Particular | Perpetual | Subscription |
Software License Fee | One time payment, Validity: Perpetual Entitlement: Software license alone, Annual support, Free updates. Upgrade charges apply. | Annual recurring payment, Validity: 1 year Entitlement: Software license, annual support, updates for 1 year. Upgrade charges apply. |
Annual License Renewal | First year ALR is included with the software license cost. ALR should be bought separately from second year onwards (will be valid for one year from the date of purchase) | Included in the annual subscription license fee |
Initial support period included in software license fee [Months] | 12 | 12 |
Updates | Available for valid ALR customers (perpetual) | Included in the annual subscription license fee (subscription) |
Upgrade fee | Paid at the time of upgrade based on the edition | Paid at the time of upgrade based on the edition |
Installing & training | Included in license cost. Additional training is chargeable & can be purchased separately | Included in license cost. Additional training is chargeable & can be purchased separately |
Implementation & Solution delivery | Included in license cost. Additional training is chargeable & can be purchased separately | Included in license cost. Additional training is chargeable & can be purchased separately |
Below shows Software cost of ownership calculation assuming, 100 units is the perpetual license fee |
Software License Fee: 100 vs 50 |
Annual License Renewal: 20 vs 0 |
Upgrade fee: 60 vs 60 |
3 year total cost of ownership assuming 1 upgrade during 3 years: (100 + (3 x 20) + (1 x 60) = 220) Vs ((3 x 50) + (1 x 60) = 210) |
3 year total cost of ownership assuming 2 upgrades during 3 years: (100 + (3 x 20) + (2 x 60) = 280) Vs ((3 x 50) + (2 x 60) = 270) |
Note: