IT basics
Why software became a subscription
Not long ago, you bought a box of software and used it for years. Now almost everything is a monthly subscription.
1 min readExplainer
The short version
Most business software is now rented monthly instead of bought once. Here is what changed, and how to keep subscription costs under control.
What changed
With a perpetual license, you paid once and owned the right to use that version forever. Updates to the next version cost extra, and eventually the software stopped receiving security fixes.
With a subscription, you pay monthly or yearly. You always get the current version, security updates and often cloud services included. Stop paying, and you lose access.
Why vendors moved
Subscriptions give vendors steady income and let them update software continuously. For businesses, they spread cost and keep everyone on supported, up-to-date versions.
Keeping costs under control
- Count licenses against people. Departed staff often keep a license for months.
- Match the plan to the need. Not everyone needs the most expensive tier.
- Know your renewal dates, especially annual commitments that renew automatically.
- Watch for duplicates, such as two tools doing the same job in different departments.
A quick check
Compare the number of paid Microsoft 365 licenses with the number of people who work for you today. The difference is often money you can save next month.
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