Is Subscription Model Suitable for On-Premise Applications?

As the world’s economy is finally emerging from the current lockdown, the ability to restore growth and achieve sales will be the most challenging task that companies will need to deal with. On-Premise applications, for example, are considered to achieve the best strategy for companies that are not capable of making huge investments for the sake of accelerating the customer buying process.

When using a subscription model on on-premise applications, for example, if the investment decision is below the threshold levels, both customers and vendors will have the possibility to benefit from it. Thinking from a technical perspective, the licensing application must be easily accessible by both vendor and customer where they will have the ability to check the terms of the license.

Using this model might bring some disadvantages too. In the initial stage of implementation, this strategy will certainly bring some damages to the company’s cashflow that in return will bring a long-term pay-back. Moreover, it would be highly advisable for companies that decided to implement this strategy to have solid financial resources as the upfront cash will be drastically reduced.

In a nutshell, the companies that have decided to take advantage of some licensing models such as Subscription, not only have a different charging model than the perpetual licensing solution companies but, they also have the possibility to better engage with their consumers and create stronger relationships.

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