Virtualization Challenges Current Licensing Models

Since most suppliers developed licensing terms when software was tied to a specific system, virtualization and cloud computing environments, present challenges to many licensing and pricing models. As mentioned in this ZDNet Blog, in both cases, it is very hard to tie the use of a specific instance of a software tool or application to customer value.

"Both virtualized and cloud computing environments present challenges to suppliers. In both cases, it is very hard to tie the use of a specific instance of a software tool or application to customer value. In both cases, software instances run in an abstracted environment that can grow or shrink as needed. This stresses many suppliers licensing and pricing models."

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