Perpetual Software
Perpetual software is software licensed to a customer for indefinite use through a one-time purchase, rather than an ongoing subscription. The customer owns the right to use that version indefinitely, though updates and support are often time-limited or separate.
Key Takeaways
- Licensed once for indefinite use of that version.
- Contrasts with subscription (recurring) licensing.
- Updates and support may be separate or time-limited.
- Microsoft has shifted most products toward subscriptions.
How perpetual licensing works
The customer pays once and may use the licensed version indefinitely. Newer versions usually require a new purchase, and support windows are defined separately, which is the main contrast with subscription models.
Why it matters for Microsoft CSPs
Most Microsoft products have moved to subscriptions, but perpetual licensing still appears in some scenarios. Knowing the difference helps partners advise customers and bill each model correctly.
Perpetual vs subscription licensing
Perpetual is a one-time purchase for indefinite use of a version. Subscription is a recurring payment for continued use and updates, which is how most CSP products are sold.
How Work 365 supports this
Work 365 bills recurring and one-time charges, so partners can handle subscription and perpetual scenarios in one place. See Billing and Invoicing.
Related terms: SaaS, Subscription Management.
FAQ
What is the difference between perpetual and subscription software?
Perpetual is bought once for indefinite use; subscription is paid on an ongoing basis for continued use and updates.
