In a recent article “Microsoft Windows Server 2016 to move to per-core licensing” by ZDNet, it was announced that Microsoft's Windows Server 2016 will be shifting from a per-processor to a per-core software licensing model.
According to the article, Microsoft® officials are shifting to align the licensing of its public and private cloud offerings thus simplifying software licensing across multi-cloud environments. The change also will align Windows Server licensing with the per-core licensing already offered for Azure, SQL Server and BizTalk.
The important question to ask yourself as an application producer is: If we can increase our revenue opportunities by shifting existing or adding new software licensing models – from perpetual to subscription for example – can we do it? Can we do it easily?
Market opportunities are aplenty with the rising adoption of cloud and virtualization, and many application producers are shifting to a subscription model as cited in a recent Gartner report, “Market Trends: Prepare Now to Smooth the Inevitable Transition to a Subscription-Based Business Model.”
As covered in a recent blog post, application producers that are rethinking their software monetization strategy need a clear definition and comparison of Software Monetization models, they need to understand the business case for adopting or adding new models well as the pros and cons, and lastly, they need to realize the operational considerations and impacts. Below are 11 questions you need to ask yourself:
- How will we handle pricing?
- What will the impact be on product numbering?
- When should the subscription period begin and end?
- What is involved in the renewal process?
- How will co-termination work?
- How will revenue recognition change?
- What product changes need to be made?
- Do changes need to be made to license key generation?
- What key areas of the legal agreement should be reviewed?
- Does sales compensation need to be adjusted?
- What is the best approach to roll out to customers?
For answers to these questions and more read the Rethink Your Software Monetization Strategy white paper.
Additional software licensing resources: