Cost Comparison: MS Office Subscription vs One Time Purchase Now that we've looked at what each version has to offer, let's talk cost. The one time purchase of Microsoft Office Home and Business is $249.99 per license. The one time purchase of Microsoft Office Home and Student is $149.99 per license. The paid subscription defaults to the plan you currently have. You can buy a different plan by following the steps in Buy a different subscription. If you want to buy your subscription before your trial is over, use these steps: In the Microsoft 365 admin center, go to the Billing Your products page. On the Your products page, find the. Software Subscription vs Outright Purchase. 23rd February 2014 3:52 pm 23rd February 2014. Once upon a time, you just purchased your software outright and it was yours to keep forever. Now many software vendors such as Microsoft and Adobe are offering you the opportunity to rent your software on a monthly subscription. Mobile Broadband (2.
- Purchase A Subscription Office 365
- Microsoft Office Subscription Vs Purchase
- Adobe Subscription Vs Purchase
- Microsoft Office Subscription Vs Purchase
- Office 365 Subscription Vs Purchase
Microsoft Office has been a longstanding staple in homes and workplaces for years. It has become a go-to productivity tool used by millions of workers. There are two basic versions of Microsoft Office. There's the traditional Microsoft Office one time purchase that has been around for quite some time. There is also the newer subscription-based version, Microsoft Office 365. So which option is the best option for you and what are the differences between the two plans? Today I'll take a look at both the monthly subscription plan and the one-time purchase option to help you make the best decision.
Microsoft 365 (formerly Office 365)
Microsoft's Office 365 is a subscription service that ensures users have the most modern productivity tools that Microsoft has to offer. There are multiple Microsoft Office 365 plans for home, business, large corporations, schools, and non-profits.
This subscription-based plan is considered the best option for users who want access to the full spectrum of Microsoft apps and perks on multiple devices. Users have access to the same benefits and apps that come with the one-time purchase Microsoft version but with added features, apps, and enhancements.
Word, Excel, Powerpoint, Outlook, Publisher, and Access are among the apps that users have access to across devices (PC, Mac, tablet, and phone). Up to six devices can access one account at one time and, depending on your subscription, users can share their account with up to five people for a total of six people with one subscription.
With the ability to access Microsoft Office 365 through multiple devices, users can start a document on their computer and access it easily on their phone or tablet at a later time. This ability to work across devices to easily get work done is unique with Microsoft Office 365 (the Microsoft Office one time purchase version does not include a cross-platform feature).
One of the biggest perks of Microsoft Office 365 is that users with this version will always be running the most current version of the apps.
Users never have to be concerned about new versions because it automatically updates every version and feature at no additional charge. This includes security updates, improvements, the latest features, and tools.
If you're a user who despises the cycle of updating your computers with the latest edition of Office every few years, then Microsoft Office 365 (recently rebranded to Microsoft 365) may be the right option for you.
Features Unique to 365
Microsoft Office 365 also comes with cloud features to enhance a user's productivity across devices.
Cloud Storage
With the subscription, users get 1TB of Microsoft's OneDrive cloud storage and up to 6TB in total when using a Family subscription. Subscribers can also purchase additional storage if needed. Up to an additional 1TB of storage can be purchased in 200GB increments for an additional $1.99 per month.
Technical Support
Technical support is also included with Microsoft Office 365, at no additional cost, for technical issues, subscription, and billing support. This differs from the one time purchase version of Microsoft which only has free technical support for installs.
Service vs Product
Like other subscription services, Microsoft Office 365 provides its users a service as opposed to just a product. Subscribers are given the right to run the suite's applications and access associated services. This service is only provided as long as payments continue. Once a user stops paying, the user loses their rights to run the applications and services. Users will have 30 days past the previous payment's due date to continue operating as normal.
You Have to Keep Paying
Just like subscription services are contingent on payment, so is the license for Microsoft Office 365. If payments are no longer made, then the license is revoked. Users can restore the license by resuming payments.
One Time Purchase Microsoft Office
The Microsoft Office one time purchase option is the more traditional route to use with Microsoft Office.
With the one time purchase option, users pay a single, upfront cost for one license/computer. This is Microsoft's stand-alone version of its popular suite of office apps. With no monthly or yearly subscription, users make a one time purchase which means they own that software license forever.
