The Huge Cost of Goliath’s Software Licensing Model for Enterprises

The Huge Cost of Goliath's Enterprise Software Licensing Model

The Huge Cost of Goliath’s Software Licensing Model for Enterprises 

Hey! Have you met Goliath? He’s a familiar leader of IT service management software. His suite of applications includes solutions for incident management, change management, asset management, and others. While Goliath’s products are highly regarded and have a significant market share, federal agencies and military departments alike have one major concern: the mammoth expense of his software licensing model.

The Giant’s Giant Licensing Model

Goliath’s licensing model is based on a per-user, per-month pricing structure. This  can incur considerable expense for organizations with large teams with large teams, particularly if many of the licenses are needed for casual users. This IT software pricing structure is in sharp contrast to other workflow management providers who often offer more flexible pricing options like: consumption (like ours), per-incident or per-asset pricing.

The expense of Goliath’s IT software license model is further compounded by his requirement for organizations to purchase a minimum number of licenses. This means that even if an organization only needs a small number of licenses, they still must purchase the minimum number. Obviously, this leads to considerable upfront costs which – on top of the time delay to value, – is heavily scrutinized today. It’s a great pricing model…for Goliath. But not so great for his customers.

Let’s Upgrade that Licensing Model!

Our Goliath’s license model is designed to encourage organizations to upgrade to the latest versions of his products on a regular, time-consuming basis. Of course, this can provide access to new features and enhancements. But it also means agencies and organizations must continually pay for upgrades. And, depending on the nature of the upgrade, it may require retraining users or even “break” integration points with other applications. Ultimately, this leads to ongoing costs.

In addition to the upfront and ongoing costs of Goliath’s license model, there are also hidden costs organizations must consider. For example, the complexity of his products can require additional training and support; this can add to the overall cost of the solution. Additionally, Goliath’s reliance on partners and consultants for implementation and support will also drive up costs.

The Moral of the Story

From where we stand, Goliath’s products are well-regarded in the market. But his costly licensing model is a valid concern for many organizations.

The per-user, per-month pricing structure, minimum license requirements, and ongoing costs of upgrades can all add up to significant expenses for organizations. Additionally, the complexity of his products and the need for additional training, support, and customization can drive up costs even further.

If the high cost of IT software licensing feels like a battle you don’t want to fight, consider Kinetic Data. We welcome the chance to help lower your licensing costs without sacrificing a thing. Let’s talk today.