Software as a Service (SaaS) Model
The annual license is also known as the subscription or software as a service (SaaS) fees which is billed annually. Annual per-user-per-year fees is all-inclusive of yearly license, technical support, software maintenance throughout the year. The subscription fees will decrease with more users, usually on a tiered basis.
The benefit of SaaS licenses are:
- The license fees are spread evenly over the life of the contract.
- Low upfront costs – only implementation services and first year annual license.
- Annual licenses are purchased out of an Institute’s operational budget which can be easier to access than an Institute’s capital budget.
This is the original enterprise software licensing model. In the perpetual model of licensing, the client makes an upfront, one-time purchase of the Academia and then client owns the software. With a perpetual license, client usually has to decide on the number of licenses (generally linked to number of students) client needs upfront. The cost per license will decrease with more licenses, usually on a tiered basis. The major benefit of perpetual licenses is that client has to pay just once and they are set to use Academia forever. The client then will only have to pay a fixed AMC each year.