Cloud economics

License to kill

Using commercial software and paying expensive licenses is old school and no longer necessary. Cloud provide you with flexibility and you only need to pay for what you use. No investments necessary.

In May I’m sure many of you, including myself, was looking forward to the release of the new James Bond film, with the famous slogan – License To Kill.

Unfortunately, due to Covid-19, this film premier has been postponed but the reality of License to Kill within IT-licenses and infrastructure has never been more important than now.

We are in contact with roughly 150 companies across Sweden every month, mainly to understand where the market is at this point of time and how we need to align to be able to meet the market with their challenges.

In the past few months the market has really changed, most companies are “pulling the handbrake” and cutting down their variable costs, freezing new initiatives etc. What comes to a surprise is the number of licenses many companies have, everything from Office365, different on-premise & cloud platforms which are based on traditional license models which are core based and very expensive.

When buying licenses, with a traditional license model, you buy a capacity up-front which you are planning to use during a longer term, usually between 1-5 years. Of course, during this period, you are able to “scale up” and purchase more cores. But overall you will always be paying for more than you need at the point of time of the purchase.

Traditional on-premise platforms when scaling will have the following effects:

  • Additional cores
  • Additional servers
  • Not fully utilized 
  • Generate additional costs

This is costing companies across the globe huge amounts of money which could be spent on better things or even in these uncertain times also saved.

Here are a few examples:

  • On-Prem infrastructure
  • Integration platforms, Enterprise Service Bus
  • API-Platforms
  • Identity & Access Management platforms
  • Service & Assessment Platforms

The list is long and most likely you are running one or several at your workplace today.

So what’s the solution?

Both from a license and an infrastructure perspective the Cloud is the obvious choice this enables you to both scale up and down. At TIQQE we purely focus on AWS and the capabilities to scaling, not paying up-front license costs, pay for what you need at this point of time are all the key points to moving to the cloud.

Ask yourself if you need to renew your licenses anytime soon. Do you want to buy more licenses or do you want a second opinion?

We have all the tools in place to quickly identify your costs today and what the costs would be if you would instead operate in the cloud.

This blog is mainly focused on a cost saving perspective but there are many more examples what the cloud provides you with.

I really recommend checking the following blogs out:

4 ways of reducing cost and increase liquidity

Jacob Welsh

Leave a Reply

Your email address will not be published. Required fields are marked *