Subscription or one-time licence? Choosing the right software model

When you buy a website, a booking system or e-commerce software, you'll usually be offered two options: use the software on a monthly or yearly subscription, or pay once and have it installed on your own server. Both are the right choice in some situations. Here we explain the differences, the hidden costs and what to look at before you decide.

The two models in brief

With a subscription, the software runs on the provider's servers. You pay monthly or yearly, and servers, backups, security and updates are included. When you stop the subscription, the service ends.

With a one-time licence, you buy the right to use the software once and it is installed on your own server. There is no monthly software fee, but servers, backups and security are your responsibility. Updates and support usually last for a set period.

Work out the total cost

Looking only at the first payment is misleading. Compare the two models over at least three years:

• Subscription: the total of the subscription fees for the period. There should be nothing else to pay; if there is, it should be stated clearly in the quote.
• One-time licence: the licence fee, three years of server costs, any fees to extend updates and support once they expire, and the time of whoever looks after the server.

If you already have a team that manages servers, a licence can work out cheaper after three years. If you don't, a subscription usually stays more predictable once you add the cost of outsourcing server maintenance.

Who is responsible for what?

• Servers and uptime: the provider with a subscription, you with a licence.
• Backups: usually automatic and daily with a subscription; with a licence you need to set them up.
• Security updates: automatic with a subscription; with a licence you need to buy new versions once your update period ends.
• Data: your data is yours in both models. With a subscription, ask in advance how you'll get your data back if the contract ends.

Which one when?

A subscription usually makes more sense if:

• you don't want to deal with servers, updates or backups at all,
• you'd rather protect your cash flow than make a large upfront payment,
• you want to start quickly and upgrade your package as you grow.

A one-time licence stands out if:

• your company policy requires data to stay on your own servers,
• you have an IT team or a server provider you trust,
• you plan to use the software in the same way for many years and don't want monthly payments.

Ask before you decide

• Is the licence perpetual, and how many months of updates and support are included?
• On how many domains or servers can I use it?
• Who installs it, and what are the server requirements?
• What happens if I want to move from a subscription to a licence, or the other way round?

At İvme Yazılım we offer our ready-made software both ways: on our servers with a subscription, or on your server with a one-time payment. If you're not sure which suits you, tell us what you need and we'll work it out together. You can compare packages on our pricing page.