The Path to Software Monetization

Software monetization involves flexible and customized software licensing solutions tailored to customers’ unique user environments to generate revenue. As defined by international digital security company Gemalto, “Software monetization can be viewed as the adoption of any variety of measures an organization takes in order to increase the profitability of their intellectual property, in this case, software. These tactics can range from sophisticated anti-piracy and IP protection techniques to creative pricing and packaging strategies.”

Last year’s 10th annual “Licensing Live” event, hosted by Gemalto’s Software Monetization business unit, featured insights into how businesses moving forward can adapt to our connected environment/digital landscape and begin to operate, price and sell differently as users increasingly demand ease of access to software upgrades, flexible pricing models and a superior customer experience. This involves three key drivers as outlined by Gemalto:


As the market becomes more digital, enabling and enhancing operational efficiencies, the move from a physical solution to digital product licensing allows businesses to accelerate fulfillment processes from days or hours to several minutes, create greater back-office scalability and generate revenue faster. Customers have a better experience with a seamless software delivery process, and software vendors have a greater opportunity to remain connected with their customers through product updates and new releases. With digital solutions that enable more self-service options, vendors can track receipt of licenses and how they are being used by customers, ultimately applying this data to help improve upon and provide additional services.

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B2B consumers are demanding more value from their software vendors. So, increasingly vendors must offer value-added services to enhance the performance of their core product in the customers’ value system. In doing so, vendors discover that these types of services render new revenue potential.

Servitization is moving from the product itself to the services around it to add value and build a long-lasting customer relationship. This could mean flexible business models, tracking product usage and gaining business insights to create ongoing service opportunities that meet consumer demand. The ultimate consequence of servitization is that products and services become more integrated, sophisticated solutions.


Consumerization means focusing on customers and giving them the experience they expect. Users want to begin using software immediately without having to call tech support dozens of times to activate a product or figure something out. Consumerization is what’s driving change and pushing vendors to empower customers to be less dependent on the vendor with services and tools that deliver a world-class experience. This could mean providing user portals and tools for software activation and upgrades using any device on a 24/7 basis.

Sources: Gemalto: “Digitalization, Servitization, Consumerization: The Keys to Software Monetization”; Atos Consulting