The notion is that if you want to license capacity, that capacity is no longer tied to a piece of hardware -- that capacity doesn't have to be re-purchased after three years just because you are extending the software license. So as you are refreshing your hardware, for better rack efficiency, power utilization, etc, you can just re-apply that to the existing capacity that you have already purchase. It is kind of like software-defined purchasing if you will. It's a more predictable way to account.
New model is better aligned with how companies want to buy software, the company claims.