Good reasons for subscription-based licenses

CEO Oliver Breidenbach talks about the pros and cons of subscription based software models.

Boinx Software offers software under a subscription-based payment model. This type of license has many benefits for customers which we like to explain in this article.

The relationship between software companies and customers has changed over the last decades. Digital transformation has transformed relationships into partnerships. Our software applications have never been static products since there are changes and improvements continuously. Compatibility to new hardware and new feature updates are getting released regularly.

Are you confused when it comes to software licensing? There are two common models: perpetual license and subscription license. Find out everything you need to know about the differences and pros and cons of the two license models.

Perpetual license meaning

So, what is a perpetual license? Essentially, a perpetual license is a term used to describe the traditional method of purchasing software – you pay for the license upfront, and you have the right to use the software indefinitely. Depending on the specifics of the perpetual license agreement, you may also be entitled to download updates to the software and receive technical support, although often this is only provided for a set period, after which you’ll have to pay. Perpetual licenses are best if you are not going to change the system after installation at all. For computers connected to the internet, we can not recommend this practice for security reasons. 

Generally speaking, perpetual licenses are a large, one-time investment. However, it’s important to remember that with perpetual licenses, you will carry most of the financial risk and you’ll be responsible for getting updates and paid upgrades. 

Perpetual license vs. subscription license

While perpetual licenses used to be the only common type of software licensing model in the past, the move towards SaaS solutions and cloud-based software has made subscription-based licenses much more common. In short, a subscription license relates to a licensing model wherein users pay for the time of usage. Mostly starting with a monthly subscription fee to use the software. The fee includes technical support services and software updates, upgrades and gives you the option to scale the service up or down, depending on your requirements. 

Because updates and upgrades are included, most subscribers run the latest versions available. This software license gives you always access to the latest technology.

What is the best?

When it comes to perpetual licenses vs. subscription licenses – or even perpetual licenses vs. SaaS more generally – subscription licenses have numerous benefits. Payments are spread evenly across your usage of the service. In addition, the vendor is responsible for all updates and software maintenance. As long as you are following updates for macOS, you will have the best user experience including the latest technology.

A con is that you do not own the software, you only have the right to use it. But with a closer look, this con is only relevant if the software keeps its value for you. Perpetual licenses don’t include free upgrades automatically. The risk of losing the value is on the consumer site.
Imagine – you are not upgrading your system to newer macOS simply because the perpetual licenses of a certain software don’t include the next big upgrade. You will end up with a perpetual license that you own, but you can not run it on newer macOS systems or don’t have the hardware available any longer. You own a license but the license has no value anymore to you. Think of the old Mac OS 9, PowerPC Macs, and even today the ending of the Intel Mac era.

About FotoMagico

FotoMagico is a slideshow editor for Apple Macintosh and Apple iPad, developed by Boinx Software International GmbH. The software has been rewarded with several Apple Design Awards. Boinx Software has released FotoMagico 6, the latest version of their top-drawer slideshow authoring software.
The bundle includes applications for both the Mac and the iPad, plus tons of extras including templates and royalty-free music tracks.

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