All Access Creates New Software Licensing Model
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Embarcadero has created a new "All-Access" licensing model that provides organizations access to its entire portfolio of database, application development, and systems design tools through membership levels that unlock different tool combinations. This model aims to simplify licensing while providing options to meet different needs. It offers the tools through a centralized installation that can be accessed based on membership level. This model may appeal to organizations looking to reduce costs and licensing complexity. It provides an alternative to traditional licensing and could be followed by other vendors.
All Access Creates New Software Licensing Model
- 1. Butler Group Subscription Services www.butlergroup.com OpinionWire 19 February 2009 EMBARCADERO CREATES A NEW VARIATION ON THE ‘ALL-YOU- CAN-EAT’ LICENSING MODEL Written by Rob Hailstone – Software Infrastructure Practice Director, Butler Group CATALYST Every time there is a fundamental shift in either the economic climate or the way that we deploy IT systems, it seems that changes to licence structures become part of the way the industry comes to terms with the broader changes. A reasonable balance has to be struck between adequate compensation to the vendor for the investment made in creating the software and the recognition of value by the purchaser. Innovations in licence models rarely come from the small set of established major vendors – generally maintaining the status quo is more to their advantage in sustaining their existing revenue streams. Rather, it is the vendor organisations trying to open up a new market or break in to an established market that have the most to gain. Embarcadero has thrown a new ingredient into this pot, in its ‘All-Access’ variant on the ‘all-you-can-eat’ licensing model. IMPACT Embarcadero provides a range of tools for database administrators, application and Web developers, architects, and system designers. Through acquisition and internal development it has ended up with a broad portfolio of tools. For IT managers, managing individual licences for different users would simply add extra complexity to the already difficult task of ensuring that effective use is made of all the different licences from a multiplicity of vendors. Embarcadero’s All-Access provides the whole tool-chest of products in one centralised installation, which can be unlocked by the appropriate membership pass. Instead of a simple all-or-nothing model, Embarcadero provides bronze, silver, gold, and platinum membership levels that unlock different combinations of tools for different levels of requirement. Membership is priced such that an organisation needing more than two or three tools can benefit from the All-Access model over the per-product licensing (which will remain available). There is still the ability to choose between network or workstation licences. Under the network licence mechanism the server holds a current inventory of licences and can manage named or concurrent users depending on the customer’s preferences. On top of these choices Embarcadero will make a form of application streaming available to enable zero-installation client deployment. Embarcadero calls this ‘InstantOn’, and it will be extended from a few individual tools to the whole of the All-Access tool-chest later on this year. ANALYSIS At times when IT budgets face considerable constraints, user organisations are more inclined to reduce costs by purchasing suites with broader functionality rather than individual best-of-breed tools. This initiative is well-timed to appeal to organisations that are looking to reduce costs, as well as simplify their licence arrangements. Traditional licences based on servers or processes are not likely to be workable for much longer as we move to greater exploitation of virtualisation, cloud, and Software-as-a-Service (SaaS). The two realistic alternatives are pay-per-use and ‘all-you-can-eat’. Pay-per-use is likely to be more appropriate for large-grained functionality such as applications or services – in the Service Orientated Architecture (SOA) context – but not manageable for fine- grained resources or utilities. The disadvantage of ‘all-you-can-eat’ is difficulty in providing sufficient choice so that the customer can select between different levels according to individual needs. This is necessary in order for the customer to easily justify the value to the business. Analysis without compromise
- 2. OpinionWire www.butlergroup.com Embarcadero seems to have achieved a nice balance here with the simplicity of licence management together with sufficient options to appeal to a broad set of user requirements. It is a model that we feel other vendors will follow. Headquarters: Australian Sales Office: End-user Sales Office (USA): Important Notice Shirethorn House, Butler Direct Pty Ltd., Butler Group, This report contains data and information up-to-date and correct to the best of our knowledge at the time of 37/43 Prospect Street, Level 46, Citigroup Building, 245 Fifth Avenue, 4th Floor, preparation. The data and information comes from a Kingston upon Hull, 2 Park Street, Sydney, New York, NY 10016, variety of sources outside our direct control, therefore Butler Direct Limited cannot give any guarantees HU2 8PX, UK NSW, 2000, Australia USA relating to the content of this report. Ultimate responsibility for all interpretations of, and use of, Tel: +44 (0)1482 586149 Tel: + 61 (02) 8705 6960 Tel: +1 212 652 5302 data, information and commentary in this report remains with you. Butler Direct Limited will not be Fax: +44 (0)1482 323577 Fax: + 61 (02) 8705 6961 Fax: +1 212 202 4684 liable for any interpretations or decisions made by you. 2 more information on Butler Group's Subscription Services please contact one of the local offices above. For Butler Group OpinionWire – 19 February 2009 © Butler Direct Limited