Nobody would eat a whole salami from end to end. We might all want to, but we wouldn’t try (or manage). Instead, we proceed slice by slice. This strategy, also called the salami tactic, can be applied to many other walks of life, and software licensing is one of them. Over their evolution, many software products tend to get bigger and bigger as the developers try to fulfil new user expectations or add new technology capabilities. Some call this bloat, but it is actually a reasonable way of responding to a growing user base with a growing set of needs and expectations. However, few users will need all of the features at once. Usually, they only need a few selected features, creating a dilemma for software developers and their clients: Users don’t want to pay for things they never use, but developers don’t want to give their work away for free.
This is where the salami tactic comes back into the picture. Called features-on-demand in the software world, it means that the users are not forced to buy or pay for the entire package (or salami), but only for the features (or slices) they want. Although the term had negative connotations for its originator, Zoltán Pfeiffer, the salami tactic is a great example of a win-win strategy. The seller gets their software to the user at a lower entry price, and the users have the opportunity to spend more for the features they want on top.
Our masterclass will look at the entire triad involved in this: First, software development, second, license creation, and third, the business model.
Aspect 1: What does the developer have to do in order to license and sell the software by individual features? Do the features and functions have to be placed in separate components (.dll), or can they stay in a single executable? How does the decision affect the integration of software protections and licensing? Should there be a free bare-bones version of the software?
Aspect 2: How should the licenses be modelled for each feature, and how will they get to the user? In gaming, in-app purchases are all the rage, which allow users to simply buy add-on features at the click of a button. How can this be integrated?
Aspect 3: What are the opportunities and risks of feature-on-demand business models? In particular, how would the transition affect an existing product portfolio? Can feature-on-demand models be combined with subscription offerings, or is this dangerously close to opening Pandora’s box?
AxProtector Modular Licensing vs. CodeMeter Core API
Integrating online activation
Join our webinar to discover how feature-on-demand options can give your revenue a real boost. Find out which technical and organizational steps you should or have to consider before introducing the new model. In the sixty minutes we will spend together, we will plate up the whole feature-on-demand salami – but in nice, bite-size slices for you.