BRAVO TECHNOLOGY CENTER

Ways to "buy" software: The Definitive Guide by Sam C. Chan

First Published May 15, 2013 continuously updated
Major rewrite: Dec 2019 & Dec 3, 2021

COMMERCIAL
  1. obtain perpetual license (traditional method, since 1981, aka one-time "purchase")
    • buy a disc, or buy empty box with S/N label, or buy electronic S/N (via email)
    • you own the empty box, or the characters in email; but not the software; hence not yours to copy, nor transfer ownership (with the sale of your 3-year old box, let's say)
    • having the S/N allows you to install 1-time, but still require online activation before use, subject to license server approval
    • once activated, no further enforcement; can backup system state as fallback point
    • use the software as stipulated (see "shrink-wrap" EULA), until end-of-time
    • can recover via sys-img after crashes, including hard drive (but NOT motherboard) replacement, even when software vendor is out-of-business
    • e.g. Windows 10 Pro; Quickbooks 2021 Premier; QBES14; Photoshop CS6 (2012)
    • optionally, obtain version upgrade at discount, if within upgradable period/version span e.g. Retrospect, ACDsee... But, most charge same price for version upgrade/new. e.g. Windows, Office, QuickBooks. NOTE: edition upgrade is a whole different matter!
    • in addition, many outfits handle leasing on the front-end; oft bundled with hardware... complete package "1 low monthly payment" (that's how most corporations handle the 3-year lifecycles like clockwork)
  2. initial license, plus annual renewal fee (start @year 1 or @year 2)
    • aka mandatory support/maintenance/reactivation; aka base lic + annual lic/seats
    • e.g. SEP $60/$25; ACS ?/?; Zello $7500/$2500; Windows 10 Enterprise $149/$75
  3. Subscription: same as perpetual, except... a layer of enforcing software is inserted... 
    • deployed exactly the same way as before, but now
    • all version upgrades are free
      • factored into the subscription fee, and then some...
      • so you can say, it's forced purchase
      • solves the problem of "cheapskate customers dragging their feet"
      • What? not your problem?! Just be grateful that it's solved for you before you realize you have a problem!
    • no provisions for holding back upgrades (for strategic reasons and per-policy)
      • will force your friends & associates not on subscription plan to "buy" new version to remain compatible with you
      • have a few legacy stations at your site, with model year a decade back? buy new version now... trigger OS upgrade... new hardware requirements...
      • too senile to learn new UI and menu sequence? too bad, get with it!
    • constantly "phone home" to validate license... else cut off completely, or switch to limited read-only mode (to serve as advertising). 
    • require periodic Internet access: If communication is disconnected, software will cease working after n hours/days grace period, despite you having paid up a year in advance.
    • e.g. Photoshop CC 14.0† (2013); MS Office 2013‡; QuickPayroll 2019† (under the moniker Pro Plus) QBDT2022† now known as Pro Plus & Premier Plus
  4. SaaS Web-based apps (access via browser)
    • use web browser as alternate OS platform, allow any web site to push scripts (executable program chunks) to you, and run on your PC. Such custom programs are given nearly full power & ownership on your local PC. They act as front-end to web sites, and may improve the aesthetics & users experience vs pure HTML + CSS. They like to call it "more dynamic" experience.
    • e.g. SalesForce.com (the industry darling, perpetually featured in Inc/Forbes);
    • e.g. Invoice Ninja; Freshbooks; Zoho
    • e.g. Webmail (free... well, you're paying 50¢ to 75¢ per mailbox already)
      • in lieu of furnishing a PC with Outlook/Thunderbird installed/configured...
      • just VISIT a web site, which provides a peep hole into a computer running email client, with the software display rendered into web content on-the-fly. 
      • It's relatively clumsy, laggie and flickering, with incessant refresh, elements filtering in visibly, panes moving all over the place at times. 
      • Can do it without gear on you: insert coins at airport public web terminals for 15 min of surfing; 
      • or tote a $150 used Chromebook.
    • e.g. SaaS casino games with monthly fee, unlimited play
    • e.g. Youtube Premium $12/month; same as free web site, same content + a few extra (old movies), login to stop ads
    • e.g. QBO simple start/essentials/plus/advanced $25~$54/mo (discounts available, just for the asking)
    • e.g. FREEBIE watered-down OFFICE: Microsoft Office Online; Google Docs/Sheets;
  5. Hosted Applications (access via RDP client, or proprietary remote)
    • behind the scene: same as perpetual, but someone else at off-site location owns the PC, obtained the software + upgrade, installed it, actively maintain it, pay for electricity + cooling, and closet/rack space. You simply remote in to use it.
    • FYI: I'm a small time hosted app provider. You can also become one, by renting out time slots to untapped virtual sessions; or deploy a dedicated fleet of new boxes on racks, after adding electric circuits. NOTE: Exact TOS wording is critical, lest you fall into trap... and they haul you away to jail. Case laws are well-matured in this area.
SHAREWARE
  • this business model started with PC-Talk in 1982: free to copy diskette, if it works for you, send in $20 donation... much cheaper than Crosstalk
  • it never worked: nearly 0% donate... later spawned trialware, ad-ware, crippleware, freemium... I have written much about this elsewhere, not repeating
  • Trialware: enforced 1-time trial (virtually all) / permits repeated cycles of uninstall/download fresh copy/reinstall e.g. drivesnapshot
OPEN SOURCE (FOSS)
  • 1983: started with GNU/GPL... fast forward to today: essentially commercial paid edition + free reduced-feature community edition, charge high fees for support
  • e.g. LibreOffice 7, Linux, FreeBSD, SmoothWall, pfSense
FREEWARE (GPL or otherwise)
  • Labor of love. No cost. No strings attached. No tied to commercial promotions.
  • e.g. SoftMaker FreeOffice 2006, ImgBurn, PuTTY, Rufus, DesktopOK, UltraVNC

Here... let's focus on Commercial only, and disregard all the rest. Those require entirely separate discussion.

VERY colloquially speaking...

#1 = 1-time "purchase," could be on payment plan, install locally

#2 = #1 + recurring top-off

#3 = #1 + forced upgrade, must periodically (hourly?/monthly?) connect to Internet, typically ships out massive surveillance data, to better serve you in the future. Paid monthly/annually

#4 = establish browser as proxy for OS, download, install and run programs locally on-demand, in chunks (without your action/knowledge), pay monthly for the privilege

#5 = let someone else do #1 (and all that it entails), you remote into them, pay them monthly for the privilege... leaving a VERY healthy margin, for them

NOTE: Only #4 involves some proprietary software running on remote server not available anywhere else, and cannot be installed conventionally on your PC. WHEREAS all the rest are exactly the same conventional application software package. Devil in the details of payment scheme, and amount over time.


†as sole option, at the time of introduction

‡as new promoted SKU#, while perpetual license option is withheld, unless you ask for by name, or protest the subscription offered



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