The financial growth and success of hardware companies depends upon avoiding the hardware they produce being consumed as a mere commodity.
Avoiding commoditization of physical hardware is achieved by:
- delivering additional value
- connection to cloud services / other hardware infrastructure
- upsells of the 'capabilities' of the very hardware being used
…all can unlock brand new revenue streams for the hardware manufacturer or vendor.
The key to unlocking and facilitating these revenue streams, comes from hardware companies adopting an end-to-end approach to licensing, entitlement control and fulfillment.
Product offering SKUs become a combination of physical hardware, on-device control software, and connected licensing that is controlling who is entitled to use what. The entitlement control can permit or restrict the use of hardware whilst its usage is captured.
With intelligent hardware increasingly interacting with cloud-based services and resources, these interactions can be monetized through subscriptions and consumption based licensing, revenues essential to hardware company growth.
These approaches lower the need for the manufacture of so many physically differentiated hardware SKUs while opening up monetization opportunities.
Entitlements are increasingly at the center of everything hardware companies do!
The view and control of the full customer base needs to be controlled using an entitlements delivery platform that can deliver, whatever the device, whatever the environment. Whether the hardware is connected to the internet or not, this entitlement control needs connecting to ERP, CRM, existing backend systems, Ecommerce, Billing, Subscription and finance platforms.
The need for hardware companies to achieve software-driven revenue and monetization is clear. The reality is that entitlement delivery executed in a fully connected fashion is essential.
If you are a hardware company looking to move rapidly on securing growth, reach out to us here at Nalpeiron. Entitlements control and delivery is what we do. We ensure hardware companies prosper - reach out for a quick chat.