Software Updates Whitepaper

7/30/2019 Software Updates Whitepaper

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Software Updates and the

Customer RelationshipEight Issues That Impact Retention, Prot and Your Ability to Compete inTodays Tech-Centric Marketplace


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Why you should care about software updates?While one might expect that only software vendors would

care about software updates, it turns out that many intelligentdevice manufacturers and enterprises are also in the softwarebusiness today. In fact, many intelligent device manufacturersprovide customers with software add-ons or embedded softwarein hardware products. And, many enterprises develop customapplications for use by internal staff and independent dealers ordistributors. In all these cases, theres a growing need to managethe development, delivery and support of software on aregular basis.

In todays relentlessly changing business environment, thissoftware has to be updated constantly. Features have to beadded to address evolving needs. Fixes have to be providedto resolve quality and security issues. Updates to your softwaremay also be required because of how other vendors haveupgraded the other moving parts in the IT environment.

Many software vendors, intelligent device manufacturers andenterprises view software updates as an afterthought. But, in abusiness environment that is becoming increasingly dependenton software applications and devices with embedded software,the need to quickly and accurately deliver new capabilities ina cost effective, low-touch manner is critical to delivering anexceptional customer, partner and employee experience.The consequences of an inadequate software update processcan include:

Dissatisfied customersIf your software updates are too intrusive, too frequent, dontwork properly, or arent properly supported, your customers canquickly become dissatisfied. This can lead to the loss of theirbusinesseven if they dont have any major complaint about

your organizations core products and services. Dissatisfactionalso results if your software updates dont consistently addresswhat customers perceive as your softwares worst deficiencies.

Reduced profitsThe more software versions you have in your installed base,the greater your development, delivery and support costs. Not

having an efficient software update process and policy candrive up your operating and support costs. In addition, you

are probably missing out on maintenance revenues ifyou deliver updates to customers that are not paying forsoftware maintenance.

Lost market shareCompanies compete with each other based on theirperformance across the entire spectrum of value attributes.So if your organization can quickly and cost-efficiently roll outupdates that are well-aligned with the changing needs of yourcustomers, partners and/or usersand do so consistentlyyouwill gain a sustainable competitive advantage over thosethat cannot.

Increased risk exposureProblems with software updates can expose your organizationto all kinds of business riskssuch as interruptions of service,liability for customer business losses, erosion of brand value,and exposure of confidential information. An optimized updateprocess substantially mitigates your exposure to these potentiallycostly risks.

For these reasons and others, every organization should investin the optimization of its software update process. Failureto eliminate any shortcomings in this process will almostcertainly have an adverse impact on your top- and bottom-linebusiness performance.

Why is software updating such a challenge?Your software update process doesnt just require attentionbecause of its potential impact on your business. It also requiresattention because it is an inherently complex process with manypotential opportunities for inefficiency and error.

Several factors make software updating especially challengingand prone to problems, including:

All software updates are not equalThe chart on the next page provides a basic taxonomy of someof the update types you may have to manage.

Software Updates and the Customer RelationshipEight Issues That Impact Retention, Proft and Your Ability toCompete in Todays Tech-Centric Marketplace


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2. Well-defined version numberingNumbering conventions are critical when it comes toeffectively managing software updates and deliveringquality technical support. Organizations sometimes pushout small software patches without assigning them a numberat all, which can make the support staffs job much moredifficult. Development shops that use Microsoft SoftwareInstaller (MSI), on the other hand, have to conform to its

Major.Minor.Upgrade numbering format. To keep supportcosts and calls in check, it is essential to number allupgrades in a consistent and logical manner.

3. Clear frequency/installation policiesCustomers have plenty to do besides maintain yoursoftware. Yours is also not the only software they have tomaintain. So its important not to overwhelm them withfrequent updates and/or updates that require much timeand energy on their part (i.e. a full MSI package vs. aself-extracting .exe). Customers tolerances for updateactivity also varies depending on a number of factorsincluding how essential they perceive your software is totheir business. You should therefore adopt software updatepolicies that are driven by these customer tolerances andindustry standards.

