End of Software, The: Finding Security, Flexibility, and Profit in the On Demand Future
by Timothy Chou
Evolution, Not Revolution
Traditional software companies are evolving their software licensing models and beginning to add separately priced management services to manage their software. Leading this change in license models is Microsoft. Recently, it introduced Licensing 6, which essentially encourages businesses (or anyone else who buys more than five copies of a single Microsoft product) into buying “software assurance” contracts. The new agreement takes away version upgrades and requires enterprises to pay up-front for a two-or three-year upgrade contract. If customers choose not to do that, they must pay the full price when they do upgrade. Microsoft says Licensing 6 is a win for its customers because they are assured of getting the latest ...
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