As part of this month’s SAMPanel debate, we are very happy to welcome a new contributor in Vincent Smyth, Senior Vice President EMEA at Flexera Software, who we asked, “Looking ahead, what are your predictions for the SAM market?”

Below was his response;

– Licensing will become a potent security weapon helping software vendors /application producers reduce hacker risk. Also, pushing software updates will be key to defending against IoT hackers.

According to a recent BSA Global Software Survey, 43 percent of the software installed on PCs around the world, totalling more than $62 billion in value, was not properly licensed last year.  In 2015 producers will start implementing advances in tamper-resistant software licensing to reduce hacker risk and protect their intellectual property.  Techniques such as tamper resistance, code-obfuscation and hacker detection are a few of the licensing strategies that will be deployed to reduce software piracy.

In the context of the Internet of Things, one of the primary concerns associated with internet-connected devices is the risk from hackers exploiting vulnerabilities and using applications on device as a vector for viruses/malware.  Because defending against hackers is a continuous ‘cat-and-mouse’ game, once patches to hacked software are created, device makers will need the ability to automatically push those patch updates to the product to ensure installation – and ensure the manufacturer and customer are protected.  By end of 2015, more than 10% of device makers will have added automated firmware/software updates to their capabilities in order to defend against Internet of Things hackers.

 – More software renters than owners in 2015

In 2015, enterprises increasingly will see renting software (software subscriptions) as being advantageous over owning software (purchasing perpetual licenses).  The reasons for this shift vary organisation to organisation – ranging from the ability to shift software expenses from CAPEX to OPEX, better aligning cost to value, and reducing up-front licensing costs.  But the trend is real and in 2015 the number of subscription deals will exceed perpetual license deals for most enterprise software vendors.

 – Vendor software audits will continue unabated – adding to corporate risk

Software vendors’ ability to hit their bottom-line revenue targets will continue to rely upon true-up fees extracted from customers via invasive software license audits.  Consequently, the common vendor practice of conducting these audits will continue unabated in 2015, impacting the cost and risk profile of companies of all sizes.  According to a recent survey, in 2014 21% of these audits yielded fees to vendors of $1 million or more, and Microsoft was the most aggressive auditor.  The number of audits, and fees generated from them will continue to rise.

 – App stores will become key enablers for IT services delivery and license compliance

As organisations accelerate their adoption of enterprise app stores, the utility of these self-service stores will expand beyond that of simply providing employee access to company apps.  IT will discover that app stores are an ideal environment to consolidate disparate and separately managed systems, such as mobile and desktop application management.  App stores will also be used to enable proactive license management by tying application requests into existing Software License Optimisation processes, and enabling employees to partner with IT in managing application usage, reclaiming unused applications, and minimising waste.

– Enterprises will get “predictive” and start analysing future impact of potential environment/licensing changes on software budgets – before those changes are made

Software license management has historically been a reactive, retrospective corporate practice.  Organisations fearing software license audits (and the resulting true-up penalties) started implementing processes and technologies to understand their license position.  They looked at current and past licensing positions to determine a current state.

In 2015 organisations with sophisticated Software License Optimisation infrastructures in place, will get more proactive about license management.  They will start analysing the potential impact of changes to their licensing positions or IT environments – such as a virtualisation – and proactively examine  the impact of those changes on software licensing costs.  By getting predictive, organisations will be able to strategically manage complicated software assets, and significantly reduce costs and corporate risk in the process.

– Mobile app in the enterprise will become less risky

As mobile apps and bring-your-own-device (BYOD) become imbedded in enterprise cultures, in 2015 IT will rein in the “wild west” risky behaviors that mobile apps introduce into the corporate environment.  IT will focus on the two big thorny questions:  First, how will the mobile app break the environment (i.e. Identify mobile apps that display behaviours that may introduce risk to corporate security and data privacy – such as social media or GPS apps), allowing management to enact appropriate policies around those apps. Second, how can my environment break the mobile app (i.e. Determine whether an upgrade to critical mobile software – like stock trading apps – is compatible with the enterprise environment, enabling IT to warn employees ahead of time when an upgrade will break the app.).  By addressing these risks, mobile apps within the enterprise will become far less risky in 2015.

About the Author

Vincent Smyth | Senior Vice President EMEA at Flexera Software | Connect with Vincent

Vincent is responsible for driving revenue, market share and customer satisfaction in the independent software vendor, high-tech manufacturer and enterprise account domains. Prior to Flexera Software, he has held several sales management responsibilities for Business Objects, PTC and Computer Associates. He has extensive experience of doing business across Europe and the Middle East.

About Flexera Software

Flexera Software helps application producers and enterprises increase application usage and the value they derive from their software.  Our next-generation software licensing, compliance and installation solutions are essential to ensure continuous licensing compliance, optimised software investments and to future-proof businesses against the risks and costs of constantly changing technology.  Over 80,000 customers turn to Flexera Software as a trusted and neutral source for the