We recently finalized a commissioned Q&A with Amy Konary, IDC’s Vice President of Research on Software Licensing & Pricing. We asked Amy for her expert opinion about the key elements companies should consider to properly align the benefits of cloud based services with the associated licensing agreements.
Ultimately, IDC’s recommendation is “that IT buyers consider the ability of the vendor to support a range of licensing and deployment options across its breadth of products.”
The Microsoft licensing vehicle which best delivers on what are frequently hybrid scenarios is the relatively new Server and Cloud Enrollment (SCE); a new enrollment under the Microsoft Enterprise Agreement that offers the best pricing for customers who make an installed, base-wide commitment to one or more of Microsoft’s server and cloud technologies, with automatic access to Windows Azure and simplified licensing management. You can read more about the SCE in a previous blog post which includes numerous links to additional resources.
What follows is the introduction to Amy’s IDC Analyst Connection piece. To read the full document entitled “Key Software Licensing Considerations for Next-generation Enterprise Environments” you may download it from IDC directly HERE or from the Volume Licensing Analyst Report page HERE.
Intro section from IDC Analyst Connection
The IT industry is in the midst of a massive structural shift toward what IDC calls the 3rd Platform. The 3rd Platform is the next-generation compute model characterized by a proliferation of always-connected smart mobile devices, coupled with the widespread usage of social networking, and layered over a cloud-based server infrastructure that supports important new workloads such as big data analytics. This momentum is disrupting the software business whereby subscription models are now growing much faster than traditional license models. Going forward, the market will see increased adoption of consumption-based models including pay-per-use and other approaches. Because of the increased complexity that will be introduced, software vendors are working to offer flexibility in their licensing programs so that customers can begin to migrate to cloud-based models without having to revise their licensing agreements.