The rise of Software-as-a-Service (SaaS) over the past several years has led to an increase in the popularity of subscription software licenses. Subscription licensing pre-dates SaaS, but the cloud delivered nature of SaaS has naturally led to this increase in subscriptions.
At SafeNet we’ve seen this evolve in the past year where both enterprise buyers and software publishers are increasingly moving beyond subscription to a pay-per-use model for licensing software. We’ve seen this increasing demand for pay-per-use from our ISV customers who are delivering their software in the cloud, and from those that are providing on-premise software but who want to charge based on usage.
The IT industry is in the midst of a massive shift toward what IDC calls the 3rd Platform. The 3rd Platform is characterized by a proliferation of always-connected smart mobile devices coupled with the widespread usage of social networking, and layered over a cloud-based server infrastructure supporting important new workloads such as big data analytics.
The 3rd Platform is not just a technology revolution; it’s also a customer revolution. Unlike the previous generation of software, 3rd Platform applications will be designed for the consumer and enhanced for the enterprise. Consumer-like expectations for ease of acquisition and access as well as simplicity and transparency will dictate pricing models and payment terms. In addition, expectations for ease of use and interoperability will also be gleaned from consumer experiences.