4. Appropriate communication and transparencyYour organization should establish simple procedures fornotifying all appropriate internal and external stakeholdersabout software update content and scheduling. This preventstechnical support and account managers from beingblindsided when customers reach out to your internal teamwith issues. Proper notification gives sales and marketingthe opportunity to leverage planned new functionality tohelp close deals and gain a competitive edge.

5. Diligent testing/quality assuranceGiven their workload, it can be tempting for developmentteams to skimp on testing updatesespecially whenthose updates involve relatively small amounts of code.But experience reveals that sometimes even the smallestof updates can wreak havoc if those updates are notadequately tested. Inadequately tested updates causeunacceptable interruptions of service, they underminecustomer relationships, and inhibit the acceptance of futureupdates. Rigorous adherence to software test and qualityassurance best practices is thus essential for any and allsoftware updates.

6. Coherent software licensing and pricing strategyWhile it is reasonable to provide free updates andupgrades for a period of time, the value provided byimprovements and new features added to your softwareproduct may eventually warrant charging additional fees.It may also make sense to treat some updates as separatefunctional modules that are licensed separately. As a result,

you need to make sure that you have a software licensingand pricing strategy to support your software updateprocess and policy.

7. Clearly-defined software lifecycle with policies for end-of-lifeand end-of-supportAs new updates are rolled out, you may also have todecide which older software version(s) you will continue tosupportand which ones you will not, a sensitive issue if

your organization provides software as part of a broaderset of products and/or services. But it is simply not practicalor cost effective to keep your technical support staff fully

trained in many versions of your software. And becauseolder versions may also not be compatible with newercomponents of your customers computing environments, it isessential to have a clearly-defined software lifecycle policy.

8. Customer-centric update experienceThere are also a wide range of technical considerationsinvolved in fully optimizing the software update process inorder to safeguard the quality of the customer experiencewhile delivering the greatest possible value in terms offunctionality, performance, reliability, security and ease-of-use. These considerations include:

Are you going to ensure that customers can abandon anupdate if they encounter a problem?

How will you ensure that a failed update installationwont disrupt the customers ability to use your product?

Will you enable customers to easily roll back to aprevious version of your software if they are not happywith an update after they have installed it?

Are you going to digitally sign your software updates?

Will you make it easy for customers who have missedseveral recent updates to get current in a singleoperation?

Will software updates have to be unpacked before

deployment? Can you automatically check for other installed

components, operating system versions, or otherresources that may affect update installation?

Customer-centric updates should be determined based on actualcustomer preferences and market pressuresrather than on thewhims and exigencies of your development team.

The above is not an exhaustive list of all the issues associatedwith software updating. It does, however, provide clearevidence that your organization should probably engage insome thoughtful, collaborative planning if you want to ensure

that your software updating makes a positive contribution to theperformance of your business.

Why should you buy versus build a softwareupdate solution?With many business needs competing for your organizationsfinite resources, it is reasonable to ask why investing in asoftware update solution should be given priority. And secondly,

you must ask yourself, do you build a software update solutionusing internal IT and development resources or purchase acommercially available software update solution. A strategic,


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best-in-class software update solution is critical to yourorganizations ongoing success for ensuring customersatisfaction and retention, while helping you to increaseprofits and market share.

While some choose to develop their own software updatesolution and then try and maintain it over time, manyorganizations find that this option requires too much drain on IT

and development resources. In fact, most organizations realizethat a best-in-class software update solution offers so much morethan just software updates. A strategic software update solutionoffers a wide range of benefits that, when combined, create avery compelling case for investing in a commercially availablesolution, including:

Satisfied and loyal customersYour customers experience with your software updates overtime is central to their overall experience. When you improve

your update process, you dont just improve the mechanics ofinstalling periodic updates, you also improve the content of yourupdateswhich is a core element of your value propositionas well as your ability to provide technical support for thoseupdates. All of this translates into happier, more loyal customers.

Higher profitsA disciplined update process simplifies development, drives downsupport costs, and helps prevent unlicensed use of intellectualproperty. Improvements in your update/upgrade content alsohelps increase the total value your organization delivers to thecustomerwhich helps protect your pricing levels. Together, thesebenefits increase the profitability of every customer.

