Redgate Joins the Stream of Software Vendors Moving to a Subscription Model

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Redgate Software, the leading Database DevOps solutions provider, today announced that it is joining other enterprise software vendors such as Microsoft, Sage, and Adobe in moving to a subscription model. From January 2022, the majority of its product portfolio will be offered on a subscription basis, rather than solely under a perpetual license agreement.

Redgate already offers subscription-based products such as Flyway, Redgate Deploy and Data Masker, and more recently has trialled subscription offerings for its popular SQL Prompt and SQL Monitor products, which have been widely welcomed by new and existing customers.

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Upgrading to a subscription reduces upfront costs, provides instant access to the latest features and security upgrades, and gives customers a more transparent all-inclusive price with included support. This pricing approach is the same for the sales of enterprise solutions or the sales of DBAs and development tools, bringing consistency to the pricing conditions as well as to the annual subscriptions.

Importantly, this also aligns with the substantial shift in how businesses and organizations consume software, which was highlighted in IDC’s latest Global Software Business Model Forecast, 2021-2025.

This shows that the number of organizations moving to a subscription model has increased significantly in 2020, and IDC predicts that subscriptions will account for 83% of total software revenue by 2025, and almost all organizations will move to the subscription model. the future.

For many companies and organizations, the primary driver will be moving costs from capital expenditures (CapEx) off the balance sheet to lower, more manageable and predictable operating expenditures (OpEx). For others, it will be stable medium to long-term budgets without large unexpected cash calls.

Tom Austin, director of customer success at Redgate, also sees simplicity as key. “By default, simplicity is part of the subscription contract model. There is an annual subscription that is easy to plan and budget and increase or decrease the number of licenses used. Our customers can equate this directly to the value they get from the software. This forces us to ensure that the software stays up to date with the changing technology and security environment, and truly delivers the benefits that customers expect.

Redgate has already announced the switch to the subscription model first to its existing customers and is working with them to switch to the model in the easiest way possible. For organizations with established internal processes tied to CapEx budgets, perpetual licenses are still offered.

As Tom Austin concludes, “The move to a subscription-driven model is, in many ways, a natural evolution for Redgate as a software company. We have discovered that the majority of IT decision makers prefer it and for those who are not yet able to make the switch, most products will still be available under a perpetual license.

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