From subscription to on-prem licenses

Trend reversal

The experts, on the other hand, once again speak out in favor of classic on-prem software licenses and thus oppose the often one-sided and vendor-oriented reporting on cloud and subscription models. This is a recommendation that LizenzDirekt has been advocating for many years in numerous publications, podcasts and discussions. In a recent interview with The Register, Gartner recalls having warned as early as 2010 and 2012 about the loss of control over spending on cloud services. At the time, that warning fell on deaf ears among customers, and precautions were neglected. It is therefore hardly surprising that the extensive price increases, for example from Microsoft for 365 or from SAP this year, have caught many users cold.

“The advantages of classical licenses and the warnings of Gartner pointed out at the beginning are obvious“

Andreas E. Thyen,
Chairman of the Board of Directors, LizenzDirekt

As if that were not enough, the Handelsblatt recently quoted Gartner in a report that the software giant was implementing its conditions "brutally" in some cases. Microsoft's market power and business-critical dependencies make this possible. With classic on-premises software, on the other hand, the customer uses the software without immediate follow-up costs and usually for an unlimited period. "Of course, we are pleased with the recommendation from Gartner. Independent of commercial interests," sums up Andreas E. Thyen, Chairman of the Board of Directors of LizenzDirekt.