Gain market shareIn an increasingly crowded marketplace, it is critical todifferentiate your organizations product and brand. A strategic

software update solution does this by providing key in-productmessaging to your customers while they are using your product,which results in a better customer experience and more cross-selland up-sell opportunities for your products and capabilities. Bybetter aligning your softwares functionality with your customersreal needs you will see increased sales of your products featuresand functions.

Reduced business riskProblems with software updates can expose your organizationto all kinds of business risksincluding those resulting fromupdates that dont work right or that create information securityexposures. By minimizing the likelihood of these problems, an

optimized update process can mitigate exposure to financial,reputational, and legal risks.

Improved productivity and collaborationA strategic software update solution helps people from all areasof your business collaborate more effectively to understand andmeet your customers needs. It also helps support staff, accountmanagers and others become more productive by not wastingtheir time chasing down information on planned updates orsolving installation problems that could have been avoided.

The magnitude of all these benefits will only grow as usageof software applications become even more dominant in the

day-to-day work lives of customers, partners and internal end-users. Thats why, in an increasingly tech-centric marketplace,it behooves every organization to re-evaluate its approachto software updatingand to optimize its update processeswherever it makes good business sense to do so.

FlexNet Connect a strategic software update solution fromFlexera Software

FlexNet Connect enables you to lower software delivery andsupport costs, grow maintenance and cross/up-sell revenuesas well as drive better product decisions through installed baseinsights. FlexNet Connect automates software updates, softwarepatches, data and marketing messages while providing richreporting and business analytics on your installed base.

FlexNet Connect gives you the power to keep your usersupdated and informed while providing data on how theyuse your software, which is invaluable to strategic productdevelopment and marketing.

Derive deep customer insights Better understand your installed base with data on total

customer size, versions in use, and upgrade patterns Learn how customers value your software by seeing which

features are most popular Use real customer data to create better marketing campaigns

and more competitive products

Cut costs with electronic software updates Cut support costs by keeping users on your most current version Reduce product fulfillment, software upgrade delivery, and

renewal costs Increase customer satisfaction by proactively delivering

electronic software updates

Improve customer communication with in-product messaging Deliver marketing messages to customers and evaluators as

they use your software Target users based on their product version, location,

entitlement status, and more Reach all of your customers directly, even if they purchased

through a reseller

FlexNet Connect is a key component of the FlexNet ProducerSuite, and is offered as an on-demand service or as an on-premises solution. FlexNet Connect keeps your support costsdown and your customers happy.

About Flexera SoftwareFlexera Software is the leading provider of strategic solutionsfor Application Usage Management; solutions deliveringcontinuous compliance, optimized usage and maximized valueto application producers and their customers. Flexera Softwareis trusted by more than 80,000 customers that depend onour comprehensive solutions- from installation and licensing,entitlement and compliance management to applicationreadiness and enterprise license optimization - to strategicallymanage application usage and achieve breakthrough resultsrealized only through the systems-level approach we provide.For more information, please go to:www.flexerasoftware.com
http://www.flexerasoftware.com/products/flexnet-connect.htmhttp://www.flexerasoftware.com/products/installation.htmhttp://www.flexerasoftware.com/products/software-licensing-entitlement-compliance.htmhttp://www.flexerasoftware.com/products/software-licensing-entitlement-compliance.htmhttp://www.flexerasoftware.com/products/application-readiness.htmhttp://www.flexerasoftware.com/products/application-readiness.htmhttp://www.flexerasoftware.com/products/enterprise-license-optimization.htmhttp://www.flexerasoftware.com/products/enterprise-license-optimization.htmhttp://www.flexerasoftware.com/products/application-readiness.htmhttp://www.flexerasoftware.com/products/application-readiness.htmhttp://www.flexerasoftware.com/products/software-licensing-entitlement-compliance.htmhttp://www.flexerasoftware.com/products/software-licensing-entitlement-compliance.htmhttp://www.flexerasoftware.com/products/installation.htmhttp://www.flexerasoftware.com/products/flexnet-connect.htm


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