Types of Software Licensing Models FAQ

What is the Difference between a Perpetual License Model vs SaaS Model?

A perpetual license model differs from a SaaS Model in the matter of ownership, time of use, and cost-effectiveness within a specific minor frame of 3-4 years. Some of the negative aspects of a perpetual model are that it may cost more upfront, updates may cause business disruptions or downtime, and there is a continuous need for hardware and software updates.  

A SaaS model may cost less upfront, have less overall downtime, and not need any additional hardware or software resources. In addition, a company may expect less support, higher costs of ownership after a specific period, and has no control if their service goes down.

Saas Models

What is the Difference between a Perpetual Software License Model and a Subscription License Model?

A perpetual software license model is paid in one large upfront sum at the beginning of the term,  as well as potential monthly or annual maintenance costs, while a subscription license is priced on a monthly or annual subscription period. The major differences are not only cost, but when the payments are due.

See also Subscription Licensing