In recent years, small businesses have seen a major shift in the way software is sold. Once, it was common to pay a one-off price for perpetual software — a license you could use forever. Today, however, most software vendors are moving toward a monthly or yearly subscription model.
So why is this happening? And what should your business do?
Why Vendors Are Moving to Subscription Models
The main reason software companies are pushing subscriptions is cost and support.
- Supporting old versions of software — fixing bugs, ensuring compatibility with new operating systems, and providing help desk support — is expensive.
- Subscription software allows vendors to keep everyone on the same, latest version, greatly reducing their support costs.
- Financially, it’s also more profitable for vendors. A steady stream of subscription income is more predictable and often more lucrative than one-off perpetual sales. In fact, in many cases, the annual subscription cost is almost as much as buying a perpetual license once.
Benefits of Subscription Software
For small businesses, there are real advantages to moving to subscription-based software:
- Built-in Support: Subscriptions usually include technical support, making it easier to get help when you need it.
- Always Up to Date: You automatically get the latest features, security patches, and performance improvements.
- Greater Reliability: Because everyone is using the latest version, the software tends to be more stable and compatible with modern systems.
- Easier License Management: Subscriptions are typically tied to your account or business email, making it much easier to assign, reassign, or transfer licenses between employees and devices.
Downsides to Consider
That said, subscription software isn’t perfect:
- Change Isn’t Always Better: New updates sometimes move menus or change interfaces, requiring staff to re-learn navigation and slowing down productivity.
- Ongoing Cost: Unlike a perpetual license, you have to keep paying for as long as you need the software.
On the other hand, perpetual software also has disadvantages:
- License Key Issues: It’s easy to misplace license keys, and recovering them can be difficult.
- Transfer Problems: Moving perpetual software between computers or employees can be complicated and, in some cases, not even allowed under the licensing terms.
Our Recommendation
At Excelero IT , we recommend adopting subscription-based software for most small businesses.
The key reasons are:
- Easier license management
- Better vendor support
- Greater security and reliability through regular updates
While the ongoing cost needs to be budgeted for, the benefits in support, flexibility, and system stability make subscription software the better choice for modern business operations.
If you need help reviewing your current software licensing or planning a move to subscription models, we’re here to assist.