Some really good insights were recently published by PwC in two reports: PwC Global 100 Software Leaders and The Future of Software Pricing Excellence: SaaS Pricing.
The Global 100 report covers the entire global industry and the trends shaping the industry. Of particular note was the rapid adoption of SaaS deployment and subscription or usage-based licensing models and the new implications these have on software license compliance for vendors. The report cites data from IDC projecting subscription revenue (including SaaS) to grow at a 17.5% compounded annual rate, reaching 24% of total software revenue by 2016.
The Future of Software Pricing report looks deeper into the issues related to SaaS and subscription pricing and provides a comprehensive framework for developing licensing strategies and implementing them while differentiating leaders from mainstream and laggards in terms of capabilities. Leaders have the ability to price at the feature level, have real-time profitability and margin analytics to support deals and have provisioning systems that track SaaS usage, identify revenue leakage, capture feature and functionality usage patterns and define segments and pricing.
If you’re like most software vendors, you’re contemplating, planning or in process of adding subscription licensing models and SaaS deployment options and dealing with the many issues associated with that transition. Both reports are worth a read.