Why Software is Moving to a Subscription Model, and Why It’s a Good Thing
Excerpts from the article by Seth Wilson on ProtectedTrust.com
You may have noticed over the past five years more and more software moving away from being available for a one time purchase and instead offering a monthly fee service to use it instead. If this seems like a tactic to get more money out of you, that’s because it is, but it’s also for the best.
Gartner reports that “by 2020, more than 80 percent of software vendors will change their business model from traditional license and maintenance to subscription.” So this isn’t something you’re going to be able to avoid as a consumer of software, and frankly, you shouldn’t. As a business, if you want to stay competitive and keep your data secure, you should embrace this change. Here’s a little bit as to why this change is so exciting.
Subscription software stays secure
Recent cyber attacks like WannaCry, Bad Rabbit, NotPetya, and most recently Meltdown/Spectre are big, scary, complex attacks all with the exact same solution: keep all your devices’ software updated at all times with no exceptions. After phishing, vulnerabilities in old software are the most common way for criminals to breach your company’s data and it’s making them serious money. As in BILLIONS of dollars a year from businesses just like yours.
Subscription models ensure you’re continuously running the most updated version of the software possible, and not just the most updated version of old software. This is why Microsoft is even moving towards selling businesses Windows as a subscription. This is the most exciting thing to happen in IT in the past 10 years, but more on that later.
Comes with cloud services now
One of the best examples of why subscription software is better than the old way of purchasing software is the massive differences between Office 2016 and Office 365. They share the name “Office,” so it just sounds like you are getting office 2016 as a subscription. Which you do, you get the whole office suite, but you get so much more with it.
Because Office 365 is connected to the Microsoft cloud, you’re able to collaborate on files in real time. Do you use a file server or shared drive? Office 365, with its terabyte of storage per user enables you to chuck that thing in the trash (it’s what we did and you should too). Backup your files? You don’t need to do that anymore.
Do you have software that tracks mileage, does your accounting, manages projects, provides group chat, shares files, hosts video and voice meetings with screen sharing, manages customer communication, books appointments, etc.? Office 365 has all this functionality, and you can access from anywhere in the world. Office 365 leverages the Microsoft Cloud to not only provide you with the best suite of productivity software ever made, but a solution you can securely run an entire business with. It’s a game changer.
Getting features to the market faster
Subscription software rolls out features as they are ready, not just when a new version comes out. You used to have to wait years between releases of software to get new features. Not sure with the subscription model. When a feature is ready for prime time you get it immediately without any further investment.
Only pay for the software you’re actually using. As your employee count fluctuates so to does your cost. It’s less expensive to on board a new hire because you don’t need to pay for their software all up front. And when an employee exits, you simply cancel their user and you stop paying for the software.
The best software subscription ever is now available
As we mentioned earlier Microsoft is now selling businesses Windows by way of a new subscription-based product called Microsoft 365. Why do this? It comes down to device management, and this is what has got traditional managed IT service providers very nervous. Microsoft 365 gives even small businesses truly enterprise-grade device management tools that make once difficult IT tasks easy or simply unnecessary.
These tools keep your devices safe, and keep the data on your employees’ devices from being compromised. If you lose a device or part ways with an employee you can immediately remove just your companies data from that device instantly while leaving everything else intact.
In addition to truly enterprise grade device security deploying new devices becomes a breeze. Say your device falls into a volcano. No problem, grab another one, enter your username and password, and in no time you’ll be back up and running with all of your applications and data how you left them.
Companies that properly implement what Microsoft 365 has to offer see their IT demands plummet. Instead of installing updates and deploying new workstations your IT staff can focus on the company’s mission. No longer worried about keeping you up and running but where you’re running to.
If this all sounds like crazy talk, or you’re ahead of the game, and know that you are ready for a truly modern, connected office, give us a call, get a road map, and see how these changes not only bring a ton of value to your company, but can actually save money. We’re here when you’re ready.