Some ISVs are behind the curve when it comes to changing their licensing terms to accommodate application virtualization.
Having one installed application that is streamed to many users, as is the model with application virtualization, versus a per-user licensing model, is one curve ball ISVs are mulling.
There is what analyst Mike Cherry with Kirkland, Wash.-based Directions on Microsoft calls a chicken-and-egg game going on: CIOs are waiting for word from their vertical ISVs on whether they’re going to adapt their licensing models for virtualized versions of their applications, and ISVs are waiting on CIOs to tell them to come up with licensing that reflects a virtual environment/application.
There are risks that CIOs can run into if they forge ahead and virtualize an application without first checking to see if the ISV can support that type of deployment. Cherry has seen companies do just that, only to be told by the ISV to put the application back on the physical server because the ISV doesn’t know how to fix the application when something goes wrong in a virtual environment.
And he’s not alone. Ty Schwab, CEO and founder of virtualization consulting firm Blackhawk Technology Consulting LLC in Eugene, Ore., has said that not enough companies are checking to see if the ISV is supporting virtualized versions of their applications, and not all software vendors have a plan for how they’re going to charge for their applications in a virtual environment.
He advises that CIOs test the application to make sure it can be virtualized, then call the software vendors to come up with a plan for how they’re going to charge you for licensing.
In addition to the cost of the software license, keep in mind that you will have to pay for the technology used to create a virtual application, such as SoftGrid, which Microsoft acquired and renamed App-V 4.5. Such software comes with a one-time fee of $2,000 to $5,000 for the application virtualization studio or administration console needed to design, repackage and virtualize applications. On top of that there is an application virtualization licensing cost of around $30 to $150 per application that is virtualized.
Have you already gone through the process of negotiating virtualization licensing terms with your ISV? Do you have any advice for others as they start down that path?
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