Browse Definitions :
Definition

perpetual software license

Contributor(s): Matthew Haughn

A perpetual software license is a type of software license that authorizes an individual to use a program indefinitely. Generally, outside of termination, a perpetual software license allows the holder to use a specific version of a given software program continually with payment of a single fee.

Along with a perpetual software license, the vendor typically provides a technical support period of one to three years. During this initial period, the vendor also provides software updates often. However, updates may or may not be provided for free in perpetuity.

With perpetual software licensing, a customer pays an upfront charge for the software license as well as a limited supplemental support period during which additional benefits are included. After the support period ends, the customer has the option of continuing to use the current version of the software without additional support or paying a lower-cost fee to resubscribe for support and upgrades.

Use of perpetual software licensing is declining as subscription-based licensing increases in popularity. This increase may be in part a result of perpetual software licensing’s high initial cost. At the same time, however, it can be hard for the software vendor to ensure profitability in perpetual software licensing because of the uncertain term of licensing and unforeseeable future development costs.

This was last updated in July 2017

Continue Reading About perpetual software license

Join the conversation

1 comment

Send me notifications when other members comment.

Please create a username to comment.

Hi,
We are the gold partner of Oracle and we place the order behalf customer and oracle issue the license to the customer name directly and we billed to customer locally with 5% margin. We will pay to oracle for this. Please tell me as per IFRS 15 we can take revenue or not as full value of the billing .
Cancel

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

  • compliance as a service (CaaS)

    Compliance as a Service (CaaS) is a cloud service service level agreement (SLA) that specified how a managed service provider (...

  • data protection impact assessment (DPIA)

    A data protection impact assessment (DPIA) is a process designed to help organizations determine how data processing systems, ...

SearchSecurity

  • cybersecurity insurance (cybersecurity liability insurance)

    Cybersecurity insurance, also called cyber liability insurance or cyber insurance, is a contract that an entity can purchase to ...

  • phishing

    Phishing is a form of fraud in which an attacker masquerades as a reputable entity or person in email or other communication ...

  • cybercrime

    Cybercrime is any criminal activity that involves a computer, networked device or a network.

SearchHealthIT

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • disaster recovery team

    A disaster recovery team is a group of individuals focused on planning, implementing, maintaining, auditing and testing an ...

  • cloud insurance

    Cloud insurance is any type of financial or data protection obtained by a cloud service provider. 

SearchStorage

  • NVMe over Fabrics (NVMe-oF)

    NVMe over Fabrics, also known as NVMe-oF and non-volatile memory express over fabrics, is a protocol specification designed to ...

  • logical unit number (LUN)

    A logical unit number (LUN) is a unique identifier for designating an individual or collection of physical or virtual storage ...

  • CIFS (Common Internet File System)

    CIFS (Common Internet File System) is a protocol that gained popularity around the year 2000, as vendors worked to establish an ...

Close