Comment Hosted service model... (Score 3, Insightful) 360
IMHO this is where MS would like to go. Having a hosted web service model gives a dependable revenue stream that makes the Wall Street analysts salivate. Knowing that you have X numbers of users paying Y amount/month is a reliable predictor of future revenue.
This also allows MS not to worry about license revenue and allows them to control the spitgot. If you can turn a service off or on then you put a serious clamp on the pirating of your software.
The company I work for is in the final stages of turning off the licensed customers. The code line is deadended and will be eliminated in the future years. The only way to get our service will be to pay a user fee for out hosted web service.
This is great for the company because we now control updates, releases, etc. and don't need the customers permission. We turn on access for new users and when the users get to a certain number we add a few more machines to the server farm. We use the same open source applications to provide the web servers and leverage the databases to handle many clients on the single license.
Over time we have seen the 'cost per transaction' reduce and the 'cost per deployment' reduce but we still charge the same amount. This increases the margins and thereby increases our profitability.
MS would love to get to the same place.
This also allows MS not to worry about license revenue and allows them to control the spitgot. If you can turn a service off or on then you put a serious clamp on the pirating of your software.
The company I work for is in the final stages of turning off the licensed customers. The code line is deadended and will be eliminated in the future years. The only way to get our service will be to pay a user fee for out hosted web service.
This is great for the company because we now control updates, releases, etc. and don't need the customers permission. We turn on access for new users and when the users get to a certain number we add a few more machines to the server farm. We use the same open source applications to provide the web servers and leverage the databases to handle many clients on the single license.
Over time we have seen the 'cost per transaction' reduce and the 'cost per deployment' reduce but we still charge the same amount. This increases the margins and thereby increases our profitability.
MS would love to get to the same place.
