In recent years, many software companies have begun to offer a subscription model instead of the traditional eternal model. In 2011, Microsoft launched MS Office 365, given the increasing competition from similar Google services. In addition to Office 2013, Microsoft includes social networks, collaboration and cloud storage services such as Lync, Exchange, SharePoint (in business edition) and free space in OneDrive. Because resource requirements can be changed from period to period, recurring revenue companies may be less scalable than saaS and subscription companies. The ramp-up of the subscription model for software licenses with differences and similarities to the software as a service delivery model. The CAD world has also moved in this direction, even though the offers are not yet developed. Siemens SOLUTION PLM Solid Edge is one of them. Users access the monthly subscription license through the Solid Edge online store, then download a full version and run it on their own computers. The offer is not cloud-based and users can continue to choose between the indeterminate option and the subscription. In a way, subscriptions are very similar to term licenses, and they are essentially. A common distinction between the two is that subscriptions include the right to use software, maintenance and support, while futures licenses are really reserved for the right to use the software.
The distinction affects several clauses of a SaaS agreement: it is common for a customer to acquire a subscription contract that his company does not use at the end. The value of the subscription is spread over the lifetime. However, customers can expect to no longer pay the subscription fee if they cancel mid-term. Otherwise, they may consider that they must be reimbursed for each portion not used. If the language of the contract is vague and ambiguous, the customer may be right in the end. What is the difference between all these agreements and what is best for a SaaS product? Some software providers have switched to the subscription model, but their offer cannot be called “pure SaaS” because the software is still installed on the local computer instead of being hosted by the provider, and it is not delivered over the Internet. In this case, the SaaS label could be misleading and perhaps should be listed for software as a subscription, not a service. First of all, it`s probably a good idea to issue a few lines for the difference between subscription and SaaS. SaaS stands for Software as a Service. The software is provided online via a browser and hosted by the software provider (or another third party).