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The Pros and Cons of Cloud-Based Software Licenses

Posted on 2023-04-13 17:06:30 by iNF
Technology Cloud-based software licenses Licensing Models Software Ownership Software as a Service Cost-effectiveness
The Pros and Cons of Cloud-Based Software Licenses

As our world becomes increasingly digital, businesses rely more heavily on software usage. Administrators who oversee their company's software portfolio have a lot of decisions to make, including the type of software and how to license it. While on-premise software licenses have historically been the most common option, cloud-based licensing is an increasingly popular choice. This article will explore the advantages and disadvantages of cloud-based licensing, and will help you decide if this licensing model is right for your business.

Pros of Cloud-Based Licenses

One of the biggest advantages of cloud-based software licenses is the cost-effectiveness. With traditional software licensing models, businesses have to pay a one-time fee for the software, which can be costly. With cloud-based licensing, on the other hand, businesses can pay for the software on a subscription basis, and scale up or down as needed. This means businesses can avoid large upfront costs, while still having access to the software they need. Additionally, cloud-based licenses are usually more flexible, enabling businesses to add or remove users as necessitated by changing business needs.

Cons of Cloud-Based Licenses

While there are certainly benefits to cloud-based licenses, there are also some negatives. For example, businesses that opt for cloud-based licensing may not possess the same level of ownership as with a traditional software license. This can include proprietary ownership of intellectual property, which could cause issues if there is a change in vendor or complications with vendor service. Additionally, if internet connectivity is lost or the cloud provider experiences service interruptions, businesses may lose access to their software.

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