The software companies of world has decided the answer to that question is yes. I first heard about subscription licenses from Adobe back in 2013. Then Microsoft followed. For good or bad, whether we like it or not, it’s here to stay.
I’ve had a crash course in subscription licensing this last year when PTC started offering subscription licenses for Arbortext software.
For some customers, it’s the absolute right choice. For the project-based services companies who need it to fulfill a contract, a one-year license is a real plus. The economics of services companies are very different from product companies. Margins are razor thin and when you only need a product for a little while, getting a temporary license for the length of your product can really boost your profitability.
Subscription licensing also changes the way the business categorizes the expense. Be sure to consult your business leaders to find out if this style of licensing is something they’re looking for.
PTC wrote an article about their subscription licensing. If you’re an Arbortext customer, it’s worth reading. Even though they’re using Creo as the example, you should know that all the same information applies to Arbortext subscription licenses. All Arbortext products now have subscription license pricing available.