Frost & Sullivan Applauds Flexera Software for Extending its Market Share Lead in the Software-Enforced Software Monetization Market

The strong synergies of its interrelated product lines give Flexera Software added brand value and competitive heft

Jan 28, 2014, 09:00 ET from Frost & Sullivan

MOUNTAIN VIEW, Calif., Jan. 28, 2014 /PRNewswire/ -- Based on its recent analysis of the software monetization market, Frost & Sullivan recognizes Flexera Software with the 2013 Global Frost & Sullivan Market Share Leadership Award for capturing the highest market share by revenue in the software-enforced segment of this industry and for continued strong growth despite flat revenues in the software markets it serves.

Flexera Software increased its share in the software-enforced market segment from nearly 45 percent revenue share in 2011 to more than 48 percent in 2013. Flexera Software has a particularly strong presence in the North American market, but continues to grow within Europe and Asia as well. Similarly, while it is the strongest in the B2B segment, it is carving out a bigger share of the pie in the embedded and cloud segments.

"The FlexNet Producer Suite is a proven technology in the traditional desktop software markets; it is also increasingly relevant in embedded use cases where Flexera Software manages intellectual property and feature editions in software-powered appliances and devices," said Frost & Sullivan Industry Analyst Avni Rambhia. "The suite enables a comprehensive set of supported business models, entitlement features, use cases and back-end integration capability with customer relationship management and enterprise resource planning systems."

In addition to its FlexNet Producer Suite, the company offers Software License Optimization solutions to enterprises to streamline and optimize the use of their software licenses from such vendors as Microsoft, IBM, Symantec, SAP, and Oracle. It also offers Application Readiness solutions such as AdminStudio Suite and App Portal, to help enterprises confidently discover assess compatibility, model, manage and package applications for reliable deployment on premise, to virtualized and cloud-based environments and mobile devices. Flexera Software's InstallShield is a widely used software installation product.

FlexNet Licensing is popular across many segments of the desktop software industry. For example, FlexNet Licensing continues to be the monetization system of choice for protecting popular plug-in-based platforms, where the base application and most plug-ins leverage FlexNet Licensing and FlexNet Operations for their entitlement management needs. This not only contributes to existing market share, but provides added entry barriers to competing solutions, as enterprise customers prefer their entire application suite to use a single software monetization solution.

"Offering license management solutions for the enterprise users of software serves to complete the software license supply chain, and provides insights that are used to reinforce and enhance the licensing solutions for software vendors," noted Rambhia. "On the product portfolio side, Flexera Software has chosen to maintain its software technology approach, relying on hardware specialists to provide dongles while maintaining its core competency in higher-margin software solutions."

Flexera Software employs a value-based pricing model, wherein it charges a small percentage of the total software revenues as a licensing fee rather than a fixed per-unit fee. This is particularly effective in cases where vendors sell only a few thousand licenses per year of software that require highly expensive licenses. It also enables relatively small software vendors to deploy Flexera Software's monetization solutions at relatively risk-free price points. By incentivizing vendors to purchase multi-year subscriptions of their monetization technology, Flexera offers further value, while itself gaining stable revenue streams.

Flexera Software has achieved its enviable market position on the strength of its established product and brand, effective industry outreach, and significant and successful execution of strategic growth initiatives through both acquisitions and organic growth. As the use of software monetization technologies in the embedded sector becomes more widespread and cloud-based opportunities mature, Flexera Software is expected to enjoy a long run at the helm of the software-enforced software monetization market.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Flexera Software

Flexera Software helps application producers and enterprises increase application usage and the value they derive from their software.  Our Application Usage Management solutions are essential to ensure continuous licensing compliance, optimized 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 knowledge and expertise we have gained as the marketplace leader in licensing, installation and compliance for over 20 years and for the automation and intelligence designed into our products.  For more information, please go to:


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SOURCE Frost & Sullivan