According to Gemalto’s ‘How Software is Powering the Hardware Renaissance’ report, 84% of organisations in the sector are changing how they operate, with 37% changing to a full shift software-centric business model.
The research also found that 94% of respondents have increased their investment in software development in the last five years.
Germany is leading the change, with all German organisations questioned saying they have boosted their software-based services over this time; with France second (98%) and the US (93%) in third.
‘Businesses see IoT benefits’
Hardware technology companies are already reaping substantial benefits – of those that have changed their models, the average increase in revenue has been 11%.
As well as revenue growth, businesses that have moved to software-based selling have seen other benefits.
These changes are also having a positive impact on employees, with 64% of businesses retraining their employees and 58% hiring new employees.
Businesses are also starting to notice IoT benefits, with 88% of businesses surveyed saying IoT is driving growth in the industry.
‘Clear competitive advantages’
Shlomo Weiss, senior vice president for software monetisation at Gemalto, said: “Companies who adopt software-based revenue models will reap three main benefits: long-term relationships with their customers, predictable revenue streams, and a clear competitive advantage.
“From gaining insight into product usage to pay-per-use payment structures and on to new market penetration – all the companies we surveyed identified a real need to transform how they do business.”
Independent technology market research specialist Vanson Bourne surveyed 300 IT decision makers across the US, UK, France, Germany, and Japan on behalf of Gemalto’s report.
Written from press release by Leah Alger