Payment for the number of users and payment for the space consumed. Just what it takes.
The Cloud is so flexible, against the traditional model of software sales. Now small businesses can have the same applications as the big ones. Simple, if the company is large will hire temporary licenses for 200 users and if it is small for 4, when they want to reduce or extend the Cloud allows it with complete ease.
Applications do not stay large or small. Companies can have resources adapted to their needs at any time, the peaks of use of programs are no longer a problem, not relying on hardware is considered a blessing by many entrepreneurs.
Pay-per-use is undoubtedly one of the biggest advantages of Cloud Computing.
This philosophy is proving so devastating that it is changing the foundations of the software market. Traditional software distributors or servers are in full identity crisis.
The reality is that no one is clear how the model will evolve. Neither the Cloud companies themselves nor the distributors.
For a distributor it is impossible to continue as before. You can not sell a product in person, with the visit of commercials that make demonstrations, if nothing else out the door, someone from the company finds a similar product on the Internet at a much better price and above is flexible at the time of hiring the necessary resources.
A good analogy could be the evolution of the sale of airline tickets. In the end, the travel websites gained the departure to the agencies, that although they have not stopped existing, they have a marginal presence in the sector. The agencies have been left for those travelers of a certain age who do not handle very well on the web. In addition, you just have to go to an agency and you will see that the agent does the same as you would do, look for a search engine.
For a while there will be commercials that sell servers and licenses.
Make no mistake about the previous example of Travel Agencies. It is not the same to acquire an airline ticket and a hotel reservation as a software for the company.
The factor “trust” is much more important when acquiring a program, if that program is in the Cloud is something ethereal and causes initial doubts and fear. Cloud? what is that? There are age and cultural factors that influence all of this.
An application or system sold in person increases its price by up to 600%. That’s the reality. That is what it costs someone to visit the company and provide confidence to the person in charge of evaluating the software. Travel websites do not pay for local streets, or people who advise or look for airline tickets on the Internet for us, can reduce costs by saving these expenses they do not have. Cloud applications do similar to these travel websites.
There are conflicts and conflicting concepts. As Elon Musk says, people rely on the known despite much better alternatives.
We have thousands of companies that understand that Cloud storage is what Dropbox or Drive offers them, they acquire and use them, despite compromising privacy, breaking the law, and not being functional in enterprise environments. Regardless of the prestige the guarantees offered by the products in the Cloud, it is automatically trusted in what is known. It is as if we only went to the movies to see the typical American movies, the ones that have been announced even in the bus shelters.
There are really alternatives and developers who are focusing on professional applications, but once known something is not sought. Non-searching and misinformation create the environment for the face-to-face sale to continue to function.
The most direct way to overcome the barrier of trust today, let’s face it, is face-to-face selling, which on the other hand, is really the only asset left to software distributors to continue to place their products not Cloud.
They lack the advantage of the cost savings that the payment by use produces, it is incited to the companies to install servers that most of the times are like a suit that they are left great and will be old in a short time. This is happening now with the public institutions that are wasting public money with “iron” or servers and equipment that perform exactly the same functions as cloud solutions that are much more efficient, economical and pay for consumption.
The payment for use came to stay
There is no turning back. The one that tests the model of payment by use that the Cloud provides, no longer wants to hear of old models of purchase of hardware or licenses. In this world, the rent beats the property.
Let’s look at the big ones of the computer science, all are orienting their model of sales in this sense. I know firsthand what is moving in Microsoft, IBM or Oracle. The commitment to the Cloud is final.
In transition to a combined model.
Everything will be in the Cloud and will be paid for use. At the end this model will be imposed.
jump to new model
It will change the way in which the face-to-face sale takes place and there will be no hardware installations in the customer’s premises. Having a data center in a City Hall is an outrage and a huge waste. The software commercial will have to know in depth the existent Cloud solutions and will have more a didactic and organizational work than of man in suit that uses a Powerpoint. Remember that if the applications are really Cloud, they are on the Internet and the customers themselves can start using them in minutes.