Another day, another prediction from uber-research firm Gartner that software licensing costs will fall significantly over the next decade. The study cites seven reasons; one is software and applications delivered via a web browser through the Internet. Such services are usually priced on a subscription basis-either monthly or annually. This is definitely a trend to watch as it will save you money and overcome disadvantages of traditional

Software by subscription has been called by various names, such as ASP (Application Service Provider) and SaaS (Software as a Service), but are defined by provisioning through a network (such as the Internet) and usually on a subscription basis (monthly or annual). The advantages are:

• the software is dynamic – constantly improving and changing without having to wait for a shrink-wrapped release and launch party. No need to wait 18-36 months for a box with new features and updates, they become available when the developer has them tested and ready.
• No deployment to desktops and laptops.
• It is available anywhere there is a web browser rather than trapped on the office desktop or the laptop you left in the hotel room.
• Sometimes subscription fees can be tax deductible if deemed an operating cost (insert standard disclaimer about talking to your accountant or tax lawyer).

What are the downsides? The Internet connection become even more important, although the new Firefox 3 browser and Google Gears are developing ways to work offline. Web interfaces have made tremendous strides in the past year, but still have a ways to go before the match their desktop brethren. Finally, let the bean counters look at the long term costs and whether it makes sense compared to traditional upfront licensing fees (don’t forget the service agreement at 20% annually)!