PERPETUAL LICENSE vs SUBSCRIPTION LICENSE ?
This type requires a fee to be paid over a set period. The duration can vary from a week to a year & expires once that time has run & typically the software won’t work anymore unless renewed. I’ve never been comfortable on this form of license, as you effectively just rent it & never own it. RANSOMWARE is a phrase I’ve seen, harsh but fitting at the same time.
This type is a non-expiring license, the customer has no obligation to pay for support or update services & can use the software forever. The software cost is initially greater than subscription-based licenses & was the traditional/classic way you purchased software prior to subscription-based licenses.
NB: Adding teasers (software extras) for one form over the other, subscription in this example is just in poor taste & not PC in a companies standing.
Both have Po’s & Con’s & I can see the subscription-based licenses are now within the grasp of small businesses or individuals where the initial outlay for high end expensive software on a perpetual license may not have been in reach. However, that’s only the case where fees of this type of plan would be very low & at least taking 5 years+ in total fees for the equivalent outright purchase & actual ownership. Shorter terms would be money down the drain & wouldn’t make sense in my opinion.
If may be more PC for companies to offer outright ownership (PERPETUAL LICENSE) after the subscription term has run that adds up to the product value. This direction would recognise loyal users who are likely to stay onboard for the duration.
Under the traditional license route, the purchase price is clearly understood & an indicator of its value. However, under the subscription-based direction, the value of the product isn’t always clear if this is the only form of licence.
Its natural for anyone to put a value on a product even if not advertised. We can all judge were a particular product ranks in value & therefore as time goes by under the subscription-based licence, technically at some point the product would have been paid for in full & then some after this point.
A perpetual long-term payment plan (interest fee) is another thought. Say spread the costs over 12 months, that would resolve the above two plans & be more inclusive to smaller practices & individuals & instil a loyal user base.