ITunes: from desktop software to SaaS subscription
Today’s WSJ asserts that Apple is considering migrating its iTunes property to the cloud – i.e., shifting from a desktop-based software version to a SaaS-based model via its Lala acquisition. As the article points out this makes sense on several fronts and perspectives (Apple and its customers):
§ iTunes’ customers can access their purchases from anywhere, as long as they are connected to the Internet
§ Gives Apple the ability to sell music through search engines and other Web sites
§ Broadens Apple’s reach beyond people who come to its virtual store
§ Wouldn’t require customers to download Apple’s software or their purchases, alleviating the need for customers to manage media across a range of devices (desktop, iphone, ipod, etc…)
A bold, strategic move
What’s perhaps most impressive about this move is that Apple is pursing it despite its current market dominance. Certainly it’s feeling a bit of pressure from “competing services that allow users to listen to “streaming” music either cheaply or free on computers or portable, Internet-connected devices.” But it certainly doesn’t need to make such a move at this time.
From Homeownership to Rent
I’ve discussed the need to evaluate the ‘ownership vs. rent’ issue before in the context of IT assets. The WSJ article highlights a similar industry phenomenon: “the proposed changes would represent a fundamental redefinition of what it means to own a song, movie or other piece of media — shifting the emphasis from possession of a physical disc or digital file to the right to access content.” Substitute “IT asset” for “media” and the similarities are striking.
Posted By : Ray Bordogna
Tags: LiquidHub