July 21, 2021

Cloud or Perpetual Software – What’s Right For You?

Cloud computing is defined as the practice of storing, managing, and processing data on a network of remote computers housed on the internet rather than on a local server or personal computer. Perpetual licensing, on the other hand, refers to the conventional manner of obtaining software in which you pay for the license in advance and have the right to use it indefinitely.

The main distinction between cloud software and perpetual license software is that cloud software is charged on an annual or monthly basis and is an ongoing subscription. Perpetual plan licenses, on the other hand, are paid in one big lump sum upfront. After that, you will usually have to pay a yearly maintenance fee to cover upgrades and support.


The following are the key differences between cloud and perpetual software licenses to consider when making your decision.

Cloud products make compliance easier:
Because cloud computing is a subscription-based service (SaaS), you can only use it if you pay for it. Due to the nature of licensing, you will only receive the product you ordered: nothing more, nothing less. This contrasts with perpetually licensed software, which may be deployed quickly but is difficult to track and administer.

Cloud software is frequently updated:
You can rest assured that you are always running the most recent version of the software. On the other hand, perpetual licenses updates are a lot less frequent and often require an upgrade fee.

Cloud is cost-effective:
It’s more beneficial to invest in a cloud-based platform than perpetual as you’re sharing the infrastructure with multiple organisations, making the cloud platform cost-effective.

Cloud increases security:
After migrating to the cloud, 94% of businesses claimed to have improved their security. 91% of respondents stated the cloud made meeting government compliance standards easier. Perpetual licenses require that all data is stored on a local server or personal computer which can open up your company to a lot of risks included lost, damaged, or stolen data.

Cloud offers more access to insights:
For an overview of your data, several cloud-based storage options provide integrated cloud analytics. With your data in the cloud, you can quickly deploy tracking systems and create personalized reports to analyze data across your entire organization. You can improve efficiencies and create action plans to fulfill organizational goals based on these findings.

According to a study conducted by International Data Group, 69% of firms are now adopting cloud technology in some capacity, and 18% expect to do so at some time in the future. Meanwhile, Dell claims that businesses that invest in big data, cloud, mobility, and security generate their revenue 53% quicker than their competition. As seen by these statistics, a growing number of tech-savvy firms and industry leaders are seeing the many advantages of the cloud computing trend. But they’re also employing technology to operate their businesses more efficiently, provide better service to their clients, and boosting their overall profit margins.

At INX Software, we see the benefits of having cloud-based products. One of the major benefits for us is the simplicity of use for our clients. The SaaS software includes all servers, storage, infrastructure management, and virtually everything you’ll need to run the business. You can adopt software that will increase productivity without the hassle of running it yourself.