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Intelco Subscription -
An Overview

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Subscription News & Articles

Jan 2006 - Software Subscription Survey.
Intelco conducted an email survey of IT suppliers , focussing on their understanding of, and interest in software subscription. To see the complete results, click here.

"Key Trends in Software Licensing" Macrovision, SoftSummit, SIIA & CELUG - October 2004.
According to the survey, software vendors are moving aggressively to the subscription model while enterprises prefer perpetuals to subscriptions 2 to 1. This is surprising given that enterprises have been decrying the high upfront costs of software and asking vendors to better align software pricing with value.
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"Users gain flexibility and influence with new software pricing models" Information Week - 19/04/2004
Some industry analysts predict subscription-based licensing models are about to break into widespread acceptance as alternatives to perpetual licenses, the status quo in the software industry. Research firm IDC last month predicted "dramatic shifts" in software business models as a growing number of customers shop for more flexible licensing options. "Vendors that can't accommodate these models will eventually be at a competitive disadvantage," predicts IDC analyst Amy Mizoras Konary.
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"Subscription Software is Sweet" The Motley Fool - 05/04/2004
The reasoning is simple: In a maturing industry, selling licenses through a subscription model bolsters vendors' revenues. Paying a monthly fee to use software is cheaper and less risky than buying software outright and hiring staff to support it. So, in harder times it's easier for corporate customers to swallow the subscription model. At the same time, vendors spend less on high-cost salespeople and invest more in serving customers with call centers and technical support. Those higher revenues and lower costs go straight to the bottom line.
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"Siebel lets software become a service" ZDNet UK - 26/05/2004
The firm is embracing the rental model as customers increasingly demand more sophisticated ways to pay.
The new reality - Siebel may have picked a great time to make its move. According to a forecast released on Tuesday by market researcher IDC, the prevailing method of selling software -- offering a perpetual license to a package of software, as Siebel has traditionally done -- is in decline. At the same time, selling software subscriptions -- the Salesforce model being one example -- will grow.
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