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Capterra Glossary
Perpetual software licenses allow program users to utilize a specific version of a software solution continuously over time by paying a one-time fee. Software vendors that offer perpetual licenses typically provide their software buyers with a limited window of time to seek technical support. Often, buyers that purchase perpetual licenses must pay a fee if they wish to update their software solution. When compared to subscription-based licenses, perpetual software licensing options seem to be losing their popularity due to its higher initial cost.
Companies that offer Software-as-a-Service typically use two different licensing models: perpetual software licensing and subscription-based licensing. Perpetual licenses are ideal for small to midsize companies that conduct highly repetitive tasks on a daily basis using a certain type of software. Although the upfront costs of a perpetual license is often quite steep, once it is paid for, organizations own the rights to the software they purchase. This saves companies a significant amount of money in the long run when compared to subscription-based licenses. However, if your team is unsure if they will use a specific software for years to come, they are better off choosing a subscription-based license since they can be easily canceled and swapped out for a different solution.