4 ms·

Are you selling B2B or B2C software? They're very different worlds. B2B customers overwhelmingly would prefer to pay subscriptions instead of fixed up-front fe

Are you selling B2B or B2C software? They're very different worlds. B2B customers overwhelmingly would prefer to pay subscriptions instead of fixed up-front fees. It scales up and down with use, carries less risk when trying something new, is easier to evaluate "is this worth it?", and preserves cash. B2C customers overwhelmingly would prefer not to pay for anything at all. :)

Silhouette 11y ago
B2B customers overwhelmingly would prefer to pay subscriptions instead of fixed up-front fees. Not necessarily. For example, none of my businesses use any software on a rental model where it is critical to our business and having it changed or switched off in the future could cause serious damage. Recent versions of several expensive professional applications we use have gone subscription-only, and our response is simply that we'll keep using the older versions and do without the latest features. If that ceases to be viable because we can't buy any new copies we need any more, we'll take our entire business elsewhere. I have yet to encounter any software at any price in the business world where there really is no sensible alternative to paying an arbitrarily high price forever and for risking your business taking a big hit if the software gets turned off. And while sometimes compatibility and data formats can form a significant barrier, I have also yet to find any issue that truly could not be overcome or any customer, client or supplier we couldn't work with because they were using the latest and greatest version of something and we weren't (or vice versa).
- petra 11y ago
  >> none of my businesses use any software on a rental model where it is critical to our business and having it changed or switched off in the future could cause serious damage. That makes sense. I do wonder why nobody offers a subscription service but with some kind of a lease like option, when after paying X months(or when stability is at risk, or too big of a change happens) - you can with a button click port it to a 3rd party hosting and pay only hosting fees ? That seems to better align with the customers , right?
  - trentmb 11y ago
    Isn't that what JetBrains switched to?
    - jaymzcampbell 11y ago
      That's correct, they have this 'perpetual fallback' model which I wish more companies would offer, it makes it feel like you won't lose out on your investment even if you grow out of the subscription; though they are (mostly) offering IDEs without cloud services to host and maintain which no doubt makes this an easier thing to deal with. They've some nice diagrams illustrating how it kicks in here: https://sales.jetbrains.com/hc/en-gb/articles/207240845-What-is-perpetual-fallback-license- https://sales.jetbrains.com/hc/en-gb/articles/207240845-What...
Spooky23 11y ago
That's just true at all. Try reducing your Microsoft O365 subscription. Unless you are paying retail, they'll link your "subscription" to your EA and threaten you with a SAM if you try to unlink them. Other providers are just using the subscription as a way to jack up your "maintenance" they shift that 20% cash flow to 35-40%, and you retain no perpetual rights.
- r00fus 11y ago
  Sorry what are EA and SAM? I'd really like to know more about your concerns. Microsoft is in a rare position: they essentially have a monopoly - which seems more relevant to your pricing concerns.
  - bblough 11y ago
    > what are EA and SAM? Enterprise Agreement and Software Asset Management (basically a license audit)

Silhouette 11y ago

B2B customers overwhelmingly would prefer to pay subscriptions instead of fixed up-front fees. Not necessarily. For example, none of my businesses use any software on a rental model where it is critical to our business and having it changed or switched off in the future could cause serious damage. Recent versions of several expensive professional applications we use have gone subscription-only, and our response is simply that we'll keep using the older versions and do without the latest features. If that ceases to be viable because we can't buy any new copies we need any more, we'll take our entire business elsewhere. I have yet to encounter any software at any price in the business world where there really is no sensible alternative to paying an arbitrarily high price forever and for risking your business taking a big hit if the software gets turned off. And while sometimes compatibility and data formats can form a significant barrier, I have also yet to find any issue that truly could not be overcome or any customer, client or supplier we couldn't work with because they were using the latest and greatest version of something and we weren't (or vice versa).

petra 11y ago
>> none of my businesses use any software on a rental model where it is critical to our business and having it changed or switched off in the future could cause serious damage. That makes sense. I do wonder why nobody offers a subscription service but with some kind of a lease like option, when after paying X months(or when stability is at risk, or too big of a change happens) - you can with a button click port it to a 3rd party hosting and pay only hosting fees ? That seems to better align with the customers , right?
- trentmb 11y ago
  Isn't that what JetBrains switched to?
  - jaymzcampbell 11y ago
    That's correct, they have this 'perpetual fallback' model which I wish more companies would offer, it makes it feel like you won't lose out on your investment even if you grow out of the subscription; though they are (mostly) offering IDEs without cloud services to host and maintain which no doubt makes this an easier thing to deal with. They've some nice diagrams illustrating how it kicks in here: https://sales.jetbrains.com/hc/en-gb/articles/207240845-What-is-perpetual-fallback-license- https://sales.jetbrains.com/hc/en-gb/articles/207240845-What...

Spooky23 11y ago

That's just true at all. Try reducing your Microsoft O365 subscription. Unless you are paying retail, they'll link your "subscription" to your EA and threaten you with a SAM if you try to unlink them. Other providers are just using the subscription as a way to jack up your "maintenance" they shift that 20% cash flow to 35-40%, and you retain no perpetual rights.

r00fus 11y ago
Sorry what are EA and SAM? I'd really like to know more about your concerns. Microsoft is in a rare position: they essentially have a monopoly - which seems more relevant to your pricing concerns.
- bblough 11y ago
  > what are EA and SAM? Enterprise Agreement and Software Asset Management (basically a license audit)