Johannesburg, 07 Dec 2004
As software development companies, we`re increasingly faced with a myriad of issues when it comes to software licensing. Indeed, it`s always a challenge to choose the right licensing model for your products that will benefit both your users and your business in the long run.
Currently, there are a number of models like `per user`, `per CPU` and `per item` as well as the large volume discounting incentive structure.
When structuring a licensing model it`s key that you consider the smaller companies of our developing economy. It`s very important that as a software company you allow these organisations to access your products without crippling their budgets.
Creative licensing is therefore imperative, and one that springs to mind is Microsoft`s three-year rental programme that enables those with restricted budgets to still benefit from the latest advancements in software development.
Plus, with the increasing number of software now featuring Web-based licensing, models continue to evolve. Looking at the downside, most licensing models are invoiced in dollars which makes it difficult to budget for.
If a company has opted for "maintenance" they will have to pay annually, or whatever the case may be, and with a fluctuating currency it`s almost impossible to predict what the next payment will be.
Looking at another contentious aspect of licensing, software piracy seems to be diminishing as most developers today have software key generators that only allow for the use of a product, once payment of authorisation is received. This in turn helps software companies to clearly assess who their users are while driving down piracy.
We`ve come a long way in terms of software licensing; however, it still remains important that companies clearly consider who their target market is - inflexible, unattainable software will at the end negatively impact your business.
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