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Future Trends

Another major trend we are going to see in the medical device space is the consolidation of the industry through mergers and acquisitions. In the current economic climate, growth by acquisition is becoming a big driver. With the inflow of investment from the market, there is a constant stream of acquisitions and the occasional merger. The speed of integration of the product stack across the companies is one of the keys to success. Having a software monetization and licensing solution that is flexible and at the same time scalable contributes significantly in recognizing revenues for the newly combined entity. Oftentimes, because of disparate licensing and other IT systems, it takes a long time to drive synergies between the engaged companies. Thus, leveraging a cloud-based software monetization solution will not only scale, but it will also be easy to configure and deploy.

After examining how next-generation software monetization solutions (embedded and cloud) can protect IP and enable business model transformation, here is what the solution might look like and how it fits into the technology landscape of a device manufacturer. Leveraging a cloud technology footprint preempts the need to deploy license servers in the end-user landscape. Licensing delivered as a service enables near real-time updates and notifications to the end user. Some of the other technological components that need to integrate with the licensing/usage-tracking software monetization solution include ERP, CRM and billing.

Shifting from hardware-based monetization business models to software-based monetization and protection typically occurs in phases. Cloud technologies can definitely accelerate the pace of this change. However, medical device manufacturers that embrace this transition, and align with the trends in this industry as outlined above will be able to overcome the challenges they face and can vigorously pursue greater market share and reduce manufacturing and inventory costs with confidence that they are protected against competitive threats to their intellectual property. They will also be able to more cost-effectively expand their product line into newer markets and bring innovative new devices to existing markets. In short, those vendors making the transition to a software business model will be more nimble and better positioned for the future.

It is interesting to note that software licensing has evolved significantly in the last couple of years and has reinvented itself from a “nice to have” to a “need to have.” In fact, many medical devices companies now have dedicated teams working on their software monetization strategy. These are indeed exciting times with so much innovation in the medical industry as well as in the software monetization industry. In the medical devices space embedded licensing, cloud licensing and software licensing are going to come together in one solution to protect the next generation of medical devices and transform the business models with which they are launched in the market.

Omkar Munipalle is currently the Director of Strategy and Business Development for SafeNet’s Cloud products. He is responsible for global strategic partnerships, driving new business initiatives and increased adoption of monetization solutions in the cloud. He has over 10 years’ experience in the technology field with a focus on Cloud, big data, analytics and software monetization. He has an undergraduate degree in engineering and an MBA from Duke University.

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