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Cloud Won't Cure Licensing Woes
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zerox203
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zerox203,
User Rank: Ninja
9/2/2014 | 10:52:03 AM
Re: Cloud Won't Cure Licensing Woes
Here Here! This is an ongoing point we see being made about Cloud (or, for that matter, any technology) cannot be used as a bandage to to cover up long term problems in corporate IT. Licensing is no exceptions. If you had a problem with it before, odds are, you're going to have a problem with it now. All the extra material provided in the full issue linked at the bottom explains the how and why, for those that want a little more detail and plenty more numbers to back it up. It's a complex web we've weaved with modern software licensing, but it's not unsolvable - just take it one piece at a time.

Of course, you're also right to suggest, Doug, that at big organizations, that's easier said than done... and that education and communication are the keys to getting it right. That education and communication, too, can be difficult at a sprawling organization with diverse needs. It depends a lot on your culture - that is, whether or not your CIO can go to your CMO and convince him not to 'go rogue' has a lot to do with what kind of relationship your CIO and CMO have to begin with. Best practices certainly go a long way, too;  outlining the how and why (with dollar signs) instead of coming down with an iron fist is definitely the way to go.
D. Henschen
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D. Henschen,
User Rank: Author
9/2/2014 | 10:35:40 AM
Clouds upon clouds, options upon options
Consider the cloud poster children, Amazon.com and Saleforce.com. The initial appeal is pay for only what you use, but both companies have come up with so many options and licensing plans, keeping track of costs has become very complicated. It's not just $65 per-user, per-month for sales force automation, for example. Now you're likely using multiple Service Cloud and Marketing Cloud options on top of SFA. So maybe you'll go for that all-you-can-eat Enterprise deal, but have you stopped to add up the costs over five years?

No, you can't get the same kind of agility with on-premises software, but the complications and all-in-costs of the cloud route have to be considered with the same rigor you'd apply to software investments. 
Li Tan
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Li Tan,
User Rank: Ninja
9/2/2014 | 9:48:02 AM
More complicated licensing model
This is the situation currently we are facing. Cloud computing is not designed to solve licensing problem. With the introduction of SaaS and pay-per-use, the licensing model is much more complicated. You need to consider not only license fee for the software, but also the function you used, how long you need to use it, even what features you use.
Li Tan
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Li Tan,
User Rank: Ninja
9/2/2014 | 9:47:59 AM
More complicated licensing model
This is the situation currently we are facing. Cloud computing is not designed to solve licensing problem. With the introduction of SaaS and pay-per-use, the licensing model is much more complicated. You need to consider not only license fee for the software, but also the function you used, how long you need to use it, even what features you use.


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