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Why licence management is the key to sustainable software monetisation and digital business processes.

Effective licence management is the foundation for sustainable software monetisation.

Interview with Dr. Ilias Michalarias

A recent interview with Dr. Ilias Michalarias, Founder and CEO of SLASCONE, explored the company’s innovative approaches to hybrid models, entitlements, and its integration with Nitrobox.

SLASCONE specialises in licence management. Can you start by briefly explaining why licence management is a key component of modern software monetisation?

In today’s business world, failing to implement effective licence management in software monetisation strategies is an issue that cannot be overlooked. It is inconceivable. Managing software licenses effectively is vital for ensuring profitable and sustainable operations.
It is an essential tool for businesses, protecting against misuse and software piracy by ensuring that only authorised users can access the software. This measure is intended to reduce illegal usage and ensure revenue security.

It also enables companies to maintain full visibility of sold, active and expired licences, which is essential for compliance and risk management.
For customers, licence management brings simplicity: intuitive self-service portals streamline licence administration and significantly enhance the user experience.
Furthermore, modern licence management systems generate valuable usage data, enabling data-driven product development and the identification of optimisation potential. This creates new revenue opportunities.

Finally, a flexible licence management system can support various business models, such as subscriptions, pay-per-use, and hybrid approaches. This allows software to be tailored to different customer segments.

What are the main challenges that companies face in this area, and in what ways does SLASCONE assist them in overcoming these obstacles? 

Licence management is a cross-functional issue. The impact of this issue is wide-ranging, affecting sales, business development and product teams. It often necessitates a fundamental rethink of existing processes. 
Uncertainty is an inevitable part of any project: what systems are required? In what ways can cloud-based customer relationship management (CRM), licensing and billing systems collaborate to facilitate seamless monetisation? 
The key issue is that effective licence management requires a coordinated, collaborative approach. 
SLASCONE is a trusted provider of technology and expertise. Our company offers comprehensive support to businesses seeking to automate their monetisation chain in its entirety. This encompasses a wide range of processes, including lead generation, evaluation, and recurring revenue. 

In what ways can flexibility in licensing and monetisation, particularly with regard to subscription and pay-per-use models, be of importance? 

In the dynamic software landscape, flexibility is of the essence. Our customers require solutions that are tailored to their specific needs. The subscription and pay-per-use models offer clear benefits: 

  • Transparency: Our customers are always aware of the costs involved. 
  • Scalability: Businesses can adapt their operations to align with fluctuating demand. 
  • Customer centricity: Agile licence models provide real value and foster innovation. 

 Without flexible licence management, the execution of these models would be almost impossible. 

In the absence of flexibility, monetisation has a detrimental effect on growth.

Please could you clarify what is meant by the term “entitlement” in the context of licence management, and why it is so important for modern business models? 

Entitlement refers to the specific rights and permissions a customer acquires through a purchase, licence, or subscription. For instance: A company procures a software suite. The entitlement encompasses 10 user licences, access to premium features, and complimentary updates for a period of 12 months. 
In the context of licensing models, ‘entitlements’ typically refer to the static, non-usage-based components. 

What is the most effective way to incorporate entitlements into hybrid monetisation models that combine subscriptions and usage-based elements? 

Modern licence management systems such as SLASCONE offer a comprehensive solution for managing entitlements. They also collect usage data that can be leveraged for optimisation or billing purposes. 

A real-world scenario: 
SLASCONE is responsible for the collection of transaction data from a software vendor. The product team then analyses this data and identifies features suitable for usage-based billing. 
These insights are then passed via API to monetisation platforms such as Nitrobox, which handles the billing. 

For instance: 

Contract A includes 100 transactions in the initial fee. Additional transactions are available at no extra charge. 

Contract B: Each transaction is billed from the first one, with a cost of, for example, a few cents per transaction. 

The result is maximum flexibility for hybrid models. 

What are the key benefits of efficient licence management, and how can it contribute to cost reductions and enhanced customer satisfaction? 

Two key words to describe this are “automation” and “flexibility”. 
Manual licence management, whether using dongles or annual licence keys, is a process that is both labour-intensive and prone to errors. It is also inefficient. A modern licence management system automates these processes, saving time, costs and effort for both providers and customers. 

 Another key benefit is that development teams can focus on enhancing the product rather than on administrative tasks. 

What are the most exciting new business models that can be enabled by modern licensing and billing solutions? 

In the software industry, most models are already familiar. In this case, simplicity is preferable to complexity. A well-structured system landscape allows companies to implement any model – from classic subscriptions to flexible, usage-based billing. The key to success? All aspects of the system are data-driven and can be adapted at any time. 

In what ways do licence management tools such as SLASCONE and monetisation solutions like Nitrobox complement each other, and what advantages does their integration offer for companies with complex business models? 

SLASCONE and Nitrobox form a powerful combination for businesses with advanced monetisation requirements. Slascone is responsible for the management of entitlements and usage analytics, while Nitrobox is responsible for invoicing. 

For instance: SLASCONE is utilised by the company for the purpose of tracking in-product transaction data. Nitrobox uses this data to generate transparent, scalable invoices, supporting hybrid models. 

Slascone and Nitrobox are a perfect fit for each other, much like the puzzle and frame of a picture.

Their integration enables operational efficiency and unlocks new monetisation opportunities. 

The interview with Dr. Ilias Michalarias reveals: To successfully monetise modern software, you need more than just a strong idea — you also need flexible, data-driven licence management that integrates seamlessly with scalable billing processes. SLASCONE and Nitrobox demonstrate how this can be achieved efficiently and seamlessly.

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