Why license software as a service for your business?

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Kim Kuhlmann is Senior Client Advisor for HPE SLMS Hosting.

One of the most significant and recent examples of software evolving into a model as a service (SaaS) recently occurred with Microsoft’s decision to offer a cloud-based monthly subscription package for the Windows 10 operating system (Secure Productive Enterprise E3 and Secure Productive Enterprise E5). These are bundled with other things like mobility and security tools, as well as Office 365.

A handful of key reasons have pushed companies like Microsoft in this direction, all of which have a huge impact on businesses, from start-up to company-wide. First, IT services are shrinking and the shift from software to a cloud-based subscription model allows for easier licensing of service providers who serve as external IT services for businesses.

Second, a cloud-based subscription model allows businesses to license software based on consumption. Projects come and go, and the scale of these projects can vary. SaaS models allow organizations to tailor their software needs to meet consumption needs in a timely manner.

The decision to migrate Windows 10 to SaaS was born out of Microsoft’s success with Office 365, which has been a cloud-based offering for a few years now and loved by businesses large and small.

The timing also coincides with the change in business philosophy driven in large part by the cloud itself. Businesses of all sizes are moving many of their operations to the cloud, and everything from content management to social media management and customer relationship management activities now also resides in the cloud in a SaaS environment.

This change is also impacting a larger technological image that goes beyond commercial use. As more and more software resources move to the cloud, this will have an additional impact on the broader spectrum of the interconnection of people, technology and “things”, known as the Internet of Things. objects (IoT). SaaS models are at the center of this evolution.

Clearly, the days of the shrink-wrapped software box are over, and now everything lives and is licensed in the cloud, managed by an external IT service provider.

According to research firm Gartner, the move to the cloud will soon be mandatory. According to the firm’s recent press release:

“By 2020, a ‘no-cloud’ corporate policy will be as rare as a ‘no-internet’ policy is today, according to Gartner, Inc. a position that has dominated many major vendors in recent times. years. Today, most technology innovations from vendors are cloud-centric, with the stated intention of modernizing on-premise technology.

The company goes on to predict how organizations will adopt cloud offerings:

“By 2019, over 30% of new software investments from the top 100 vendors will have moved from cloud first to cloud only.

SaaS licensing models also enable a more seamless user experience across multiple devices now used in businesses. From laptop to tablet and mobile device, subscription-based, cloud-centric software access enables a seamless user experience, no matter what device they are on, with virtual access wherever it is. This is also beneficial for the workflow involving remote employees from different regions all wanting to access the same files and data.

Finally, the word “services” is essential in the SaaS relationship. Service providers acting as external IT departments can help manage the software and application experience, which includes security offerings and managing large-scale license deployments. And as software vendors like Microsoft continue to improve their software offerings, service providers will be the experts to help manage these upgrades and new features for their organizational customers.

Industry Perspectives is a Data Center Knowledge content channel highlighting thought leadership in the data center industry. See our guidelines and submission process for more information on how to participate. Check out previously published Industry Insights in our Knowledge Library.


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