Citrix to End Perpetual Licensing Model Effective October 1, 2020

Blog Posts, News | Posted On Aug 10, 2020 | By:

Citrix has announced that as of October 1, 2020, they will be ending the availability of the Digital Workspace perpetual software licenses in favor of a new subscription-based licensing model. Citrix currently offers its cloud services in a subscription model; however, the same model will now be used for Citrix Workspace on-premises solutions. This change will affect IntraSystems’ customers who currently use Citrix Workspace.  Please note that if you wish to continue with your perpetual licensing model, additional licenses need to be purchased prior to October 1, 2020.  As stated below, after October 1, 2020, perpetual licenses will no longer be available.

Below are the changes to the licensing:

The Benefits of a Subscription Service

A subscription-based service has benefits for both clients and vendors, and many Citrix clients have already chosen subscriptions voluntarily. 59% of Citrix total bookings in the Q3, 2019 came in the form of subscriptions, compared with 42% in the prior-year quarter.  The technology industry as a whole has begun a shift away from perpetual license models in favor of the subscription model – largely due to the following factors listed below.

Lower Upfront Cost to Clients

Perpetual software licenses have high upfront costs that can be prohibitive to business owners for several reasons. The initial cost can be a burden in and of itself, especially for expanding businesses. In addition, the investment in a perpetual license can be a compelling reason for companies to maintain stagnant technology. With its new subscription-based model, Citrix will create flexibility for companies who were hesitant to leave behind their current software. Clients will also be free to expand their existing Citrix deployments to meet growing demand without making a long-term commitment. Citrix hopes to retain clients by “making the commitment to exceed your expectations to retain you as a future subscriber.”

Simplified Billing

A perpetual licensing model often means multiple invoices for clients due to maintenance costs and enhancements, whereas subscriptions offer businesses one all-encompassing invoice. This invoice will include software license costs, support services, training resources, and future solution enhancements. Your organization then has more flexibility to make payments on a schedule that aligns with your company’s current accounting practices.

Transitioning to Subscription-Based Citrix Workspace

While you may have to tweak your budget when transitioning to the new subscription-based Citrix Workspace, the functions and benefits of the service will remain unchanged. This transition is simply Citrix’s attempt to offer greater flexibility to its clients.  Speaking about the transition, Citrix COO Mark Schmitz said, “While the trend for subscription-based technology solutions accelerated with cloud services, Citrix recognizes that not every customer is ready to make the move to cloud services. This is why Citrix is introducing its on-premises digital workspace solutions in a subscription licensing model to meet our customers’ needs. Now all on-premises Citrix solutions are offered in a subscription model giving you, our customer, choice of deployment location, and purchasing option.”

An IntraSystems representative  will be contacting our current Citrix customers to review your current licensing model and answer any questions you may have.  In the meantime, please feel free to Contact Us or call us at 781.986.1700.

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