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Unmonetized software

Pricing and business models for industrial software.

Great industrial software, no business around it. Turn your software into a business model that scales.

What you see

  • A portfolio that grew release by release, with no clear product structure.
  • Packaging and price lists that the sales team works around.
  • Perpetual licences in a market that buys subscriptions.
  • Strong technology, weak recurring revenue.

What is really happening

Unmonetized software is a product structure problem before it is a sales problem. Packaging is unclear, licensing and pricing fight the sales motion, and licence thinking persists in a subscription world. The software is good. The business model around it was never designed.

How we work on it

Three steps along the X.

THINK

Structure the portfolio.

Portfolio strategy for software vendors: product structure, roadmap logic and the decision to build, partner or buy.

ADOPT

Package and price.

Licensing and pricing from licence to recurring revenue: packaging, price metric and price logic that make the price list an asset instead of an obstacle.

ADOPT

Take it to market.

Product structure, packaging and licensing implemented in contracts, systems and the sales motion, so the new model actually sells.

What you get

A product structure, packaging and price logic, a migration path from perpetual licences to recurring revenue, and a sales motion that sells the new model.

Typical KPIs: recurring revenue share, average deal size, pipeline conversion, sales cycle length, among others.

Form of engagement: Usually starts with an Executive Assessment (THINK), followed by Build and Mobilize (MAKE and ADOPT) and an Advisory Retainer.

All forms of engagement

From practice

Process software, DACH

Portfolio and packaging rebuilt, pricing moved from perpetual to recurring.

Sales motion aligned to the buyer, not to the release calendar.

Read more

What a hardware sales force costs you in a software world.

Packaging, pricing and the sales motion decide whether good industrial software becomes a business.

Questions

Questions we are asked

How do you move industrial software from perpetual licences to subscriptions?

By redesigning product structure, packaging and price metric together, and by planning the migration for existing customers and for the incentives of the sales team. Changing the price list alone moves the problem into sales.

What is a good price metric for industrial software?

One that grows with the value the customer receives and that the customer can verify, for example per asset, per line or per site rather than per installation. Which one fits depends on the product and the buyer.

Who is this for?

Industrial software vendors and product companies for hardware and software, typically at the level of CEO, CRO or CPO.

All six starting points

Find the one that describes your situation.

Andreas Geiss on stageLikeness: A. Geiss; AI image

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