Flexibility and Adaptability in all Stages of the Project with the Subscription Model

Returning to the previous post “SaaS (Software as a Service) and the Subscription Model” (if you have not read it, you can do so here), we can say that the subscription era has arrived. The concep...

Becolve Digital

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Returning to the previous post “SaaS (Software as a Service) and the Subscription Model” (if you have not read it, you can do so here), we can say that the subscription era has arrived. The concept is growing at an accelerated rate in both Europe and the US for all types of services. In the last decade, subscription models, such as Netflix for TV, Spotify for music, Adobe Creative Cloud for design services, among others, have been steadily integrated into our daily lives and businesses. Given the rapid penetration of the model, it is clear that companies and people are recognizing the many benefits of access to flexible and scalable technology on their terms.

In the world of industrial software, subscription models are radically changing the traditional perpetual license model and revolutionizing the way companies, partners and customers work together.

In the last fiscal year, AVEVA recorded record growth in subscriptions as companies sought access to transformative technology in an agile manner. According to leading EU consultants, subscription models are expected to grow at a rate almost four times higher than the traditional model in the next five years in industrial automation markets, with enterprise asset management and field service management software markets leading the global transition. But the question we all ask ourselves is:

What Benefits Will the Subscription Model Bring Me?

Financial Benefits

First, software subscription differs from traditional licenses because it allows customers to distribute payments and pay only for what they need as they go. This flexibility provides advantages to those who want to manage cash flow. In addition, through subscription licensing, the cost of using the software in the first year is much lower compared to a direct purchase. When you subscribe to software, customers pay only a fraction of the total cost in the first year. This means that software acquisition moves from the capital budget (CapEx) to an operating expense (OpEx) and capital expenditure can be reallocated to other expenses. Thus, customers can potentially finance other high-priority capital projects.

Flexible Access to Innovation

The subscription model also offers customers unprecedented access to technological innovation and transformation at a lower entry price, as well as built-in flexibility, scalability and customer support. Buy only what you need and scale as your needs change, while your cybersecurity needs are fully managed by the service provider.

For example, our “AVEVA Flex” subscription program offers customers the right to use and continuously receive software updates and innovations. One of the main advantages of this model is that, as soon as new features are incorporated into the application you are using, they are automatically available without the need to carry out a new implementation or purchase.

By removing traditional barriers to software adoption, customers can leverage key technologies and respond quickly to evolving market demands, without having to seek budget-level approval.

Architecture Flexibility

Architecture flexibility is one of the key features of this solution, as it allows to enable various common architectures and combinations, whether on-premise, in the cloud or hybrid. In addition, thanks to its excellent integration capabilities with a wide range of open and device-independent solutions, the implementation of solutions and architectures in different industrial applications becomes easy and simple.

With the ability to migrate from a tag-based model to an unlimited monitoring server, the solution offers even more flexibility to adapt to the changing needs of the project. In addition, the ability to adapt the architecture of the solution at all points in the project lifecycle, from prototype to design, commissioning and expansion, ensures a customized solution for each specific case.

In summary, the subscription model stands out for its adaptability and flexibility, making it an ideal choice for the current context of continuous change, where projects of different sizes and complexities are held in different industrial applications.

If you are interested in learning more about the different licenses and how we can help your company, we invite you to subscribe to the 45-minute webinar that will be held on April 13 and explore all the possibilities offered by this new program.