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Andy Brice
Successful Software

Doug Nebeker ("Doug")

Jonathan Matthews
Creator of DeepTrawl, CloudTrawl, and LeapDoc

Nicholas Hebb
BreezeTree Software

Bob Walsh
host, Startup Success Podcast author of The Web Startup Success Guide and Micro-ISV: From Vision To Reality

Patrick McKenzie
Bingo Card Creator

Ratio of perpetual to subscription license


Are there any common ratio?
How it sounds if I offer

$X for a perpetual license
and another 0.2X for annual support and software updates (every year)


$0.45X for annually subscription license (every year)

I consider to offer them both.
There are pros and cons for each. Some customers prefer subscription license, while others prefer a perpetual license.

My software is B2B. Most of the customers are enterprise shops.

Thank you
Mosh Send private email
Sunday, January 31, 2016
Just wanted to add that "X" is around $3000 .
Mosh Send private email
Sunday, January 31, 2016
The license price + 20% annual support model is normally associated with traditional installed products, whereas the subscription model is popular for cloud based products.

We are busy transitioning our business to a cloud based model. In our particular case, it is more profitable selling on a subscription based model. This is assuming that your product has sticky properties and your customers will continue to use it.

Our monthly pricing for the cloud is around 10% the total cost of on premise. Our service requires alot of resources, so perhaps, yours can be 5% or even 1%.

I'd be interest to hearing other people views on this..
jamieb22 Send private email
Sunday, January 31, 2016
How do you measure "the total cost of on premise"?

I'd like to emphasize that my solution is on-premise only. I'm asking about the payment only.

Thank you
Mosh Send private email
Sunday, January 31, 2016
Adobe went with the subscription model, as did Autodesk - see http://store.autodesk.com.au/store?Action=html&Env=BASE&Locale=en_AU&SiteID=adsk&pbPage=Listing

I am going with the subscription model too, same price as AutoCAD since my app www.tvCAD.tv - is a companion for AutoCAD

Price-wise, AutoCAD went from a $7.2k buy + $750/yr to $2,370 /yr or $295 /month subscription.

All of my prospects (B2B) have been quite vocal about wanting on-going support.
Ewen Wallace Send private email
Thursday, February 04, 2016

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