Hybrid licenses: often the best solution
The cloud is efficient, uncomplicated and cost-effective. This assessment is not always true. It often makes more sense to combine cloud and on-premise solutions. This results in so-called hybrid licenses.
What is a hybrid cloud?
Anyone looking at cost optimization of software licenses will sooner or later come across the term hybrid cloud. What exactly is it all about?
IT experts always speak of a hybrid cloud when more than one solution is used – whereby one must be cloud-based. The following come into consideration:
Public cloud: companies use the provider’s online network, completely eliminating local administration.
Private cloud: deployed over an internal network or the Internet, with non-public access. The private cloud offers more control.
On-premise: Software is used via local workstations with permanently installed software. IT administration is required, data remains in the company.
Cloud and on-premise – a contradiction?
The cloud is often seen as a replacement for the local license. From a basic principle, it is actually the case that many companies are abandoning their on-premise applications and moving completely to the cloud. Why would anyone hold on to on-premise software? There are several scenarios for this.
Option 1: Leverage existing licenses
Companies usually have a well-developed IT. This includes having licenses for programs such as Office or Windows. Depending on the model, such software licenses are still valid for years. When switching to the cloud, these investments already made would be lost, because the locally used software would be out of operation from one day to the next.
It makes more sense to explore the possibilities of hybrid licensing. Many providers, for example Microsoft Azure, enable BYOL: Bring your own license. This means that companies can apply local licenses in the cloud. Usually with a significant cost advantage compared to the pure cloud-based solution. Depending on the scope, the possible savings reach the five-digit range.
Tip: Those who ultimately decide in favor of the fully cloud-based model (pay as you go) can turn licenses that are no longer needed into cash and thus partially refinance the cloud switch. S2 Software buys used licenses at good conditions and handles the entire process in a legally compliant manner.
Option 2: realize a favorable hybrid model with used software
To reduce IT costs, even more sophisticated solutions can be created. For this, we combine used licenses from our portfolio with cloud-based offerings. This often results in the most cost-effective solution.
Option 3: Use local licenses
In principle, companies have the option of continuing to rely on on-premise solutions. This can also make sense given favorable acquisition costs for used software licenses via S2 Software.
What are the advantages of a hybrid cloud?
The decisive advantage of a hybrid cloud is the cost savings. For example, if you purchase used software licenses from us, the costs are reduced by up to 72% compared to purchasing new software.
It is important to match the software architecture to the need. A local license is always the best choice if the employees are mainly stationary. In this case, the program is installed on the computer in the traditional way and forms the basis for work for several years. This solution is significantly more cost-efficient than the expensive cloud subscription. As mentioned, it is sometimes also possible to apply local licenses in the cloud.
Some companies are also skeptical of the cloud-only solution for data protection reasons. With on-premises installations, the IT department is responsible for protecting sensitive content itself, but does not hand it over either.
However, there are also situations in which the cloud solution is advantageous, despite higher costs. This is always the case when employees need to access the software very flexibly, for example from the home office.
Why are hybrid cloud solutions favorable?
Currently, there is an effort on the part of providers to win over their customers for the cloud. This can be an advantage for your company, especially if local licenses are already in place. Many providers offer the exchange of unused licenses for cloud services. This results in advantages for both sides: Your company gets cheap cloud access, but the number of cloud subscribers to the provider increases.
The second significant cost advantage is based on the use of used software licenses. You can obtain these from us in a legally compliant and audit-proof manner.
Important: Software Asset Management against high costs
In connection with the use of software licenses, whether in the cloud or locally, it is important to maintain an overview. Software Asset Management (SAM) checks the current situation in the company and shows potential savings.
Does the hybrid cloud solution make sense for my company?
Cloud solution, hybrid cloud or on-premise? Many companies are faced with this question. It can only ever be answered on a case-by-case basis. We would be happy to support you in finding a cost-effective hybrid cloud solution for your company. Our experts will provide you with the right advice and the used on-premise licenses.
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