Report: 59% of Software Vendors Plan to Increase SaaS Delivery in the Next 18 Months

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Software vendors are undergoing a sea change in the way they monetize and deploy their products.

Nearly two-thirds (59%) expect to deploy more software-as-a-service (SaaS) models; and 54% plan to increase subscription pricing models. At the same time, perpetual licenses and on-premises deployments are growing much more slowly. Yet the rise of all deployment models reflects the hybrid nature of contemporary approaches.

The adoption of SaaS and subscription models is driven by a few factors. Going forward, this includes entering a new vertical market (65%), eliminating revenue leakage (63%), facilitating customer adoption (61%), and offering usage-based models (61%).

As popular as usage-based models may become, relatively few software vendors (26%) can collect product usage data “very well” and only 32% indicate that the price of their software is “completely aligned” with the value offered to customers. This indicates areas that need to be strengthened in order to support overall monetization goals and practices.

The reality today is that software customers have varying requirements that are best met by a variety of monetization and deployment models. The management of these offers requires information on user behavior. The ability to deliver and support hybrid offerings can help software vendors succeed. One thing remains constant: the need to provide high-value products that help ensure customer loyalty.

The 2022 Revenera Monetization Monitor: Software Industry Survey was conducted by Revenera from mid-April to mid-July 2022. This research project examines software vendors’ business models, pricing, usage, and software transparency . The survey was conducted globally. The job levels of the 261 survey respondents were: director and above (31%), manager/team leader (35%) and individual contributors/consultants (34%).

Read the full report from Revenera.

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