Is Software Subscription a license game changer?

We have seen a shift over recent years, driven by the organisations such as Apple and Microsoft, to move from a software license model where you buy and own the software, to one where you have to renew your allegiance products year on year, by paying an Annual subscription.

Clearly there are advantages for the software companies here, in generating repeatable revenue, as opposed to getting a one off payment up front and nothing after. If you bought Windows 7, the the chances are you paid for that license years ago and have been using it for free, year on year since then, but if you take out a Windows 10 subscription, if you want to be protected, have your software bug fixed and be secure against hacking attacks you are now expected to dip into your pocket year on year.

But is it right and appropriate that all software companies move in this way, or should I still be allowed to use my tried and trusted version of a video editing suite, without being forced to pay, upgrade or replace, potentially losing functionality that works for me?

In this article from Engadget we can see Adobe doing just that. Now starting to claim that not only is that old version of Photoshop that you paid hard cash for, no longer supported, but in Adobe's view the license is no longer legal and requires replacing.

Its a bit like me owning a pair of Board shorts that I bought in 2005, every year I have worn them on holiday without issue, but this year I turn up at the hotel and the management says "Sorry sir, those are a crime against fashion and no longer legal to wear in this establishment!!" OK that's a bit stupid, but the message rings true, my shorts are still fit for purpose and cover all the bits they need to, so who has the right to say they are no longer fit for purpose? (And I know my wife has that right and exercises it regularly ;o)

The truth of the matter is that despite parting with you cash, Adobe cannot stop you using the software but they can stop supporting you and I will watch with interest to see if they are legally able to pursue removal of "unlicensed" software. What will be more worrying is if the users of that software are actually corporate users, how will that play out??

My guess is that if it shows up in a software audit, you will be asked to update the license and bear the cost or remove the software,

So as the software market slides towards a total subscription sales model, does that lessen or increase the need to control all the software installed in your corporate estate?

Sure, cloud based subscriptions such as Office 365 make the annual renewal process quicker and easier, but even with that model, if you are re licensing products year on year that are not being used, you could still stand to make some considerable savings by understanding what software is being used in your estate.

So maybe rather than worrying about implementing full License compliance, corporations would gain more value by just concentrating on the installed and used side of the compliance equation?

If you can understand exactly what software you are using regularly and report on numbers accurately, you will be much better placed to negotiate and manage the annual subscriptions that software companies are demanding, and ultimately in control of your overall software costs, making decision making easier.

Indigo Mountain is a solution provider that can work with your organisation to understand what you own and what is being used, get in touch to see how we can put you in control.