Digital services licensing and subscriptions management for electric equipment manufacturers

Do device manufacturers need custom service licensing solutions — or will third-party solutions suffice. We’re experts at helping you make that decision.

One of the most visible signs of the evolution of digital services is the way software licensing has changed. Many of us remember the times when software was shipped on floppy disks or CD-ROMs, with a paper label containing a license key. In more complex scenarios, software licenses were protected with hardware license dongles to be plugged in the machines where the applications were running. With Cloud services and Web platform solutions taking the lead in digital services technology, software licensing has moved more and more to online account-based license verification.

As companies expand their value offering with the introduction of web-based customer-oriented digital services, doors are open to new business models, like subscription-based licensing, that gives benefits to both the seller and the customer. 

How Proekspert helps with customer-oriented digital services

At Proekspert, customer-oriented digital services are part of our core business, and good design and implementation practices for licensing and subscription mechanisms have always been part of our skillset. 

For smart device manufacturers, digital services are typically add-on offers to their core business, which is selling devices. This means that, in many cases, most of our customer’s needs are satisfied by a simple licensing portal, where administrators can enable, disable, and manage licenses and subscriptions for their digital services.

In many situations the client has the right to a specific license or subscription depending on the type of contract they have for the devices they are buying from you. Or the financial transaction is handled by a B2B invoicing process already in place for the core business, and a dedicated invoice is issued for digital services. 

Licensing and subscription conditions vary market to market

If you’d like to eliminate the complexity of implementing and managing multiple payment methods across a variety of markets, currencies, and tax jurisdictions, then Proekspert can tell you whether custom solutions are required, or if existing, third-party services can do the job.

Proekspert can help shape your licensing and subscriptions business model with a setup that allows you to: 

  • Define your portfolio of digital services and features. 
  • Define licenses and subscription package offers. Identify what services and features of your portfolio are available under a specific license. 
  • Generate and handle licenses and subscription keys. Example: you offer desktop software applications to your clients that require a license key. 
  • Create a customer portal, where customers can verify their license- and subscription status. 
  • Integrate APIs that allows developers of your digital services to enable/disable features depending on user licenses. 

Solutions may be extended with ad-hoc customization and integration with other backend systems, for example, to turn customer portals into self-service portals, enabling customers to purchase licenses and subscriptions.

What is subscription management?

For electric equipment manufacturers, subscription management involves overseeing and administering subscriptions for our products or services. This includes handling customer sign-ups, renewals, billing, and cancellations. 

Electric equipment manufacturers ensure a seamless experience for customers who opt for subscription-based access to their products or services, like maintenance packages or software updates. Electric equipment manufacturers can maintain consistent revenue streams, track customer engagement, and tailor offerings based on usage patterns. Effective subscription management is key to customer satisfaction and long-term business sustainability.

What is digital services licensing?

Digital services licensing involves granting permissions to use digital content or services, typically through a legal agreement. This includes software, online platforms, digital media, and other internet-based services. 

The licence defines the scope of use, distribution rights, limitations, and the rights of the licensor and licensee. It’s essential to managing intellectual property rights in the digital realm. This ensures compliance and protects both the provider’s and the user’s interests.

Why subscription-based licensing is the future?

Subscription-based licensing is a model where customers pay a recurring fee, typically monthly or annually, to access a product or service. So, unlike traditional perpetual licenses, where a one-time payment grants lifelong access, subscription licenses offer access for a limited period. 

As discussed above, Subscription-based licensing is common in software, digital services, and sometimes physical products because It provides flexibility, with options for upgrading, downscaling, or discontinuing services based on user needs. 

Subscription-based licensing ensures a steady revenue stream and closer customer relationships for electric equipment manufacturers, fostering ongoing product improvements and customer feedback integration – and we at Proekspert can help you do that.

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