Perpetual License vs Subscription
- Magnum Computerware
- Mar 10, 2022
- 1 min read
The main difference between a subscription license and a perpetual license for SaaS businesses is the relationship between the fee that customers pay to software companies and the access they gain to the product.
With a SaaS subscription, customers pay a recurring subscription fee in order to access the product based on their subscription term. Customers lose access to the product if they stop paying the subscription and are paying for ongoing support and software updates.
With a perpetual license, customers can hold the license and access the product indefinitely. However, they will not have access to ongoing product updates or technical support after a certain time - usually beyond a year of purchasing the perpetual license.
Difference Between Perpetual-license (Office 2021) vs Subscription (Microsoft365)
Perpetual licensing's biggest advantage over subscriptions is cost, but that advantage relies on the customer upgrading relatively infrequently. By offering an upgrade every three years and limiting support to five years, Microsoft has forced customers who want or need perpetual licensing to deploy every version.
Office 2021 is sold as a one-time purchase, which means you pay a single, up-front cost to get Office apps for one computer. One-time purchases are available for both PCs and Macs. However, there are no upgrade options, which means if you plan to upgrade to the next major release, you'll have to buy it at full price.
Microsoft 365 is a subscription service that makes sure you always have the most up-to-date modern productivity tools from Microsoft. There are Microsoft 365 plans for home and personal use, as well as for small and midsized businesses, large enterprises, schools, and non-profits.
To learn more about M365, visit https://www.magnumcomputerware.com/office-365
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