| Featured Articles With 128,000 employees and annual revenues of $86.8 billion, Microsoft is a mega-corporation. It is the third most valuable company in the world by market cap and its software powers the majority of home computers, industrial and financial systems. So, when Microsoft announces a change in direction, it's worth taking notice. One advantage of subscription licensing is that it cuts down on software audits; it is a lot harder to mess up software licensing compliance with a cloud model, since software in the cloud cannot be pirated or used out of compliance, and software installed on local machines but licenses on a subscription basis is regularly checked via the cloud. It looks like Oracle CEO, Larry Ellison, might be taking a page from his late friend, Apple co-founder Steve Jobs. Jobs and Apple were famous for forcing users to upgrade to new technologies when they felt the old technologies not longer made sense. Now it appears the Ellison and Oracle are doing the same thing when it comes to moving from on-premises software licensing system to subscription-based software-as-a-service offerings. Oracle is using what many call the nuclear option to push businesses away from perpetual licenses and toward the new subscription model. By providing customers with subscription services, for example, high tech companies improve the buying experience of customers because they can continuously evaluate the hardware, software or service. Experiences customers have using these become paramount. High tech companies could investigate how this new model supports business strategies, increases their chances of possessing the underlying capability blueprint to support new subscription models, and affects their operations. Top Stories TMCnet Free Premium Content | | | Advertise With Us | | Become a TMCnet columnist! Become a TMCnet columnist! Want to contribute your expertise to a growing audience of technology professionals? Become a writer, blogger or columnist for the TMCnet Web site and this newsletter. Contact TMCnet Group Editorial Director, Erik Linask, at elinask@tmcnet.com for details. | | |
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