The dangers of software dependency for creative teams.
This year I had a scare in that a critical piece of creative software that I use daily was suddenly not available. The non-pro version still functioned but the pro features that required a vendor server identification ceased. Thankfully, the software was purchased by a new company that offered a lifetime subscription to the pro version, but for me it highlighted a growing risk of software dependency.
What is the danger?
Software has become critical to all of our lives no matter what walk of life we are engaged in. I have spent decades in the creative software world and have seen giants appear and disappear. Software that we thought we couldn’t live without are suddenly ended. Everything from desktop applications through to infrastructure systems appear to have a life expectancy and yet companies often overlook this risk when choosing their software solutions.
For individuals the risk may appear slight, after all in the creative world Adobe is the dominant environment so aligning with them would be a good start wouldn’t it? Well yes, but Adobe has a track record of buying, stagnating and killing off solutions. Sometimes this is a strategic move to thin out the competition, other times it is to gain technology or programming skills to enhance their established products. The result is the same, a piece of software you once depended on is taken out of the picture.
Then there are the specialist solutions those niche applications or systems that do exactly what you want in a particular field. These are typically well funded start-ups driven by entrepreneurs that innovate and adapt quickly. They spot an opening in the market and write to fit. The danger is that these software tools are so good we incorporate them into our creative workflows. It is entirely likely that a revenue stream can depend on this simple software application and then the money runs out and development ends.
Now in the past this was a nuisance. A company would announce the end of their solution which would often mean no updates and you would have to find an alternative if you wanted new features. The clock started ticking to the next operating system (O.S.) update which might break the application but usually there would be enough time to find an alternative and migrate from one solution to another. Now however there is a new threat in the form of the software subscription service.
With the subscription service software end of life can mean tomorrow and that is a serious risk to many people. This is the threat.
You subscribe to the software solution, let’s say it’s a specialised creative tool. The professional version needs to identify if you are a subscriber so every time you start your application it verifies with the vendors server that you can use it. So, what happens when that company goes out of business? The responsible vendor will keep those servers running till all subscriptions are ended which gives you time to transfer to another solution especially if you are on an annual plan. You are on an annual plan, aren’t you? If not your time frame could be less than a month or merely days. For some vendors in financial difficulties the server may well be switched off with little or no notice.
At the infrastructure end the problem is there too and is very similar. In the past the hardware and software were run and maintained by internal or site-specific IT teams. More commonly these are now Web services controlled and maintained by external teams. When these companies run into difficulties, your business is also at risk. So, what can we do?
What are the signs to watch out for?
Some early indicators that the software you are using might be at risk will include the following.
- Upgrades are well over twelve months apart.
- Updates and bug fixes become less and less frequent.
- Marketing of the product ceases.
- Turnaround of the vendor’s staff increases.
- No development timeline.
- Profits forecasts are poor or unavailable.
- Communication with clients reduces then stops.
Reducing the risk.
Does your business lend itself to Open Source Software? (O.S.S.) Open source software will usually make the source code publicly available and therefore reduce the risk of denied access and lack of future development.
For bespoke infrastructure solutions and/or business critical systems look to establish Intellectual Property (I.P.) rights should the company cease to trade. Some companies will enable this through Key escrow managed through independent third parties. In simple terms this allows your company to take over the software usage and/or development to safeguard your business should the worst happen.
The important thing to do before buying into any central software solution is to have an exit plan in mind. The more critical the solution the more detailed your exit plan needs to be.
If it is a niche software product that does the one vital thing you need to make sure you know the alternatives and probably have a version installed and ready for use.
If the software has a subscription, then sign up for the annual license or longer and monitor the update period. Where possible take the lifetime licensing option but make sure you know what happens to the licensing server if the vendor fails or sells.
Conclusion.
It has often been commented on that the software industry and the drugs industry are the only businesses that refer to their customers as ‘users’.
Increasingly we are more and more dependent on software companies to run our own businesses or generate an income. The shift towards subscription licensing can have unforeseen consequence not least of which is the risk of access denial. There is no easy answer to this new challenge, but it is increasingly important to be aware of how a company is behaving and what that might mean to your bottom line.
Stay vigilant to the early warning signs of a company’s ill health and have a contingency plan ready to implement should you find yourself cut-off from that vital software source.
IF you have questions about this or my other articles please give me a call or send me an email.