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

SearchCompliance

  • compliance audit

    A compliance audit is a comprehensive review of an organization's adherence to regulatory guidelines.

  • regulatory compliance

    Regulatory compliance is an organization's adherence to laws, regulations, guidelines and specifications relevant to its business...

  • Whistleblower Protection Act

    The Whistleblower Protection Act of 1989 is a law that protects federal government employees in the United States from ...

SearchSecurity

  • Transport Layer Security (TLS)

    Transport Layer Security (TLS) is a protocol that provides authentication, privacy, and data integrity between two communicating ...

  • van Eck phreaking

    Van Eck phreaking is a form of electronic eavesdropping that reverse engineers the electromagnetic fields (EM fields) produced by...

  • zero-trust model (zero trust network)

    The zero trust model is a security model used by IT professionals that requires strict identity and device verification ...

SearchHealthIT

SearchDisasterRecovery

  • cloud insurance

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

  • business continuity software

    Business continuity software is an application or suite designed to make business continuity planning/business continuity ...

  • business continuity policy

    Business continuity policy is the set of standards and guidelines an organization enforces to ensure resilience and proper risk ...

SearchStorage

  • solid-state storage

    Solid-state storage (SSS) is a type of computer storage media made from silicon microchips. SSS stores data electronically ...

  • persistent storage

    Persistent storage is any data storage device that retains data after power to that device is shut off. It is also sometimes ...

  • computational storage

    Computational storage is an information technology (IT) architecture in which data is processed at the storage device level to ...

Close