Wednesday, February 8, 2017

Finally: Cloud Hosting Companies Find a Better Way to Sell Software

As a business owner, it’s your responsibility to account for each and every one of your organization’s software solutions, but do you know the exact value that your business is getting from them? This can be challenging when managing software solutions locally on each of your workstations, but the cloud makes this astronomically easier.
The Previous State of Software Management
Traditionally, determining the value of software has been difficult at best. The one variable used most often to find this value was the number of users. For example, if your business has 50 employees, you would want to purchase 50 licenses for a specific software solution. While this is great for the software provider, it’s a large expense for an SMB. Plus, are you even using every single program that’s installed on your workstations, or are you buying licenses for software that’s not being used (or not used as often as you’d like)?
Before answering this question, just take a moment to examine your own productivity suite. You might use the word processor and the email management solution, but how often do you actually use your slideshow creator? You might have programs which you’ve used only once to wrap up a project, but have never touched again. For others, you might never have gotten around to even trying them out. It goes without saying that this isn’t the best way to manage your software assets.
Software Management Now
The solution to this dilemma is clear; you only pay for software that’s actually used, rather than programs that might be used. It’s much easier to accomplish this than you might think, especially considering recent improvements in cloud computing. ITProPortal predicts that 2017 may allow for the most noticeable transition yet to cloud computing: “In 2017, the amount companies are willing to pay for software will be determined by levels of engagement rather than number of users. Cloud and mobile apps provide unprecedented visibility into these usage patterns, allowing companies to see more clearly how much value they get for their software. Smart companies are waking up to the reality that they should only pay for what provides demonstrable value. Slack has been on the cutting edge of this trend, and in 2017 other application providers will follow suit.”
Since your cloud provider hosts an application for you, they are privy to information providing them a detailed look at how the software is used on their servers. They can see how often the application is opened, how long each session lasts, and what the software solution is being used for. You can see how a tracking feature like this can revolutionize the way companies are charged for software.

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