Gartner Research

Enterprise Licensing Strategies

Published: 25 April 2019

ID: G00401717

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.

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.