Driving Innovation in AV with Licensing Management

License and entitlement management play different but complementary roles when it comes to software usage, but it can also be applied to hardware in the AV industry. While license management ensures that users have an actual right to use the software or hardware, entitlement management optimizes how it is utilized. Together, they allow businesses to control both ownership and the specific capabilities offered to each user. In this post, we’ll take a deep dive into how AV manufacturers can optimize their license and entitlement management. 

What is License Management?

License management is how organizations handle the legal and logistical aspects of software or hardware usage. A software or hardware license is a legal agreement that grants users the right to access and use a specific product under defined conditions – like the number of users or devices, or a geographic location. The license ensures compliance with the terms set by the vendor with the aim of preventing unauthorized use or distribution. 

What is Entitlement Management?

Entitlement management is how companies control what features or capabilities a user can access within a software or hardware product, based on their subscription plan or purchase level. Entitlements determine which functionalities are available to which users - allowing businesses to customize access to features according to their pricing model. 

License and Entitlement Pricing Models Defined

Pricing models for licensing vary based on how customers are allowed to access and use the product. 

A perpetual license - a one-time payment that grants users lifetime access to the hardware or software - is common for on-prem software, and often requires additional fees for updates or support. A timed license is similar but has a set end date, after which users must renew to maintain access. 

The subscription model, which charges users monthly or yearly, is emerging as the most popular pricing model in the AV and other industries. In this model, users pay for ongoing access and often receive automatic updates and support as part of the subscription. Another increasingly popular model is usage-based pricing, where customers are charged based on their actual usage of the product, such as the number of API calls, the amount of data processed, or other measurements based on telemetry data. This model provides flexibility for both the user and provider -  allowing customers to pay only for what they use while empowering providers to scale revenue based on demand.

License and Entitlement Management in the AV Industry

In the AV industry, both license and entitlement management have evolved to address an increasingly complex ecosystem of devices and services. In fact, offering software-based licenses can be a first step and entry strategy for manufacturers considering full AV-as-a-Service models. 

One of the key drivers for AV innovation is customer demand to enable specific features or expand capacity. This is particularly important in a competitive market like AV since it helps manufacturers maximize flexibility while controlling costs. By way of example, AV powerhouse Symetrix offers its customers the ability to remotely unlock their software and grow AVoIP channels from 256x256 to 384x384.

In another example, WyreStorm is offering licenses to a specific platform feature, secure tunneling (also called SSH tunneling), which allows manufacturers and their channel partners to manage connected devices in a secure fashion via end-users’ on-premise device web interfaces. 

Similarly, more and more manufacturers are enabling clients to lease devices - paying for only the functionalities they need. As with feature activation, device leasing (usually facilitated by advanced cloud-based platforms) allows dealers and customers to activate, manage, monetize and deactivate functionality as required. 

An increasing number of manufacturers are developing and allowing on-demand feature upgrades to expand the lifespan and flexibility of their hardware. And warranties and support management are also evolving; for example, warranties on hardware may also cover software functionalities as well as the physical product. 

Streamlined License and Entitlement Management Transforms AV 

How does delivery and management of license entitlements and subscriptions work in the AV industry? The answer is a range of options - from traditional to more streamlined digital solutions. 

Some legacy manufacturers still offer license codes via snail mail, which customers manually enter into a device or software to activate the license. Others rely on email delivery, where users receive a license code to copy and paste during activation.

Forward-thinking AV manufacturers, distributors and integrators are shifting to cloud-based portals like Xyte, where they can manage all licenses and entitlements in one place. These portals allow for seamless activation with just a few clicks, eliminating the need for manual code entry. 

By automating the process of purchasing, assigning and activating software updates, premium features and licenses all in one interface, these AV innovators are not only delighting their customers with better support and self-service capabilities – they’re streamlining their own businesses while making it easier for customer to renew. What’s more, tight integration with asset management and remote monitoring and management offers real-time insights into entitlement usage and aggregated device data. This helps them tailor new features to real-world device usage, while also fostering scalability across the AV value chain.

Cloud Automation Simplifies AV License Management

It’s clear that cloud platforms (like Xyte’s Device Cloud) are revolutionizing license and entitlement management in the AV industry. 

On the front end, integral estores or customer portals allow users to easily buy, renew, upgrade, or cancel licenses with just a click. This simplifies the core customer experience, making it easier to manage licenses on a self-service basis without opening a support ticket. Built-in email automation even reminds customers of upcoming license renewals or expirations, reducing the risk of service disruptions.

On the back end, cloud platforms like Xyte allow manufacturers and systems integrators to keep a closer eye on device entitlements. Xyte Device Cloud can track, entitle, and revoke specific licenses for each device, providing real-time visibility into who exactly is using which licenses. What’s more, Xyte can handle all common pricing models, making it uniquely adaptable to evolving business approaches.

When choosing a cloud platform, check to see if there is a built-in payment gateway to enable seamless transactions. Additionally, an effective cloud platform needs to support floating licenses so that a specific feature or license can be moved from one device to another within an organization. And firmware integration will ensure that licenses are automatically managed by the device itself, minimizing manual interventions. 

The Bottom Line

Leaders in the AV market understand that premium, on-demand features through licensing are crucial to meet customer demands, and therefore a requirement for growth. Cloud platforms like Xyte are at the forefront of this transformation, simplifying license management both on the frontend and backend. As AV technology continues to evolve, adopting advanced license and entitlement management solutions will be key to staying competitive, driving innovation, and delivering value to customers across the AV value chain.

‍