Blog
The change in software usage: cloud computing and used licences
The IT industry is known for its rapid pace of change - and the digital transformation is having a fundamental impact on the use of software. This makes it all the more important to look for cost-efficient solutions that meet the growing demand for software.
Advancing digitalisation is fundamentally changing the way software is used. In particular, the introduction of cloud computing and the emergence of software-as-a-service raise the question of whether it is more advantageous to use software in the cloud or on-premise, i.e. installed on a stationary basis. This question is not easy to answer, as both approaches have their own advantages and disadvantages. An interesting alternative is increasingly emerging: the combination of both approaches.
Cloud computing: flexible, but demanding
Users of cloud computing want to utilise the potential that the technology offers in certain cases. The ability to host software applications and data in a cloud creates flexibility and high scalability. This allows companies to utilise their resources in a targeted manner and adapt the capacities available in the cloud as required. In addition, there is no need to maintain hardware infrastructures on site, which helps to reduce costs. Using the cloud enables easy access to data and software from practically anywhere in the world and facilitates real-time collaboration.
Large companies in particular are pursuing a cloud-first strategy, in which the cloud is seen as the preferred approach for the development and provision of IT solutions. However, this strategy harbours the risk of blind spots. Determining optimal licence requirements is challenging and an incorrect assessment can lead to over- or under-licensing. The variety of payment models in the cloud, which vary depending on the type of use, also makes it difficult to control costs.
Cloud providers are often also software providers - so the decision to purchase a software licence often goes hand in hand with the decision to use a cloud provider. If software from other providers is also to be used in the cloud, the costs can quickly skyrocket. Another challenge in terms of usage: while on-premises software requires device-based licensing, cloud models require user-based licensing with complex administration of the licence via a cloud portal.
On-premise: legal certainty and price advantages
How can costs be kept as low as possible in this confusing web of licences and prices? Part of the solution is used software. In addition to cloud computing, the demand for used software licences has been growing steadily in recent years. Initial concerns about legal certainty have now disappeared and companies are recognising the major price advantages of buying used licences. Medium-sized companies are also considering the purchase of used software - often in parallel with the use of cloud subscription licences. Many companies have an extensive IT infrastructure and want to utilise their existing investments. By installing applications locally, they not only retain control over their data, but can also protect it according to their own compliance requirements.
The generally growing demand for software applications and the price increase in the cloud segment are contributing to the attractiveness of used licences. Customers are aware of the high costs of subscription models and recognise the savings potential of used software. In addition, used licences can be traded in at any time.
Used licences can also be used in the cloud - with the only restriction being that no subscription or rental models with the corresponding usage rights can be offered.
The best of both worlds: the hybrid solution
The most economical and advantageous way is to use hybrid licensing consisting of used on-premises and cloud solutions. A strategy that puts companies in a future-proof, flexible and economically sound position. Areas in which locally installed software brings strategic and economic benefits can continue to be managed in-house, while areas in which cloud products make more sense can be covered by cloud contracts. In this way, companies can take advantage of the scalability and flexibility of the cloud while retaining control over their sensitive data and making customisations.
On-premise or cloud computing? The strength lies in the combination of both approaches. A hybrid strategy, in which local installations and cloud products are used as required, offers the opportunity to fulfil the individual requirements of different areas and simultaneously benefit from the respective advantages.
Used software costs you little. Asking costs you nothing.
Contact us.
