With subscription licensing of your software, you pay a fixed amount per month to use the software. This offers some significant advantages over the traditional model where you buy the software licenses.
1. No major investment required
Many businesses (and individuals) balk at the cost of software. In addition to licenses, depending on what software you need, there may be costs for hardware, infrastructure, maintenance, training, support and implementation. And then there's the time and energy you have to put into implementation yourself. Making a large investment up front, without immediate value, is not pleasant. Even though in the long run the software is going to save you time and costs and make you more successful and decisive. You can greatly reduce the initial investment by choosing subscription licensing.
2. Greater flexibility
You don't know what the world will be like in 10 years. Or 5 years from now. Or maybe it's even unclear what your business will be like in 1 year. How will the economy evolve? What new needs will arise among your customers? How will technology develop? To what extent will you succeed in achieving your company's ambitions? Just a few questions that are difficult to answer. Or consider the impact of COVID-19. This uncertainty calls for flexibility. And with subscription licensing, you are flexible. You can adjust the number of users up or down each month and add or remove modules each month. You don't have to write off the software licenses over X number of years or enter into a contract for a long period of time.
3. Predictable and stable costs
Traditionally, when you plot the cost of enterprise software in a chart over several years, you see big peaks and valleys. High costs at the beginning, paying for maintenance and support every year in advance, and the occasional costly upgrade. With subscription licensing, costs become predictable and stable. The subscription fee can include several components, such as licenses, maintenance, (technical) support, bug fixing, updates and upgrades. So you know where you stand in terms of costs. And that makes it a lot easier to make other decisions and implement policy plans.
"With subscription licensing, you avoid the large investment, know exactly where you stand in terms of costs, and are flexible and scalable when the situation calls for it."
Actually, it makes perfect sense. Your wishes regarding software change over time. Consider, for example:
- Other functional requirements and wishes
- New technological opportunities
- More or fewer users
You don't want to make a large investment in advance, without knowing what the future holds, do you? With subscription licensing, you avoid the large investment, know exactly where you stand in terms of costs, and are flexible and scalable when the situation calls for it.
