Software Rentals
I’m sure this isn’t a completely new concept (maybe it is and I’m coining terms here…cool!) I know there’s companies out there already look at this as being the future. But, I don’t think it really has caught on a lot out there from what I can see. I’ve really never heard about this in any of the tech news feeds, blogs, forums, or podcasts I listen to on a weekly basis.
So, let’s look at how things work now. Typically, if you want a piece of software for your computer, what do you do? You go out to a store (either online or BNM) and you throw down cash or a credit card, and then you get either a box with some media or a download, CD/license key, and the manuals. Now you’re off to install the software on your trusty PC (or Mac, ugh!) at home.
That’s fine for software that costs, eh…let’s say $50 or less. But most folks will baulk at having to spend more than that for a piece of software. Applications like Photoshop, or Microsoft Office, or AutoDesk Maya end up making your PC’s total cost of ownership (TCO) much higher, and in some cases such as people that are freelance designers, the software cost can easily outweigh the cost of their computer.
Sometimes you don’t really even need to use the software for all that long. If you happened to be a contracter or a freelance content creator, you may only need certain software packages for a few months at a time. With the cost of having to buy it and the also purchase the upgrades as well, a few months of use can be very expensive for someone that only needs an application for a short time.
How about renting software? Short term rentals, or timed keys that expire after a certain date. Even better, what if you didn’t have to actually install the software?
There’s a business model out there waiting to explode…the ability to call up Microsoft or Adobe and ask them if you can rent a copy of Office or Photoshop for 2 months, and then be done with it. Maybe you need it indefinitely. If you signed up for a subscription to an applicaton package, you could always be assurred that you are going to have the latest version because your subscription entitles you to it.
What about delivery? Well, there are companies out there already that have software virtualization and streaming solutions which would allow you to run your rented/subscribed application locally on your PC without actually installing it, and you can get the latest version every time you run it. Symantec is one such company that is already doing this for the coprorate environment with their product Altirs SVS Pro. It wouldn’t take much to transition the corporate use of this kind of technology over to a public use with a subscription model and public delivery mechanism.
We’re already seeing the landscape of things change a bit with the concept of “cloud computing” (hey, wouldya look at that, I’m writing this on a Cloudbook PC). People are tired of the old software model and way of doing things. There are a lot of people that won’t spend $500 for an office suite with features that most people don’t even use. But if you could subscribe to that same office suite for say, $10/month, and you get the latest version every time you run it…that might be more attractive to some. Plus, it creates a constant revenue stream for the software provider.
It’s only a matter of time before this shows up on the landscape more. The music industry is already going through these kinds of changes (with growing pains included), the film industry will be next…and then software. Change is good, it’s what keeps us moving ahead.
Posted in Tech | 
