What is a perpetual software license?

What is a perpetual software license?

A perpetual software license is a permit to use the software forever without recurring renewal fees. In most instances, a perpetual license doesn’t have periodic payments unless you want to upgrade it or access support and maintenance services.

Once you acquire the license, you can use the software for as long as you wish. So, do you need software asset management tools when you have a perpetual license? Yes, you do!

A software asset management tool does more than just remind you when to renew your software licenses. It ensures that you only pay for the applications you need, continue to use your IT resources effectively and remain compliant with software license agreements.

Perpetual software licenses: explained

A perpetual software license refers to a model of software licensing that allows users to pay a one-time subscription fee to use that specific version of the software indefinitely.

Characteristics of a perpetual software license

• One-time acquisition fee
• Perpetual use
• Software version restrictions
• Optional support and maintenance services

This type of license doesn’t expire. It works the same way as buying a physical product like a washing machine. You pay for the item once and it becomes yours, so you’ll have full access to the software for the foreseeable future.

However, you might be required to pay for things like maintenance and updates, or if you want to upgrade the software to a newer version. Additionally, the perpetual license agreement stipulates how you can use the software, including limitations on copying, redistributing or altering the code of the software.  

These restrictions are important for safeguarding intellectual property rights and preventing misuse of the software.

What’s the importance of a perpetual software license?

If you’re aware of what happens when a software license expires, you’ll appreciate the importance of having a perpetual software permit. It’ll avoid legal problems that are likely to arise from using software with an expired license. Furthermore, you don’t have to worry about forgetting to renew your license or investing in expensive asset reliability software to help you monitor your software licenses and their lifecycles.

Nevertheless, you still need to incorporate a software asset management system into your organization because it’ll help you streamline the utilization of your IT resources and minimize the cost of operations. A perpetual software license comes with many benefits for both the software developer and users. Here are the main advantages of having this license.

For the software developer or vendor

Upfront revenue

A perpetual software permit guarantees the developer or vendor a stable revenue stream because users pay upfront. This creates a sense of revenue stability and certainty. With a subscription license, you can’t predict how many users will renew their licenses after expiry.

Chances to upsell

This license allows you to generate extra revenue through other services and products related to the software like updates, upgrades, support and maintenance.

Competitive edge

Many software users want to pay for programs once and don’t have to worry about renewals. This gives you a competitive edge over other vendors who offer subscription licenses.

For software users

Cost effectiveness and predictability

A perpetual software license gives you financial freedom by allowing you to continue using the program for many years without worrying about renewal fees. Furthermore, you won’t be bothered about future price changes because you pay once.

Sense of ownership

Although you don’t own the intellectual property rights of the software, a perpetual license gives you a sense of ownership because you’ll always have full access.

Let Flexera take the lead

Unlike a subscription software license that requires periodic payments, a perpetual software license saves you the hassle of managing monthly or annual renewals. If you need an asset management tool to help you manage your perpetual and subscription software licenses, try Flexera today!