Lawo Flex Subscription model
Category Production
Lawo Flex is the name given to Lawo’s combined offering of both subscriptions to credits and the purchase of perpetual licenses. Flex Subscription credits are not just a different way to pay for our solutions: they also change how they can be used.
Flex Subscriptions can have distinct benefits in some circumstances. In other situations, perpetual licenses will be the better option. Although it is possible to take out 100% perpetual licenses—or 100% subscription licenses—the most powerful and beneficial way forward is to utilize a combination of both in order to optimize operational and financial flexibility.
Some core benefits are:
• Operational Agility
Lawo Flex brings agility in terms of how a business addresses changing needs. With all-perpetual models, you must commit to a certain workflow and a capacity that remains fixed for several years. Being able to add Subscription Credits for short periods to a baseline of perpetual licenses reduces underutilization of both hardware and oversized software licenses. Users no longer need to buy for their peak usage, but can add more capacity when needed, e.g. for major events or unexpected requirements.
Furthermore, Flex credits can be moved between different HOME systems via a cloud portal. This gives unprecedented control over centralized pools of licenses for larger organizations, or better utilization of licenses for distributed needs, such as OB trucks or live events.
• Functional Independence
A perpetual license applies to a specific product or function. Subscription licensing breaks the link between licensing and function—a Flex Subscription license can be used for anything that can be licensed through HOME, and this can change dynamically—among HOME Apps, .edge gateways and HOME’s NMOS functionality. Imagine being able to change what you have bought as often as you need…
• Future-proofing for better ROI
With a perpetual license, if things change, there can be costs associated to upgrade or add more technology in the future. This could be major, or it could be, for example, to support a new stream or compression format. In either case, it results in a higher cost, and often owned equipment running idle or being underutilized.
Not only do Flex Subscription credits allow for changing usage, they also provide access to future Lawo developments. When a new product, e.g. a HOME App, is released, or support for a new format becomes available, Flex subscribers can access this immediately.
How do credits work?
Alongside permanent licenses in a HOME system, users can have a pool of credits available as a subscription. These credits, which do not burn down (see below), can last a month, a year or multiple years.
When you start a HOME App, for example, you see how many perpetual licenses and credits are available in your wallet and choose what to use. If you select to use credits, it will take the required number from the HOME system wallet. The amount usually depends on the app configuration or add-on for, e.g., .edge.
Unlike most other SaaS models, when an app or add-on license is stopped, its allocated credits return to the HOME wallet and can be immediately reallocated. This is unusual in the subscription world where almost all other models are “burn down”.
Freed-up credits can be used for the same app in a different configuration, or any other app or licensable function within HOME and .edge. The credits purchased can be allocated to completely different functions dynamically.
As well as breaking the link between license and functionality, Lawo Flex also allows for scale. Many of our customers are used to building and buying for peak demands, but this leads to massive underutilization of resource, both infrastructure and software investment. With Lawo Flex, users can add additional credits as needed, to address major events or unforeseen circumstances. This can be for anything from 1 month to 5 years.
It’s also simple to move credits between different HOME systems. Apps and associated functionality, like inputs and outputs, belong to a centralized pool which can be distributed to a facility, or a truck, exactly when needed. You can move credits from one HOME system to another via the web portal, or if HOME systems are offline, you can use license files.
On top of all this Lawo Flex credits also apply to future licensable functionality, meaning users enjoy immediate access to new functionality and tools. And because Flex Subscription credits are re-usable, this is flexibility with a predictable, fixed cost.
