Published: 25 April 2019
Analyst(s): Consult the Board Research Team
This summary contains input from three members regarding approaches toward managing license portfolios, asset management, sourcing, and vendor strategies as vendors shift from traditional licensing models to more flexible, pay-as-you-go or subscription-based models. We begin this summary by discussing members' usage of pay-as-you-go or subscription-based models, their key drivers, and, in particular, the contractual terms essential for negotiating subscription-based contracts. We then look at members' cost models for procuring software and IT services via pay-as-you-go or subscription-based models, and identify software costs allocated for software, licenses, and services. We close by examining members' strategies for managing the cost impacts of new pay-as-you-go or subscription-based models, as well as the effects that transition from traditional to a pay-as-you-go or subscription-based models has had on members' vendor management offices.
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