Fears regarding software licensing management are preventing organisations from adopting these new technologies: of those planning to implement on-demand services or who prefer on-premise solutions (68 per cent of the total), almost half (49 per cent) believe it will cause issues with managing security and over a third (37 per cent) believe it will make it more complex to manage software costs. In addition, 16 per cent think on-demand solutions will increase licence costs – 22 per cent think they will stay the same, and 34 per cent are unsure of the impact on software costs.
For those who have already implemented Software as a Service (SaaS) solutions (32 per cent of the total), 42 per cent have suffered licensing issues. This included greater complexity in cost (28 per cent), security (25 per cent) and management (19 per cent). However, at the same time 38 per cent believe that on-demand solutions have simplified software management and usage. Furthermore, 34 per cent have found that the solutions have improved visibility of where licences sit and who is using them, and that licence costs decreased.
When it comes to virtualisation, the situation is similar: while 38 per cent of those using or planning to use virtualisation technologies (which included the majority – 93 per cent – of respondents) thought it would simplify licence management, many think it will have a negative impact on software licensing:
· 27 per cent believe virtualisation is more complex when managing software costs
· 17 per cent feel that software security management will be more complicated
· 10 per cent believe it will be more difficult to detect who is using which software and applications
· 12 per cent think virtualisation will increase licence costs – 28 per cent think they will stay the same, and 16 per cent don’t know what the impact on cost will be.
“While the on-demand and virtualisation vendors tout the technologies’ IT management benefits, the licencing issue is, as yet, unsolved for most UK organisations,” said Chris Holland, vice-president of software rights management at SafeNet. “However software is delivered, you need to know how it is licenced, how to manage your licences and what the cost and security implications are. If the suppliers do not communicate this clearly to potential customers, the widespread adoption of the solutions will be limited.”
Due to the potential licensing issues with new technology, more than three-quarters of organisations (77 per cent) said that flexible licensing was important when making software application purchasing decisions. Indeed, almost eight in ten respondents reported that at least half of their software purchasing decisions are influence by licensing terms. The licensing models essential for making the best use of software applications in the organisation included:
· Concurrent user features: required by 87 per cent of respondents, rising to 94 per cent in large organisations (over 3,000 staff)
· Offline access to applications: 50 per cent
· Access to applications for mobile workers: 35 per cent
“Getting licensing right is absolutely vital to a software application’s success,” said Holland. “Organisations are very aware of what they need to get the best use of their software investment. So, as new technologies are developed and marketed, appropriate licensing models that are clearly communicated will be the difference between a product’s success or failure.”
About the study
This research was conducted by Vanson Bourne in September and October 2009. It surveyed 100 IT directors from UK organisations with more than 2,500 staff, across five main sectors: financial services; retail, transport and distribution; manufacturing; public sector.
About Vanson Bourne
Vanson Bourne is a specialist IT market research consultancy, whose clients range from global corporations to small, highly specialised start-ups. The company provides research expertise and market insight using analysis and advice based on incisive and rigorous research into their market environment.