Perpetual Vs Subscription

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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 Support Assurance First year ASA is included with the software license cost. ASA 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 ASA 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 Support Assurance: 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:

  1. Granting subscription license is the sole discretion of GoFrugal. For getting subscription license, the business should be financially stable and in business for more than 5 years
  2. Annual Support Assurance has to be bought for a period of one year. It includes support and updates only. Upgrade charges will be separate
  3. Users can switch from subscription to perpetual licensing model as governed by GoFrugal rules and regulations.
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