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Software development companies will switch to subscription

Companies have changed remarkably compared to what they were a while ago, now they are focused and prepared to take on new challenges.

A large part of micro-enterprises and SMEs need to optimize their processes through efficient technological solutions that complement the company's integral process, for which they turn to software development companies.

Aa software development company It is the one that is responsible for the construction of specialized software according to the requirements of its clients.

MImproving the attractiveness of its services, meeting customer needs and being at the forefront of technological trends are some of the challenges that a software development company faces in today's ambitious competitive scenario.

In this sense, a software development company provides solutions to a company's problems, streamlines processes, improves efficiency and performance to achieve business goals.

What is the forecast of software development companies for 2023?

One of the events that is planned for 2023 is a change of strategy in software development companies.

This was revealed by a study recently carried out by a company dedicated to advising companies in the technological field, surveys were applied to 374 people from different companies, including: directors and superiors (33%), managers and team leaders (33%) and individual collaborators or consultants (34%).

At least more than half of the companies specializing in software development are willing to switch to a subscription method in the near future.

Which means that subscription will be the model that many developers will opt for in the near future. The proper functioning and receptivity of the new strategy will depend to a great extent on how this transition is negotiated with the software purchasing companies.

Other studies show that monetization models most prevalent today are subscription (36%) and license (24%).

Therefore, subscription and similar models will be the 2 categories that will drive growth in monetization models. Experts estimate an increase in their use that could reach between 53% and 37% of the people surveyed.

Broadly speaking, software companies are looking for ways to move from software as a service to regular revenue.

While developers look for alternatives to guarantee a fixed amount of income, the companies to which their products may be destined, used to working in the conventional way, may not be able to move at the same pace.

Subscription models will take time to reach a majority position, however, the time will come.

The main challenge for software companies for the future.

Supplier companies must adjust price and value.

30% of surveyed software buyers say price and value are currently aligned.

Undoubtedly, confidence increases when it is not just about the intuition of the buyers, but about the data that proves the proper functioning of the service.

61% of companies that have collected usage data and are satisfied with the performance of the software, believe that what they pay for their tools is in line with the value they provide.

The lack of customer acceptance of new monetization models is precisely what has become the number one impediment to balancing price and value.

In the last two years, the main reason to change software monetization models was to implement a form of recurring income that allows entering new markets.

In short, without technology there is no progress, our society has been adapting to a rhythm of life where technology is part of the daily activities of human beings.

The software will continue to transform and impact different sectors in the world and indeed, a software development company is the ideal ally for companies to have cleaner, faster and more effective processes, counteracting response times and human errors.

At The Cloud Group we are specialists in developing custom software, we will analyze the specific needs of your business and we will propose the best technological solution to cover them.

You are one step away from improving your company, let technology work for you, if you want to know more, contact us.