In this white paper, we explore the evolution in software licencing, and discuss practical steps to ensure the new models of software usage are harnessed appropriately according to business needs.
When a software licence is purchased, it is not owned it in the same way a car can be sold by its owner on eBay. Rather, software ownership is typically a non-exclusive, non-transferable licence to use the software. This form of ownership frequently leads to confusion about residual asset value.
A perpetual licence is static and ongoing, which means the software remains at the same version as at the time of purchase.
However, a software subscription provides a renewable program (often annual) to maintain the licence at the current version.
A shift to a subscription model is being adopted by many major software companies (including Autodesk, Adobe and Microsoft), and consequently, an operational reality that all businesses using software must face.
Rental subscription licences provide many benefits, such as lower start-up costs for beginners, and wider availability of high-end, professional software to a much larger group of users.
A major concern, however, is that without mature oversight and management, software usage in an open model can result in an unexpected bill at the end of a rental term. This is the equivalent of enjoying a credit card with no limit on a holiday, and then suffering the consequences in the following months.
With due consideration however, the rental model can be configured and optimised to bring major benefits to businesses. This paper explores the relevant concepts and concerns in this process.
Visit our White Paper Library to download ‘Harnessing New Software Licencing Options For Business’, PLUS gain access to all of our white papers.