Capterra Glossary
Perpetual Software License
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.
What Small and Midsize Businesses Need to Know About Perpetual Software License
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.
Related Terms
- Synchronous
- Software as a Service (SaaS)
- Intranet
- Security Orchestration, Automation and Response (SOAR)
- Identity and Access Management (IAM)
- Managed Service Provider (MSP)
- Haptics
- WAN (Wide-Area Network)
- Service-oriented Architecture (SOA)
- Augmented Reality (AR)
- Chief Information Officer (CIO)
- Security Information and Event Management (SIEM)
- Platform as a Service (PaaS)
- Service-Level Agreement (SLA)
- Scalability
- Data Center
- Authorization
- Multitenancy