What is a Perpetual License?

A perpetual license is one where a software application is sold on a one-time basis and the licensee can then use a copy of the software forever. A perpetual license model offers a customer access to a software application in perpetuity, hence the name. The license holder has indefinite access to a specific version of a software program by paying for it only once.

What is a SaaS License?

SaaS licensing is a system of providing software to clients in exchange for a monthly or yesrly fee. The SaaS (Software as a Service) licensing model resembles paying rent – companies can use software long-term as long as they continue to make their monthly payments.

<aside> 💡 More detailed information about the differences between these licenses can be found here.

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SaaS (or subscription in this image) licenses have no hidden costs. What you see it what you get, hence why it is visible above the water. Perpetual licenses on the other hand are much more expensive. This has to do with the fact that the customer is responsible maintaining hardware, keeping software up to date and to invest in their own IT environment.