Popular hosting industry blog, The WHIR, published an educational article authored by DXC SLMS Hosting expert, Kim Kuhlmann, addressing business growth potential with SaaS licensing. The article addresses “why” SaaS is in more demand from end-users, as well as a few examples of where SaaS as a licensing opportunity has been a key business driver for service providers, such as Windows 10.
According to the article, IT departments are shrinking, and moving software to a subscription model based in the cloud enables for easier licensing management from service providers who serve as external IT departments for businesses.
Second, a cloud-based subscription model enables for businesses to license software on a per-consumption basis. Projects come and go, and the scale of these projects can vary. SaaS licensing models enable organizations to scale their software needs based on timely consumption requirements.
Even research firm, Gartner, recently pointed to this growth potential: The shift to the cloud will soon be mandatory. According to the firm’s recent research:
“By 2020, a corporate ‘no-cloud’ policy will be as rare as a ‘no-internet’ policy is today, according to Gartner, Inc. Cloud-first, and even cloud-only, is replacing the defensive no-cloud stance that dominated many large providers in recent years. Today, most provider technology innovation is cloud-centric, with the stated intent of retrofitting the technology to on-premises.”
Gartner goes on to predict how organizations will embrace cloud offerings:
“By 2019, more than 30 percent of the 100 largest vendors’ new software investments will have shifted from cloud-first to cloud-only.”
Where’s the opportunity for service providers? The word “services” is key 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 license deployments for scale. And as software vendors such as Microsoft continue to enhance their software offerings, service providers will be the experts that help manage these upgrades and new features for their organizational clients.
Interested in More SaaS Licensing Opportunities?
Are you interested in learning more about hosted licensing opportunities with SaaS environments? The DXC SLMS Hosting team is available to help service providers grow by consulting on a wide range of Citrix- and Microsoft-based license and hosting environments. What questions do you have for us? Schedule a session today by clicking on this link. And don’t forget to join our social communities for additional conversation on Twitter, Google+ and LinkedIn.