Subscription Vs. Perpetual Licensing

Should you make the switch from perpetual to subscription-based software licensing?

A simple decision like that could turn your business around, so let’s analyze the pros and cons of this two different pricing strategies.

Perpetual licensing

This system is all there have been for many years, the customer has to pay upfront for the usage license and eventually pay a recurring fee for maintenance services that take care of fixing bugs and to run occasional upgrades.

Many companies have had lots of success with this conventional model where software is treated pretty much like a physical good, something you buy, own, and occasionally pay to fix it. Perhaps also because, up until not long ago, software was sold on a CDs in very fancy boxes.

With this option the user has higher initial friction because the first investment is higher than a Subscription license but the cost is subsidized over time for the fact that they can use the software for as long as they want, or as long as the software is not obsolete! Software aging is actually a main customer concern, nowadays people are very used to constant free updates, so the lack of such thing can make them feel like they are falling behind.

Subscription licensing

Subscription licensing the another alternative, one that is currently really picking up and has been appreciated by businesses all over the globe in all industries. In this scenario the customer can get the program on their system for free, and then pay on a monthly basis in order to be able to use it.

When costumers have a smaller budget the subscription license is a better choice because the first investment is smaller than that of a Perpetual license and customers know exactly how much they’ll spend each year. Customers also do not need to worry about software updates because they would be included over time. Basically for an annual fee they would be all set.

Subscription based software licensing is taking over the market because of it’s low friction entry point for the consumer and the steady, more predictable income for the programming company. Something to consider though is that people are starting to have so many subscription on their credit cards that could become hesitant in front of another subscription.

Say Ciao

Team About

What we do Services

Our favorites Projects

Get in touch Contact

Ignazio Lacitignola

Founder & Designer

on repeat

Ignazio Lacitignola

Founder & Designer

Meet Ignazio, affectionately known as “Igi” to friends and colleagues. An Italian designer, creative and entrepreneur who finds it a bit peculiar to refer to himself in the third person, but he’s willing to do so for the sake of this bio.

From his earliest memories, Ignazio’s mind has been a canvas of creativity, and his love for digital design ignited as soon as he could afford a computer and an internet connection that wasn’t the sluggish 56k dial-up.

Growing up in the less glamorous corners of Milan, Italy, Ignazio defied the odds, earning honors at Nuova Accademia di Belle Arti without ever brushing shoulders with the law.

Following his heart’s call, he ventured across the Atlantic to San Francisco, USA, to immerse himself in the startup and User Experience world. It was here that he kickstarted his journey with Meno Design, a digital design studio dedicated to distilling complex digital experiences into their essence, while learning through experimentation.

In Ignazio’s eyes, every piece of design is a potential masterpiece, an artistic expression in its own right. His ongoing challenge is harmonizing his meticulous attention to detail, sometimes bordering on OCD, with the practical timely demands.

Beneath his approachable and calm exterior lies a delight of colorful Italian cursing that surface whenever he stumbles upon poor design choices—though it’s worth noting that he’s incredibly friendly, and a simple “ciao” is always welcomed.