Advising on the commercial impact of technology and
    market changes in telecoms, software and IT services

This report describes the users' perceptions on three related issues:

• software licensing

• purchasing software as a service

• the role of open source in software provision.

Ovum examines how different licensing models match up to business needs, and how the choice of model affects the administrative burden on the organisation. We look at the value that organisations attach to keeping their software up-to-date and the framework they would like to have to enable this to happen. The report looks at how quickly new, service-based, models of delivery are being adopted. It also discusses the attractions that open source offers users, and reports on what are the primary drivers behind the open source movement.

Key Issues

• Are vendors providing the correct forms of software licensing to address the business requirements of their customers

• Should vendors get into a more collaborative relationship, for example taking rental payments based on business volumes

• Is Open Source a distraction or the essential basis for more cost-effective IT?

• Are users ready for a major shift in their attitude to software provision, for example to make large scale use of managed services for their IT needs?