Software subscriptions

One of our current debates is the change from traditional, PC-installed software to web-based software.

Even Microsoft is switching. Microsoft in addition to its classic PC software "Office 2013" which is installed on your local PC, now offers the subscription package "Office 365".

It's a big change, and many folks are concerned. System admins worry about the new procedures for signing up with new software services. Managers fret that an update could change file formats, and locally stored documents in old formats may become unreadable. Ordinary users find the concept of renting, not owning, their software a bit disconcerting. A few folks are aghast to learn that their software could disappear after failing to pay for the subscription, and have railed against the increased cost and the greed of software vendors.

Yes, I know that software is usually licensed and not sold. But most folks think of current PC software as sold, regardless of the licensing agreement. It is this general understanding that I consider to be important.

Let's run a thought experiment. Suppose technology was going in the other direction. What if, instead of starting with purchased software and moving to subscriptions, we were starting with subscriptions and moving to purchased software?

In that change, people would be complaining, of course. Users would be hesitant to move from the comfort and convenience of subscription software to the strange new world of installed software. System admin types would grumble about the additional work of installing software and applying updates. Managers would fret about compatibility, fearing that some users would have old versions of software and might be unable to share files. Ordinary users might find the concept of "owning" software a bit disconcerting. I suspect that a lot of people would be aghast to learn that they would have to pay for each device they used, and rail against the increased cost and the greed of software vendors.

Such a thought experiment shows that the change from ownership to rental is big, but perhaps not a bad thing. The decision between PC-installed software and web-based software subscriptions (or mobile/cloud subscriptions) is similar to the decision to own a house or rent a condominium. Both have advantages, and drawbacks.

My advice is to experiment with this new model. Start using web-based e-mail, word processing, and spreadsheets. Try the file-sharing services of SkyDrive, Google Drive, and DropBox. Learn how they work. Learn how your organization and use them. Then you can decide which is the better method for your team.