One example of the pressures being applied to customers: At NET(net), we’ve long been advising our clients that they should expect and plan for regular and frequent software license compliance audits. And, as the common wisdom goes, once a customer moves their operations to a provider’s cloud stack, it will be very difficult to dislodge for a competitor (more on that topic later). Why would one of the richest companies of all time intentionally cannibalize its incredibly profitable licensing business, in favor of a much higher cost cloud hosting business model that is rapidly reaching commodity status? Because they have no choice if customers are not on Microsoft’s cloud, they will be on Amazon’s or Google’s or someone else’s. The ‘softies’, with great fanfare, are using every trick in their huge, complex, ever changing book of tyrannical licensing rules, to push their customers away from traditional licenses for on premise software, towards cloud subscriptions. Microsoft’s Enterprise customers should already realize that “Team Redmond” is in a desperate rear-guard battle to defend its incumbent monopoly positions in infrastructure software, against the increasingly successful insurgent attacks from Amazon, Google, and an ever-growing list of startups and disruptors.
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