Earlier this month Citrix announced that as of October 1st, 2020, they will be ending the availability of the Digital Workspace perpetual software licenses in favor of a new subscription-based licensing model. Citrix already offered all of its cloud services in a subscription model, but the same model will now be used for Citrix Workspace on-premises solutions. This change will affect Hogan clients who use Citrix Workspace, so here’s what you can expect.
The Benefits of a Subscription Service
A subscription-based service has benefits for both clients and vendors, and many Citrix clients have already chosen subscriptions voluntarily. 59% of total bookings in the Q3 2019 came in the form of subscriptions, compared with 42% in the prior-year quarter.
The technology industry as a whole has begun a shift away from perpetual license models in favor of the subscription model, largely due to the following factors.
Lower Upfront Cost to Clients
Perpetual software licenses have high upfront costs that can be prohibitive to business owners for several reasons. The initial cost can be a burden in and of itself, especially for expanding businesses. In addition, the investment in a perpetual license can be a compelling reason for companies to maintain stagnant technology. With its new subscription-based model, Citrix will create flexibility for companies who were hesitant to leave behind their current software. Clients will also be free to expand their existing Citrix deployments to meet growing demand without making a long-term commitment. Citrix hopes to retain clients by “making the commitment to exceed your expectations to retain you as a future subscriber.”
A perpetual licensing model often means multiple invoices for clients due to maintenance costs and enhancements, whereas subscriptions offer businesses one all-encompassing invoice. This invoice will include software license costs, support services, training resources, and future solution enhancements. Your organization then has more flexibility to make payments on a schedule that aligns with your company’s current accounting practices.
Transitioning to Subscription-Based Citrix Workspace
While you may have to tweak your budget when transitioning to the new subscription-based Citrix Workspace, the functions and benefits of the service will remain unchanged. This transition is simply Citrix’s attempt to offer greater flexibility to its clients.
Speaking about the transition, Citrix COO Mark Schmitz said, “While the trend for subscription-based technology solutions accelerated with cloud services, Citrix recognizes that not every customer is ready to make the move to cloud services. This is why Citrix is introducing its on-premises digital workspace solutions in a subscription licensing model to meet our customers’ needs. Now all on-premises Citrix solutions are offered in a subscription model giving you, our customer, choice of deployment location, and purchasing option.”
Hogan is readily available to answer any questions you may have about this transition or about our managed services, including managed Citrix environments. You can reach us at our headquarters in Chesterton, Indiana by calling (219) 921-1141. Or, if you would prefer, contact us through our website.