How to mitigate virtual desktop licensing surprises

It’s unsurprising to see legacy providers shifting their business models from perpetual software licensing to subscription-based pricing. Some do it with a measure of grace. But lately, some licensees of virtual desktops and applications have been confronted with abrupt changes and even forced to accept and pay for unwanted features. However, there are ways for alienated customers to protect their best interests.

This past year has been rife with complaints over a substantial licensing change by Citrix after it was acquired by private equity firms and merged with TIBCO Software. Those changes remarkably parallel a playbook that VMware customers experienced in the wake of their vendor being acquired by Broadcom.

For those paying close attention, substantive changes were foreshadowed in 2023 when it was quietly noted that perpetual software maintenance licenses would not be renewed upon expiration. Even those paying attention back then have been hit with what they consider even more egregious changes, and some are citing licensing cost increases of 300% or more.

Specifically, some organizations have griped that while they asked for renewal terms six months or more before their deadlines, those requests went into a dark hole until as little as 30 days remained on their current agreement. That’s too late for an organization with substantial numbers of users—or even just a few—to evaluate and prepare for a switch if they so desire.

When they receive a replacement, er, “renewal” proposal, surprises abound. First, separately licensed products are now “features” within a universal license. For most, that means paying for shelfware they’ll never use while absorbing sometimes astounding price hikes from what they were accustomed to.

Some organizations are coming away from licensing discussions convinced they can only obtain 3-year or 5-year agreements! So much for pay-as-you-go subscription models and winning your customer’s trust every day.

Moreover, many are being shifted to new support models while being gaslighted the changes are in their best interests. Only select customers—by invitation only—are being offered platform licenses and support. Most are being shifted toward channel partners. Not only that, but channel partners handling 2,000 or fewer licenses have themselves been shifted to a third-party provider.

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