28. Januar 2022

Hybrid licences: often the best solution

Quelle: Shutterstock – Nr.: 1834148971

The Cloud is efficient, uncomplicated and cost-effective. This assessment is not always correct. It often makes more sense to combine Cloud and on-premises solutions. This results in so-called hybrid licences.

What is a hybrid Cloud?

Anyone looking at optimising the cost of software licences will sooner or later come across the term ‘hybrid Cloud’. What exactly does it mean?

IT experts always speak of a hybrid Cloud when more than one solution is used – one of which must be Cloud-based. The following come into consideration:

Public Cloud: companies use the provider's online network, local administration is completely eliminated.

Private Cloud: provision via an internal network or the internet where access is not public. The private Cloud offers more control.

On-premises: the software is used on local workstations with permanently installed software. IT administration is necessary, data remain within the company.

Cloud and on-premises – a contradiction?

The Cloud is often seen as a replacement for the local licence. In fact, many companies are abandoning their local applications and moving entirely to the Cloud. Why would anyone want to hold on to on-premises software? There are a number of scenarios for this.

Option 1: using existing licences

Companies usually have a well-developed IT system. This includes licences for programs such as Office or Windows. Depending on the model, such software licences are still valid for years. When switching to the Cloud, these investments would be lost as the locally used software would be out of order from one day to the next.

It makes more sense to explore the possibilities of hybrid licensing. Many providers, for instance Microsoft Azure, allow BYOL: bring your own licence. This means that companies can use local licences in the Cloud, usually with a significant cost advantage compared to a pure Cloud-based solution. Depending on the scope, the potential savings can reach the five-figure range.

Tip: If you ultimately decide on the fully Cloud-based model (pay as you go), you can turn unneeded licences into money and thus partially refinance the Cloud switch. s2-Software buys used licences at good rates and conducts the entire process in a legally compliant manner.

Option 2: implementing a cost-effective hybrid model with used software

Even more ingenious solutions can be created to reduce IT costs. To do this, we combine used licences from our portfolio with Cloud-based offers. This often results in the most cost-efficient solution.

Option 3: using local licences

In principle, companies have the option of continuing to rely on on-premises solutions. This can also make sense in view of the low acquisition costs for used software licences via s2-Software.

What are the advantages of a hybrid Cloud?

The key advantage of a hybrid Cloud is the cost savings. For example, if you purchase used software licences from us, the costs are up to 72% lower than for new licences.

It is important to tailor the software architecture to your needs. A local licence is always a good idea if employees work mainly in-house. In this case, the programme is installed on the computer in the traditional way and is the working basis for several years. This solution is significantly more cost-efficient than the expensive Cloud subscription. As mentioned, it is sometimes also possible to implement local licences in the Cloud.

Some companies are also sceptical about the pure Cloud solution for data protection reasons. With local installations, the IT department itself is responsible for protecting sensitive content, but does not hand it over.

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 their home office.

Why are hybrid Cloud solutions cost-effective?

Currently, providers are trying to win over their customers for the Cloud. This can be particularly advantageous for your company if local licences already exist. Many providers offer to exchange unused licences for Cloud services. This results in advantages for both sides: your company receives low-cost Cloud access, while the number of Cloud subscribers at the provider increases.

The second major cost advantage comes from the use of pre-owned software licences. You can obtain these from us in a legally compliant and audit-proof manner.

Important: Software Asset Management against high costs

It is important to keep track of how software licences are used, whether in the Cloud or locally. The Software Asset Management (SAM) checks the current situation in the company and identifies potential savings.

Is a hybrid Cloud solution right for my company?
Cloud solution, hybrid Cloud or on-premises? Many companies are faced with this question. It can only be answered individually. We would be happy to help you find a cost-effective hybrid Cloud solution for your company. Our experts will provide you with the appropriate advice and the required on-premises licences.

Direct inquiry