Written by Frank Schroeder
In the last years the License and Delivery Model for Software and Web Applications has changed dramatically. Let’s review the most commonly found types of license.
These 3 models are more less the most used basic license models we have seen in the last decades. Although there can be found a lot of different flavors and distinctions in the industry, such as: Feature based Licensing, Account based Licensing, Network Licensing, Hardware Licensing…
In the past years, licensing has moved more and more from a perpetual, user-based model to a subscription model. All major vendors like Microsoft, Oracle, IBM, SAP…offer both to their customers.
All this license Models are aligned with different license Agreements which regulate the details of the usage of the license, copyrights, warranties and liabilities and details on terms conditions.
In the 1990 ́s and even in the 2000 ́s state-of-the-art delivery model for software was “On-Premise”: the vendor delivered the software for download, on a CD/DVD, to install it at the computers/desktops or Servers at the client’s premise.
With the rise of the Cloud computing, additional options for delivery are getting more and more popular.
With the Cloud Computing and the new options for application delivery, software as a service (SaaS) came hand in Hand.
Wikipedia defines “Software as a service (SaaS /sæs/) as a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted. It is sometimes referred to as “on-demand software”, and was formerly referred to as “software plus services” by Microsoft. SaaS is typically accessed by users using a thin client, e.g. via a web browser. SaaS has become a common delivery model for many business applications.“
The term SaaS is part of the Cloud computing along with topics like Infrastructure as a Service (IaaS), Platform as a Service (PaaS).
Gartner is projecting a growth of 17,3% of public cloud services up to $206,2 billion in 2019 (https://www.gartner.com/en/newsroom/press-releases/2018-09-12-gartner-forecasts-worldwide-public-cloud-revenue-to-grow-17-percent-in-2019
Why is Software as a Service (SaaS) so successful in the last couple of years and topics and what are the issues to consider?
Cloud Computing, combined with SaaS, allows for a central hosting in the cloud, easy access via browser and licensing on a subscription basis, monthly or annually.
No doubt Cloud Computing and SaaS are a game changer in the licensing and delivery of software and web applications.
Nevertheless, companies need to consider how important it is for them to keep control over security and the data when deciding for one option or the other.
Maybe hybrid set-ups with cloud computing and on-premise can help here. Don ́t forget that internet performance and reliability can still be an issue in global set-ups.
When considering buying from software vendors, It could be wise to insure that the offer supports, beside SaaS model, also an on-premise model, to keep control while gaining flexibility.
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