How Cloud Computing Service Management is Evolving
March 2, 2015
Grazed from SocialMediaToday. Author: David H. Deans.
Cloud service management is going to become yet one more segment of the legacy enterprise software sector that’s being affected by the ongoing adoption of open-source software subscription models. The shift in end-user IT consumption preference to cloud services will trigger disruption and pressures old-school Infrastructure Management (IM) software vendors on two fronts, according to the latest market study by Technology Business Research (TBR).
Cloud consumption models rely on subscription revenue. The revenue recognition patterns for subscriptions are in stark contrast to the expensive software vendor license models that include ongoing maintenance support agreements, generally purchased after the first year of deployment. The shift to subscription models negatively impact margins as traditional IM software vendors shift go-to-market and delivery strategies to align with end-user consumption preferences — and the growing demand for a lower-cost IT operations model…
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