by Daniel Ruiz
Senior Solutions Architect
Beginning October 1st, 2020, Citrix will be moving to a Subscription Licensing based model for On-Premises Citrix virtual Apps and Desktops (formerly known as XenApp & XenDesktop). Perpetual licensing will no longer be available for purchase after that date.
Citrix is focusing to turn from a perpetual revenue into a subscription revenue model, considering all the restructuring and divestment of product lines. As a Citrix Customer, this means that by the end of 2020, a current or future customer will no longer be able to purchase perpetual CVAD/XA/XD licenses. The company suggests to purchase any perpetual licenses now before the end of the year.
**Customers will be able to maintain the current perpetual licenses, however new licenses purchased will be subscription based purchased through Citrix Cloud licenses.
According to Citrix, this change will simplify procurement, ease deployment, accelerate adoption of cloud services, and strengthen customer relationships. Benefits of this change are listed below.
Lower Upfront Cost of Entry
Transitioning users into subscribers — rather than forcing them to be owners of their technology solutions; gives a flexibility to expand existing Citrix deployments to meet growing demand without a long-term commitment or large upfront cost. As a subscriber, the investment is short-term investment addressing the pressing business challenge. Citrix is making the commitment to exceed the expectations of their customers to retain them as a future subscriber.
On-premises subscription can provide customers with financial flexibility as licenses may qualify for either operating (OpEx) or capital (CapEx) budgets based on the customer’s accounting policies and procedures.
Subscriptions offer businesses a single invoice that is all encompassing — including software license costs, support services, training resources, and future solution enhancements. Customers then have the option to make payments on a regular schedule that aligns with their organizations’ accounting practices.
In a perpetual licensing model, there is a larger upfront payment for entry. After the perpetual license is “owned,” there is an on-going maintenance cost for enhancements, training and support. This variation in cost structure can be cumbersome to manage and it makes establishing a budget problematic as the business grows. With subscriptions, the upfront cost can be smaller and there is one simple, predictable cost that remains relatively consistent year after year.
If you have regarding this new subscription option and how it may impact your firm or need additional assistance, do not hesitate to contact our professionals at firstname.lastname@example.org.