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In principle I don't mind the subscription model. For the most part, we need to keep software up to date anyway for security reasons. Paid version updates just

In principle I don't mind the subscription model. For the most part, we need to keep software up to date anyway for security reasons. Paid version updates just means that we're essentially forced to pay a large cost at random intervals when the software company feels like it, whereas subscription is usually somewhat more predictable. Lots of software companies used the transition to a subscription model as a way to disguise a large increase in costs though. What I don't like is how literally everything wants a subscription now, even things that don't provide any regular updates or online services. Overall, I quite like the JetBrains model where if you pay for a year's subscription, you get a perpetual fallback license included. Best of both worlds.

Spooky23 4y ago
The problem is that the subscription is used as a weapon to keep spend high. With the perpetual + 20-40% maintenance/support model, you weren’t dead in the water when the term ended. When the subscription goes, you’re toast. Subscriptions are like leasing a car. You pay an opaque premium to capitalize the software, a higher cost on the support and maintenance, and have no rights. Companies like Microsoft and VMWare also dumbed down the support, so you have to get another subscription to talk to competent people. At a large enterprise level, subscription software is valued like life insurance. If you’re a big spender, you need to look at the IRR of the company and how your multi-year commitment impacts the company’s market cap (and executive bonuses). $500k spend with a 3-year commit may be $10M of accounting dollars towards the bonus for the SVP. The strategy if you have the air cover is carrot/stick. You dangle some bullshit they really need to sell as the carrot and tell them to fuck off and walk if they won’t play. That gets attention, as the SVP who was looking at the fabric for his new boat is now scrambling to make his number.

Spooky23 4y ago

The problem is that the subscription is used as a weapon to keep spend high. With the perpetual + 20-40% maintenance/support model, you weren’t dead in the water when the term ended. When the subscription goes, you’re toast. Subscriptions are like leasing a car. You pay an opaque premium to capitalize the software, a higher cost on the support and maintenance, and have no rights. Companies like Microsoft and VMWare also dumbed down the support, so you have to get another subscription to talk to competent people. At a large enterprise level, subscription software is valued like life insurance. If you’re a big spender, you need to look at the IRR of the company and how your multi-year commitment impacts the company’s market cap (and executive bonuses). $500k spend with a 3-year commit may be $10M of accounting dollars towards the bonus for the SVP. The strategy if you have the air cover is carrot/stick. You dangle some bullshit they really need to sell as the carrot and tell them to fuck off and walk if they won’t play. That gets attention, as the SVP who was looking at the fabric for his new boat is now scrambling to make his number.