The way we obtain, use & pay for software is changing fast on a number of levels today. Avid has at a subscription model, while Adobe & Microsoft are both moving there fast towards a subscription service. Software companies are also moving in a smart manner to directly own the customer relationship and cut out the middle man in the sales process as they aim to make the sales to the customers directly. One thing that is for certain is that we will no longer own the software on our computers in the future. So is any of this good? What are the benefits for moving to subscription software?
Let’s start off with the subscription models. Subscription models do one amazing thing with version numbers. A subscription model outdates software version numbers on day one. Every subscriber is automatically updated to the latest version of the software and the version of the software becomes irrelevant. The updates to software may be more akin to World of Warcraft in which all subscribers are all up to the same version of software (with exception to add ons). How subscribers pay, is another deal as each software company will have their own method.
Software companies want to own the customer relationship directly & will start to move away from 3rd party sales. This means you will be purchasing or subscribing to your software through an app store on a given platform or the web site of the software company. Software companies will be able to have direct contact with their customers and better control the flow of copies of their software as they may start to require internet sign-on & validation. Larger platforms like that of Apple, Amazon, Android, & Microsoft have app stores and control the apps, music, books & movies that are available to purchase while taking a portion of the profits.
With subscription software, the game changes for software companies. No longer will software companies be content with selling a certain number of units of software as they will shift focus on how to keep a long and on-going relationship with their subscribers. This means they become focused on how they can get their subscribers to be subscribers for life. Software companies must work hard to make their products compelling to stay with the services. Focus will change to making a better service & giving better value. This aspect will be good as the software companies goals will become more aligned with their members.
Cloud computing & storage is starting to become a theme with applications as you can save your documents into the cloud and access the documents on any computer you can sign-in with your software account. The cloud services are still in their infancy and have a ways to go, but look promising.
The dark side to subscription software is that when you can’t afford the software, your software goes away. *Poof* it’s gone. No more. Whether companies will store your data in the cloud until you pony up for the next payment is yet to be seen.
Personally, I am excited about the general direction in the future of software, and I wonder if we are even going to use the word software in 5 years from now or not. We are arriving at an age of apps and they are everywhere. There are many details to work out, and I am sure there will be bumps in the road, but they lead to a brighter place.
Bruce Heavin 