Financial Comparison between Licensing Options

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Financial Comparison between Licensing Options

Financial Comparison

The following table compares technical aspects of the licensing options.

Full Product - Perpetual License

Subscription - Temporary License

The first investment is very high, as it includes the license cost for the product lifetime.

The first investment is the smallest (it includes a small setup fee, and the first subscription period).

One-time payment.

Recurring payments.

You can use the software as long as you wish. It will run forever on the designed hardware (computer) and operating systems.

You can use the software for the subscription time only, then renewal is required to continue. If you stop paying, you'll lose the right to use the software.

Only maintenance updates are included free for the lifetime of the purchased major version. Major versions updates are not free.

All updates are included for free, including new major software versions. In fact, updating to the last release available is a must.

It´s not possible to anticipate the total cost to keep the software up-to-date for some years.

You know exactly what you can expect to pay each year to keep the software always updated.

Changing the operating system (with the new ones) or hardware (computer) may require a charged update version.

When the software is updated because of the new operating systems or hardware (computers) innovations, the update version is free for this licensing mode.

The right choice when a fix budget is required (one off payment rather than a subscription), and long term cost associated with a product must be avoid. This criterion assumes that the software can work on the same equipment forever.

If the cost is evaluated with the consideration that it is more productive to use the most updated version as soon as it is available, not only the first investment is much lower; but the long-term cost will be probably lower too. Certainly, it depends on the frequency of major version releases.

The customer purchases the software from the capital budget. In addition, some tax benefits can be affected.

The customer purchases the software from the operating budget.

Standard support is available when you purchased a software product and software update. This is valid only for the last updated version. *

Standard support is available when you purchase or renew a software subscription. *

Premium support is available at any time. Valid only for the updated version. *

Premium support is available at any time. *

Incident Technical Support (ITS) is available at any time. Valid only for the updated version. *

Incident Technical Support (ITS) is available at any time. *

Standard support is included free for one year when you purchased the full product (not valid on updates).

 

Note *

Ask about the technical support plans

Note *

Ask about the technical support plans