fbpx
 

Licensing Profit Margins to Implode?

Gartner analyst William Snyder addressed software licensing at the Gartner Emerging Technologies Conference a little over a week ago, highlighting that software profit margins will erode, pricing will increase, all due to the fact that only a few big players exist in the market creating a oligopoly. Software budgets are continually under pressure from CEOs hoping to use a large portion to invest in new technology, when in reality they end up blowing their whole budgets on maintenance and licensing fees.

Snyder points out that evolutions like BPO or Business Process Outsourcing and open source will be what puts a dent in the software market. Negotiation with software vendors will change when there are more options. Oracle and SAP will be competing with outsourced solutions that will allow companies to utilize advanced applications without the headaches of maintenance. 

We’ll keep an eye out to see if Snyder predictions have any legs – he predicts software licensing margins to decrease as markets move toward open source and SaaS.  Our guess is that it’s doubtful that licensing – such as Oracle licensing – will go away.  ERP systems like Oracle, SAP and Microsoft are part of the life’s blood that keeps companies functioning.  To remove it would be as painful as removing and replacing a body’s blood vessels.

Leave a Comment

Your email address will not be published. Required fields are marked *

*
*

Contact Us

If you have an urgent question regarding your software licensing or a software audit, please contact Miro right away.

Phone:
(732)738–8511 x1208
Email:
Webchat:
Use the chat box on the right
Meeting:

About Us

Miro is a leading global provider of software asset management services, specializing in license management, audit advisory, negotiation tactics, support management, and cloud services. We help our clients maximize ROI on their software license investments, stay in compliance, and minimize the impact of audits. Miro's performance guarantee promises that our long-tenured, diverse, and passionate team of expert analysts provides insightful and actionable advice to help our clients achieve the best possible outcomes.

Performance Guarantee

Miro’s no risk Performance Guarantee is that the amount of cost savings that we uncover will be more than our fees.

Managed Services for Oracle Licensing

Miro’s Managed Services for Oracle licensing is a best practice approach for an organization to optimize and outsource the practice of Software Asset Management to specialized external experts to ensure the organization’s compliance with vendor rules and policies.

Learn More