The 451 Group: Current Enterprise Software Licensing Models Are a Major Obstacle to Increased Grid Application Deployment.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Evolving enterprise requirements and experimental, alternative purchase models will have a cumulative and disruptive impact on software licensing policies and practices; the results will extend beyond grid computing grid computing, the concurrent application of the processing and data storage resources of many computers in a network to a single problem. It also can be used for load balancing as well as high availability by employing multiple computers—typically personal and affect licensing for all enterprise software. The 451 Group believes current enterprise software licensing models are throttling grid computing deployments and that these models, which have been built around legacy concepts of enterprise application use, are presenting an increasing problem for enterprise IT managers as they pursue implementations of grid applications. Enterprise IT departments are finding that they can't afford to buy software licenses In computing, software that is copyrighted and licensed under a software license is done under a variety of licensing schemes. For end-users there are proprietary licenses and there are free software licenses, and there are proprietary Within these schemes are further classifications. for every processor or device in a grid for each application they intend to run on that grid - a necessity, under current licensing schemes. Grids, by their nature, consume resources dynamically, and this is a concept that is not well addressed in the majority of software user licenses. This reality is skewing the potential return on investment (ROI (Return On Investment) The monetary benefits derived from having spent money on developing or revising a system. In the IT world, there are more ways to compute ROI than Carter has liver pills (and for those of you who never heard of that expression, it means a lot). ) from grid computing programs - posing a formidable obstacle to grid application deployment. These findings are contained in a report - released today by New York-based The 451 Group, a technology industry analyst company focused on the business of enterprise IT innovation - which analyzes the role of enterprise software licensing models in early commercial adoption of grid computing technologies. 451 analysts have found that some enterprises have managed to avoid these software licensing challenges through tactics such as: --Using in-house-developed applications, often based on open source software --Negotiating customized deals with vendors --Paying a premium for one or two critical applications As the volume of grid deployments increase, demands for enhanced license models will increase, as well as demands for instrumentation and management to support new license models. Conventional license management models and pricing structures are problematic and extremely expensive for users seeking to run commercial applications on grids; thus enterprise IT departments will require more flexibility in the way software is bought and used. The 451 Group also believes emerging, alternative purchase models - just coming to the marketplace - suggest a change is underway that will have a cumulative and disruptive impact on vendor licensing policies and practices. Software licensing for grids must be seen within the context of other dynamics: the ability to proactively manage the use of software licenses based on business objectives and in dynamic, virtual environments is not a grid-only issue. Grids are an important inflection point Inflection Point An event that changes the way we think and act. -Andy Grove, Founder of Intel. Notes: For example, the fall of the Berlin Wall was an inflection point in global politics and the commercialization of the Internet was an inflection point in technology. in this transformation, but the issue is a broader one for enterprise IT. "The most that early adopters can hope for is an evolution of license models to achieve software licensing based on business objectives that balance customer needs and vendor business models," said William Fellows, Principal Analyst for The 451 Group and lead author of the report. "The challenge will be to offset the potential vendor loss of revenue on one side with greater value/lower cost and more flexibility on the other side. Customers will need to consider licensing issues when they make purchasing decisions, while the vendors will need to provide an abstract resource model that accommodates applications being run on virtual resources as in the case of grid computing." The report, 'Grid Computing - The Impact of Software Licensing,' is the fourth report in the 451 Grid Adoption Research Service (GARS GARS Gilliam Autism Rating Scale GARS Glycinamide Ribonucleotide Synthetase GARS Geological Applications of Remote Sensing GARS Groningen Activity Restriction Scale GARS Government Administrative Rate Supplement GARS Global Area Reference System ), an investigation into user experiences and vendor strategies. The 77-page report was written by William Fellows, Principal Analyst with The 451 Group, together with Steve Wallage, Director of Research, and Martin Schneider Martin Schneider (* 1964 in Bad Homburg vor der Höhe), often just called "Maddin", is a German comedian, cabarettist and actor. Biography Martin Schneider grew up in Burgholzhausen, a district of Friedrichsdorf. Today he is living in Marburg. , Analyst, Enterprise Software. The report includes user case studies, plus detailed comparisons of user experiences and views on various licensing issues. The report also analyzes the strategies and positioning of more than 20 vendors, from grid computing companies to license management, in electronic design automation (EDA (1) (Electronic Design Automation) Using the computer to design, lay out, verify and simulate the performance of electronic circuits on a chip or printed circuit board. ); business intelligence (BI); extract, transform, load ETL also means Express Toll Lanes, see Express Toll Lanes. Extract, Transform, and Load (ETL) is a process in data warehousing that involves
Key Companies Covered The report includes in-depth competitive assessments of the following vendor companies (although this is not a complete list of companies covered in various sections of the report): Data Synapse synapse (sĭn`ăps), junction between various signal-transmitter cells, either between two neurons or between a neuron and a muscle or gland. A nerve impulse reaches the synapse through the axon, or transmitting end, of a nerve cell, or neuron. , Hewlett-Packard, IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) , Platform Computing Platform Computing is a privately held software company that is primarily known for its job scheduling product, Load Sharing Facility (LSF). It was founded in 1992 in Toronto, Ontario, Canada. Its headquarter is in Markham, ON. , Runtime Design Automation, United Devices, Cadence Design Systems (company) Cadence Design Systems - A company that sells electronic design automation software and services. http://cadence.com/. See also Verilog. , Macrovision, ManageSoft, Synopsys, Business Objects, Fair Isaac, Informatica, SAS (1) (SAS Institute Inc., Cary, NC, www.sas.com) A software company that specializes in data warehousing and decision support software based on the SAS System. Founded in 1976, SAS is one of the world's largest privately held software companies. See SAS System. , Computer Associates, Chordiant Software, Citrix Systems, EDS (Electronic Data Systems, Plano, TX, www.eds.com) Founded in 1962 by H. Ross Perot (independent candidate for the President of the U.S. in 1992), EDS is the largest outsourcing and data processing services organization in the country. , Engineous Software, Novell and Searchspace. User case studies include the following early adopter companies: ABN AMRO, ARM, Acxiom, Boeing, Freescale Semiconductor, Intel, Micron Technology, Novartis and T-Systems. Report Orders To learn more about this report, or to discuss developing a client relationship with The 451 Group, contact Simon Carruthers, Vice President of Research Services, via phone at 212-505-3030 x-103 or via e-mail at: simon.carruthers@the451group.com. About The 451 Grid Adoption Research Service (GARS) The 451 Grid Adoption Research Service (GARS) - an investigation into user experiences and vendor strategies - extends The 451 Group's proven expertise in analyzing the grid technology market. This service analyzes the track record as commercial enterprise users introduce grid technologies to their core IT operations, and it examines the effectiveness of the strategies of vendor companies whose technologies early adopters are deploying. It is an extension of The 451 Group's analytical program on grid computing, which provides an assessment of customer demand, looking at the opportunities and challenges facing early adopters and covering adoption within key industries. It also presents the unique opportunities and challenges in specific vertical market segments. About The 451 Group The 451 Group is a technology industry analyst company focused on the business of enterprise IT innovation. The company's analysts provide critical and timely emerging-technology insight to clients at vendor, investor, services and end-user organizations - insight that aids both strategic and tactical decision making for competitive advantage. The 451 Group is headquartered in New York, with offices in key locations, including San Francisco, London and Boston. For additional information on the company or to apply for trial access to its services, go to: www.the451group.com |
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