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Cetrus Blog

Monitoring as a Service

Posted by Erik Hoogerhuis on Mar 28, 2016, 7:24:03 PM

Changes to software packaging and pricing are impacting application reseller revenues and forcing changes to their business model. Subscription licenses reduce perpetual license revenue by two-thirds up-front. New browser-based applications are typically easier to use and have a lower cost than equivalent packaged applications. Significant capital expenditures for software required management approval by several management levels. Many organizations thus packaged software and services to help justify the level of effort needed for approval, leading to larger projects and idle. Subscriptions, in contrast, aren’t capital expenditures so organizations are less inclined to make projects larger than needed. Enterprises can order software as needed, and need implementation and training support in smaller chunks.

The net result is that resellers need to change their business model and revenue mix by delivering different value-added and ongoing services to their customers in order to stay in business.

We’ve been working with a number of Autodesk resellers that are taking different approaches to extending their services offerings. These offerings include:

  • Creating new, and affordable audit/compliance packages
  • Creating outsourced upgrade offerings for small and mid-size customers
  • Creating application usage analysis and license optimization services
  • Extending existing Software Asset Management (SAM) practices to include additional vendor applications

Common attributes of these offerings include the ability to implement and monitor them remotely.  Remote services delivery offers a number of advantages to both the reseller and the end customer:

  • Lower-cost because little or no on-premise reseller resource is required
  • The end customer’s own IT resource needs are reduced – lowering the costs to implement a managed service independent of the provider’s costs
  • Data is available to both the customer and solution provider 24/7

Remotely monitored services require the data collection solution must be easy to implement, robust in capturing data, accessible outside the customer’s firewall, and multi-tenant to enable the service provider to manage multiple customers. Traditional license server log-based usage monitoring solutions were designed for individual customer implementation and management. They aren’t easy to implement, require the customer to dedicate expertise and equipment, and don’t easily allow secure external access to usage data. The net result is resellers can’t easily or cost-effectively extend their business and service offerings using traditional solutions.

Remotely monitored services require the data collection solution must be easy to implement, robust in capturing data, accessible outside the customer’s firewall, and multi-tenant to enable the service provider to manage multiple customers. Traditional license server log-based usage monitoring solutions were designed for individual customer implementation and management. They aren’t easy to implement, require the customer to dedicate expertise and equipment, and don’t easily allow secure external access to usage data. The net result is resellers can’t easily or cost-effectively extend their business and service offerings using traditional solutions.

If you’re a specialty engineering application reseller looking to extend your service offerings, take a look at Process Meter. It offers real-time data collection capabilities not available from any other monitoring solution, reports standalone and license server base applications, and provides the ability to monitor multiple customers from the same console. 

Send a note to sales@cetrus.com, and we’ll sign you up for a no-charge trial to let you see for yourself how Process Meter opens new opportunity areas.

Topics: Insider