated Drivers
IT Impact
Guidance
Prediction 10: By 2018, 60% of Manufacturers of Connected Devices (Automobiles, Thermostats, Medical Devices, etc.) Will Generate Recurring Revenue via a Software-Based Offering or Service
Associated Drivers
IT Impact
Guidance
Essential Guidance
Key Drivers
DX: Accelerating Business Disruption from Digital Transformation
Shifting Gears: The Slowing Pace of IT Productivity
Risky Business: International Impact of Economic Volatility
Customer Expectation for Increasing Levels of Service
Rapid Adoption of 3rd Platform Solutions (Mobile, Social, Cloud, and Big Data)
Explosion of Applications and Business Models
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Related Research
Synopsis

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