There’s been an ongoing debate: Perpetual Licensing vs. Software Subscription. If you’re struggling to decide whether one is better than the other, here we’ll help you clear your doubts.
In order to decide which path to take, first we need to know what differentiates one from another.
The main difference between these two is the pricing pace. A perpetual software license is paid up-front in one sum, with a yearly maintenance fee that covers support and upgrades. On the other hand, Software Subscriptions are priced on a monthly, or sometimes a yearly basis. It’s an ongoing subscription that covers maintenance, upgrades, and technical support.
However, this is not the only difference between them, so, let’s get into a more detailed comparison.
Subscription model
Parting from the core difference mentioned above, with the Subscription model customers pay a recurring fee to have access to the software, ongoing support, and updates. It also opens access to the paid product for more users. Nevertheless, if the user stops paying the subscription fee, their software access is cut off.
In summary, the customer is paying for a constantly updated, innovative product. Take into consideration the amount of time you’ll be needing the Subscription, the longer you pay for it, the higher this cost will amount to.
Perpetual License model
We can consider this model a veteran, since it started in the early days of software. Back then, companies couldn’t handle the costs a Subscription brought, so Perpetual Licenses were the way to go.
Perpetual licensing allows the customer to have indefinite access to the software. If you fail to renew your licensing support contract, you’ll still be able to use the product, since you made an up-front full payment for it.
If we’re talking long-term usage, the cost of Perpetual Licenses is less than paying for a Subscription for the same amount of time.
Now let’s talk about updates and support. Under a Perpetual License contract, you’ll get periodic updates, which means you might have to wait longer to get the latest version of your product.
IT infrastructure, maintenance and admin staff are not part of the up-front payment of the software, these are paid yearly under a ‘’maintenance fee’’.
Having talked about the differences between them, and the benefits each model has, if you’re still questioning which one’s better, here’s why: The truth is there is no right or wrong answer.
While Subscriptions have taken over the market in the past year, some organizations are still opting for Perpetual Licenses. This is because this decision should be based on your company needs.
Subscriptions have a lower initial price, but its cost is higher over time and the service is cut off if you stop paying. Whereas Perpetual Licenses have a higher up-front cost, that results beneficial over time, and your software usage never expires.
There’s no difference in the functionality of the product, no matter which model you choose. Knowing this, understanding your organization’s needs and where it stands, we’re sure you’ll be able to make the right choice.
Regardless which path you decide to take, we’re here to help you reduce your licensing complexity. Buy smart today with Venti Exchange, contact us.
