Microsoft’s Subscription Model: Signal That Software License Gouging May Be Over Or Death Knell To A Business Model?

Ziff Davis Enterprise “Microsoft Watch” writer Joe Wilcox published this deansguide article July 4, 2008

Reuters.com published this deansguide article July 4, 2008

In the face of the free-ware generation, copyright infringing masses, Microsoft corporation, the monolith of the 1980’s, and leader of the software licensing business model announced today that they are launching a subscription based model. This news begs the question:

Has the software industry, primarily Microsoft, seen the last days of price gouging through software licensing? Is this the death of the Microsoft business model?

Analysis

As a former national account manager for a software reseller, I managed the software utilization for one of America’s largest banks-Wells Fargo. In my experience within this niche, two things came to my mind immediately in 2001:

1. Rip Off: Companies were buying licenses and being ripped off by licensing requirements, lack of understanding of the price matrix, and the forced obsolecence of perfectly fine operating systems.

Note: Microsoft’s cash cow was based on planned obsolecence and they milked that bad boy to the hilt–killing the golden goose in the process

2. Sharing: rogue companies were already burning software, hacking packages, and attempting to proliferate their resources without having to pay exorbenant fees for the licensing of what they felt was their own property

Final Final

It is a new age with the onset of Web 2.0 readying the approach of Web 3.0. Transparency in business practices, shared intellectual properties, value based giving, and citizen journalism through the phenomenon called blogging has changed our business world forever–and for the better.

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