A subscription typically means to receive a publication (offline or online) regularly with prior monetary transaction. Subscription Licensing is the process of renting software on a monthly basis over a contract period rather than purchasing the license out rightly. Subscription licensing also enables a user to be entitled to new release of softwares and technical support over the subscription period. Prices to the subscription are often decided on the basis of the length of the subscription and longer subscription often cost the customer less. However subscribing to a software and using it less is not a convenient option for any buyer. There are various providers who offer a subscription based model that reflect on the actual usages.
Requirements for Subscription Licensing
Initially softwares were used and purchased by customers to install more than one copies. It cost the vendors to lose a lot of revenue. But to manage a license was typically complex for all the parties involved. As soon as the subscription model came, the communication for license management and policy enforcement became easier. As the illicit software usages decrease significantly with the licensing, it is always beneficial for a customer to have it. As the subscription license provides lower costs for the customer and higher margins for the vendors, it is a benefit for both the parties involved in the trade. It is also alluring for the enterprises who favor the software use to be tied with actual usages and time value. Subscription Licensing is helpful for those who don’t want to pay the full cost immediately even before the software has proven its usefulness. It leverages the business with time-value of money that allows the businesses to stick to the fund for what they have used.
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