RoseASP is witnessing a licensing paradigm shift for ERP software developers.

Some software developers are changing the way they license their products. The change is from an up-front charge for a perpetual license, to a periodic charge for a periodic license.

This change is powered by the following changes in the market:

1. Software-as-a-Service providers typically sell their licenses on a periodic basis; either monthly or annually
2. Current economic conditions make lower up-front costs attractive to users

This change in the way that users perceive they can purchase software licenses is putting pressure on all software developers to provide a periodic license option.

These are reasons why software developers should offer a periodic license option:

1. The preference for periodic licensing is growing, and if software developers want to appeal to a growing number of users, they will want to find a way to provide this option
2. Their competitors are doing it
3. Generally in business a stream of revenue is preferable to a lump sum, because it allows the business to better plan their operations
4. Concerns over protecting software developers’ intellectual property are mitigated when a third party hosting company is involved to administer license usage, user invoicing, and collections

The change is taking place. If you’re a software developer, do you want to participate?

Steve Chapman
Rose Business Solutions, Inc.
858-794-9401 ext. 150

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