This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
It's time for seat-based software licensing to end
25-Mar-2009 -- Kas Thomas, Analyst
Economic downturns tend to accelerate change in the IT world: People with budgetary authority find themselves taking a fresh look at what they're spending money on, how and whether IT investments are paying off, why bad investments are not paying off, and what to do differently going forward.
Given the situation we're in, now might be as good a time as any for potential buyers of software systems -- and licensees whose contract renewals are coming up -- to declare war on per-seat pricing.
Seat-based pricing has been declining in popularity for some time (everyone I know hates it), but like a weed growing out of a crack in the sidewalk, it never seems to go away entirely. In theory, per-user pricing is rational because it allows costs to scale in a predictable (and fair) fashion, according to an organization's size. But in reality, there are many problems with the "headcount equals usage" notion, the most obvious being that if nine people touch the system once a month and one person uses it eight hours a day, seven days a week, you still need 10 seat-licenses even though nine out of ten users are offline at any given time.
Another popular scheme is the "named user" approach. Here, the vendor requires you to list the names (and quite often the roles) of each and every person and process that will access the system in question. But questions arise: What if User A changes roles (or leaves the company)? If a whole department is laid off, will you get reimbursed for unused licenses? Are licenses transferable across departments -- or geos? Even if you can abide the basic terms, named-user licensing tends to be a compliance nightmare -- especially for large organizations, where administering partially overlapping license pools for dozens or hundreds of users and products can be hideously time-consuming, even when the process is semi-automated.
In general, seat-based licensing is burdensome, complex, and difficult to manage. It also encourages overbuying. One wonders: Why does it still exist?
Model: Motel-Based Licensing –The Foundation for Consortium-Based Licensing
“Rooms” (partitioned blades) are pre-furnished with generic images, apps, etc. Users “check in” and use the room on a lease basis, (plus “room service”) = low-budget, (one-night stand) personal cloud.
Model: Motel-Based Licensing–The Foundation for Consortium-Based Licensing
Other rooms are more lavish, and have pre-configured images at-the-ready and are provisioned dynamically by the motel’s image/software “room service” depot. These are in steady-state, private “rooms” and always ready for your “occupancy” and use. Your configs remain “static” until re-activated or modified by you = state-room cloud.
Model: Motel-Based Licensing–The Foundation for Consortium-Based Licensing
Other floors are completely “wired” with multiple rooms for your use and the use of others as allowed by you. These are fully-customized on-demand lavish work environments populated with your images, HPC and GRID platform and access. You write your own sub-lease for others to “use” your cluster of rooms = custom condo cloud.
Open Source and Proprietary Software in Cloud Computing
Peaceful co-existence
Proprietary vendors need to provide “bridge” mechanisms and new licensing provisions for users to shuttle seamlessly between OPS and PS
API code libraries and Open Access to and from PS software is a good starting point; &/or “open” some low end apps
Consortium and project-based licensing models will be “a must” if proprietary vendors want to leverage the OPS marketing opportunity (“try it—you’ll like it” upgrade to PRO)
Drag and drop “write your own” licenses
Vendors must come up with a “creative commons” type universal platform licensing agreement (“boiler plate”)
Each of the colored circles represent virtualized images of SAS software, competitors’ software and Open Source software currently being used in a typical university setting that has adopted a centrally-hosted management implementation of a shared (distributed) computing environment in which users (teachers and students) “call” applications, tools, operating systems and “raw” onto bare metal in a tightly controlled and regulated partitioned-blade HPC environment in an ad hoc manner for teaching and learning. The partitioned blades are either accessed via previous. The colored circle represent “images” or “objects.
= SAS “high-end” solutions, or “A” product line. Image creation is more complex, use more sophisticated, and cost is higher to the University both in terms to LEASE from SAS and to operate on the University computing platform.
= SAS “medium-end” solutions, or “B” product line. Image creation is less complex, easier to run and use, and less cost to LEASE and less overhead of the University to host and maintain.
= SAS “commodity” tools, or “D” product line. Image creation is even simpler, easier to run and use, and less cost to LEASE and less overhead of the University to host and maintain. These tools are FREE for ANY PROFESSOR or STUDENT to use at no cost, provided that they have the Master License in place. These might be GRAPH, for example. They are NOT open-sourced but are free in this licensing and lease agreement context.
In App PurchaseSell extra content and services from your application using the Store Kit framework. This new framework helps you keep track of your product catalogs, processes the payment transaction with the iTunes Store and returns information about each purchase. Learn more
Start developing the next generation of innovative mobile applications now. Join the iPhone Developer Program to test your applications directly on iPhone and distribute them to millions of customers around the world on the App Store.
In 1986, NetJets pioneered the concept of fractional aircraft ownership. Today, NetJets is the worldwide leader with the most Owners, the largest
fleet, and the most experience. With NetJets Fractional Aircraft Ownership, you gain all the convenience, access, and time advantages of owning
a whole aircraft but at a fraction of the cost and without any of the responsibilities. NetJets hires the pilots, maintains the planes, attends to the logistics, and ensures your safety. To oversee your needs on every flight, a dedicated Owner Services Team is assigned to you. And we back up your
investment with the financial strength of Berkshire Hathaway.
Licensing and Provisioning for Community Colleges in Virtualized Cloud Computing Environments—Standing Committee Create a proprietary vendor “task force” to meet and convene
around these issues (SAS, IBM, Maple, etc.)
Solicit a volunteer committee of NC Community College administrators, faculty, IT and technical professionals for input and guidance
Representation of members and technical staff of NC State’s VCL
Establish a NC Community College Governance Board to insure compliance and uniformity of policy and process implementation as we move forward