More than ever, embedded software is playing a central role in high-tech manufacturers’ go-to-market strategies. This trend is especially apparent in markets such as telecom, test and measurement, healthcare, and industrial automation – where manufacturers are under increasing pressure to innovate, rapidly enter new markets, control costs, maximize incremental revenue from existing customers, and deliver a competitively differentiated customer experience.
As embedded software has become more integral to their business, more and more manufacturers are discovering the power of software licensing. With licensing, manufacturers can turn device features and/or capacity on and off as appropriate. This allows them to charge customers for the capabilities they want, while not charging them for capabilities they don’t want. Specifically, licensing enables telecom equipment providers to more effectively use embedded software as a means of managing and monetizing the features and functionality they provide in their devices.
By adopting the right licensing models, telecom equipment providers can:
• Produce different products on the same hardware chassis. This drives down costs by eliminating the need for additional production lines and minimizing the number of SKUs that have to be kept in inventory.
• Create innovative products on existing hardware chassis. This reduces the cost and time it takes to bring differentiated products to new or existing markets.
• Up-sell existing customers by simply activating additional device capabilities or capacity. This makes it easier to capitalize on incremental revenue opportunities.
• Meet evolving customer needs without requiring them
to swap out hardware or otherwise disrupt their operations. This makes for a more positive ongoing customer experience.
