Selling software is challenging, but managing the software licenses sold to your customers is even more difficult. Software vendors need to protect their intellectual property (IP) and ensure compliance.
G2 is excited to announce a category for Software Licensing Management Tools that can help vendors manage, distribute, and protect their licensed software. This will help reduce their revenue loss and ensure customer compliance.
What is software licensing management?
Software licensing management tools enable vendors to control and monetize their software products. These tools can automate managing multiple licenses for different customers and reduce the risk of unauthorized usage and piracy by ensuring that only authorized users can access the software.
Common features of such tools include licensing activation and deactivation, usage tracking, and anti-piracy protection.
By improving licensing allocation, companies can improve their revenue stream. If an organization or person already uses your software without paying, you can turn the situation around by limiting their access and applying anti-piracy measures. This is also an opportunity to sell them the proper software licenses.
As we all may know, acquiring a new customer can cost five times more than retaining existing customers. And through this, there may be an opportunity to turn existing unlicensed users into paying customers.
Software licensing management improves control and compliance
When a software vendor is starting up, many of them manually track their licenses using spreadsheets. However, as their customer base grows, this traditional approach becomes prone to errors and inefficiencies.
Software licensing management tools automate renewal, activation, and deactivation in real time. These solutions reduce administrative overhead on tracking and updating software licenses.
With these tools, vendors can offer a wide range of licensing models, from subscriptions to perpetual licenses. This flexibility allows vendors to use the best licensing models based on various market demands and contract types.
Enhanced security and license protection to fight piracy
Modern software licensing tools include security measures to prevent such instances. Encryption, license validation, and user verification features prevent unauthorized access to the software product. Vendors can reduce revenue leaks and safeguard their IP.
Benefits and challenges of software licensing management tools according to G2 review data
Like any other tool, software licensing management tools have its pros and cons. And as usual, G2 reviewers have weighed in on both.
Overall, this type of software is essential for solving issues with efficiency, stability, and ease of use. However, challenges such as insufficient documentation, steep learning curves, and UI issues can hinder user experience.
Potential buyers should take note of these issues when demoing this type of product. Vendors should address these common concerns to ensure product usability.
The future of software licensing management
As more vendors move to cloud-based SaaS software, they focus on subscription-based licensing management to handle automated renewals and upgrades. Advanced functionalities will allow users to switch between monthly and annual plans, track usage consumption, issue invoices, and enforce restrictions.
However, these functionalities may come with an increased cost for the software. So, make sure to read verified peer reviews to make an informed decision on software licensing.
Learn about the future of the subscription model and take advantage of new opportunities arising from these changes.
Edited by Jigmee Bhutia
Simplify license management today
