The Lighter Side Of The Cloud – The Sticky Note
The Lighter Side Of The Cloud – Mother Always Said
The Lighter Side Of The Cloud – Google Apps Vs Office 365
The Lighter Side Of The Cloud – CIO
The Lighter Side Of The Cloud – The Storage Room

The Cloud Effect: A Dent In Traditional Software Pricing

The Cloud Effect: A Dent In Traditional Software Pricing

Cloud computing is altogether a different realm of end-user software delivery architecture. Cloud computing is centred around the remote availability of required software applications, ensured via a streamlined, subscription-based, over-the-Web service mechanism. This particular approach enables users to acquire very specifically what is needed, and only for as long as the requirement prevails. The scheme is utterly powerful and is being endorsed by plenty of customers. Estimates by Forrester Research indicate that more than 33% of ventures rely on the Software-as-a-Service model to get some of their applications delivered. The cloud-based services market is blooming, with an expansion rate as high as 20% per annum.

In addition to the way software is made available to end users, the dawn of the cloud computing era is foreseen as an unequivocal threat to the infamous conventional software pricing model. The move to the cloud is bound to disrupt traditional software pricing, giving rise to significantly altered consumer behaviour and inherently modified operational dynamics. Making the most out of cloud computing is not all about sheer technical expertise; a significant proportion of the package deal involves getting the pricing right.

A distinguished professor from the Wharton School of Business, Saikat Chaudhuri, is of the view that “The [pricing] disruption comes when bundles such as Microsoft Office don’t make sense anymore. Instead of big suites, lightweight applications will become the norm.”

Present-day customers are utterly vigilant with regards to over-priced software package upgrades that intrinsically bear costly hardware updates and escalated functional charges. Furthermore, ventures are naturally driven towards software applications that could effortlessly (and cost-effectively) be ported to novel environments.

Conventional software companies are naturally putting in a great deal of effort to somehow retain their market standing and, most importantly, safeguard their monetary returns. This is being achieved by introducing novel subscription-based pricing packages for their existing line-up of software products, and by procuring budding cloud-based solution providers in their entirety.

A cloud-centric model presents numerous ways to tailor the associated pricing as per scenario. The greatest advantage is the flexibility offered by adaptive pricing depending upon the client’s exact requirement. Availing a particular service from a cloud provider during an escalated demand period, for instance, would logically be charged higher as compared to the lower price associated with a similar volume during lower-demand spans.

It’s about time that ventures took note of the elastic pricing schemes associated with the cloud computing architecture to fully capitalize on their investment and anticipated returns.

By Humayun Shahid

Humayun

With degrees in Communication Systems Engineering and Signal Processing, Humayun currently works as a lecturer at Pakistan's leading engineering university. The author has an inclination towards incorporating quality user experience design in smartphone and web applications.

2 Responses to The Cloud Effect: A Dent In Traditional Software Pricing

  1. The shift to give customers a usage software-pricing model for software consumed in the cloud can eliminate over-priced software package. Rationally, a company starts paying for consulting before even buying the software and also pay throughout the life cycle of the product. Once software is deployed, vendor again charges for support, upgrades and maintenance for years to come. According to a study, the total cost of services for selection, implementation, maintenance and support ranges from 40% to 100% of the cost of software. Implementation costs for cloud products can reduce the cost to 20 percent less for on-premises software. Cloud apps are multi-tenant, so same software and costs are
    shared by customers. Cloud providers don’t also charge for maintenance and support.

  2.  @sarojkar This is the real beauty of cloud as it really has eliminated the hefty software+implementation-+maintenance costs associated with the traditional model. However, once figuring out the economy of cloud one shouldn’t just see the reduced flat monthly rental inclusive of support. A cloud solution might cost more than the traditional software if we calculate the rentals over couple of years of time and the business loss due to vendor down-time. 

Recent

Mobile Connectivity Rises – 24 Billion Networked Devices By 2019

Mobile Connectivity Rises – 24 Billion Networked Devices By 2019

Mobile Connectivity Rises Mobile Technologies such as BYOD, Wearable Technology and Internet of Things are the cornerstone to strong cloud computing adoption and will continue to be the case as the number of connected devices continue to climb. In May 2015, Cisco released the complete VNI Global IP Traffic Forecast, 2014 – 2019. Global highlights…

9 Pitfalls of Providing Cloud-Based Online Government Services

9 Pitfalls of Providing Cloud-Based Online Government Services

Cloud-Based Online Government Services Pitfalls When the US government designed the Affordable Care Act, a key part of the program was to encourage enrollment through the Healthcare.gov website. This online service was supposed to make it easier for citizens to learn about the ACA, compare their health insurance options, and take full advantage of this…

IOT, Intelligent Sensors, And The Change That Is Coming…

IOT, Intelligent Sensors, And The Change That Is Coming…

Intelligent Sensors And The Future What is or isn’t connected: In the end, that is the internet of things. They, the things, represent stuff that has been around for the past 30 years. It was only recently that we have developed a way to consistently connect those devices. Despite the increasing awareness of IoT, it…

Popular Archives

Surprising Facts and Stats About The Big Data Industry

Surprising Facts and Stats About The Big Data Industry

Facts and Stats About The Big Data Industry If you start talking about big data to someone who is not in the industry, they immediately conjure up images of giant warehouses full of servers, staff poring over page after page of numbers and statistics, and some big brother-esque official sat in a huge government building…

Five Reasons SMBs Fear The Cloud

Five Reasons SMBs Fear The Cloud

Five Reasons SMBs Fear the Cloud Fear of the cloud has been around since the Cloud began. SMBs were traditionally afraid of security issues, while large companies fretted about increasing the complexity of their IT infrastructure. What many budding start-up companies don’t realise is Cloud Computing helps place them on a level playing field with…

Sponsors

The Many Hats Of Today’s IT Managers

The Many Hats Of Today’s IT Managers

The Many Hats of IT Managers In years past, the IT department of most large organizations was much like a version of Middle Earth: a mysterious nether world where people who seemed infinitely smarter than the rest of us bustled around, speaking and typing languages that appeared indecipherable, yet, which made our world work. They…

Selling Your Business To Your Employees

Selling Your Business To Your Employees

Mobility For Your Employees It may seem a radical notion, the idea of selling your business to the people who work for you, but this is the era in which we now work. Employees of all levels are all incredibly aware of their options when it comes to mobility and employability. This doesn’t mean that…

Established in 2009

CloudTweaks is recognized as one of the leading influencers in cloud computing, big data and internet of things (IoT) information. Our goal is to continue to build our growing information portal, by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.

CloudTweaks Comic Library

Advertising