This version allows users to install their Microsoft Office apps on one computer and get security updates. Users are unable to access follow-up versions or access new features and tools unless they purchase it again at full price.
Although this version comes with apps that include Word, Excel, Powerpoint, and Outlook, it does not include some of the features that come with Microsoft Office 365.
Some of the features not included are:
- cloud storage,
- ongoing technical support, and
- the ability to work across devices.
The one time purchase option provides users with the license to legally run the software and gives the purchaser the right to use their version in perpetuity.
This means that there is no expiration date and the purchaser can use the MS Office Suite for as long as they like without paying any recurring fee.
Side by Side Comparison
Cost Comparison: MS Office Subscription vs One Time Purchase
Now that we've looked at what each version has to offer, let's talk cost.
- The one time purchase of Microsoft Office Home and Business is $249.99 per license.
- The one time purchase of Microsoft Office Home and Student is $149.99 per license.
So if users are looking to upgrade multiple computers at once (for example for a business), then purchasing the one-time version could be costly up-front.
Office 365 has two options for home users:
- Microsoft 365 Family – Offers users one convenient subscription for up to 6 people at $99.99 a year or $9.99 a month.
- Microsoft 365 Personal – Intended for use by one person for $69.99 a year or $6.99 a month.
Business users have three options with Microsoft Office 365:
- Business Basic – $5.00 per month/per user
- Standard – $12.50 per month/per user
- Premium – $20.00 per month/per user
Microsoft Office 365 also offers users an app-only option for $8.25 per month/per user. All business subscriptions require an annual commitment, which is different from G Suite, which is month-to-month.
So, Which Version Should You Choose?
The Microsoft Office one time purchase version may be more enticing than the monthly subscription for some, but it lacks the features and supports of Microsoft Office 365.
However, if you only need the basic features on a single computer, then the one time purchase could be sufficient for your needs. Personally – I run my own digital marketing agency from my home office, and I only need the one license … so that's what I have and use.
For users who intend to keep the same version of Office for many years, the one time purchase option may be the most cost-effective choice in the long run.
With that said …
If you're looking for access to a suite of apps, extra storage, and cloud-connected features, then Microsoft Office 365 may be the right choice for you.
Microsoft's subscription-based license comes with the added benefits of the latest features and tools, security updates, and ongoing technical support. A subscription is the best choice for users who frequently update their version of Office and those who need a budget-friendly way to add Office to multiple computers (which is why it has become so popular with businesses.
Subscription vs. perpetual software, what's the difference? How do you decide between a subscription-based software versus the tradition perpetual license model for your company? How do you know what will be better for your company in the long run?
It's a tough decision, we know, especially considering there a few vital points to consider before making a decision between subscription vs. perpetual license.
Knowing the difference between subscription vs. perpetual license is key which is why we're here to help. Gartner predicts that 'by 2020, all new entrants and 80% of historical vendors will offer subscription-based business models.'
Given that prediction, it is very likely that the perpetual license model could be obsolete within a few years. Join us as we outline why that is the case and how to embrace and implement a subscription-based software on your manufacturing floor that will prove to be more beneficial for your bottom line.
What is the Difference Between a Subscription Software and a Perpetual Software License?
The core difference between the two is that a subscription software is priced on a yearly or monthly basis and is an on-going subscription. A perpetual software license, on the other hand, is paid up-front in one, big lump sum. Then, you will typically pay a yearly maintenance fee which covers upgrades and support. Those maintenance fees typically cost between 15 and 30% of the initial licensing cost.
Purchase A Subscription Office 365
It's important to note that a subscription software includes all of the maintenance, upgrades, and technical supportin the subscription price – no need to pay hidden fees.
Subscription vs. Perpetual License Iceberg
An iceberg is the perfect depiction of the differences between the two types of software because it shows the 'above water' and 'below water' costs. In a subscription license, all of the benefits are provided up-front in one yearly or monthly fee – no hidden costs.
Compared to a perpetual license, you will pay an up-front cost, but that often doesn't include system upgrades, maintenance, customer support, or even an IT structure.
Microsoft Office Subscription Vs Purchase
What are the Benefits to a Subscription Software Model?
Adobe Subscription Vs Purchase
Subscription software is often referred to by an acronym – SaaS which means ‘Software as a Subscription'.
The major benefit of a subscription software model is the ease and simplicity for you, the customer. With SaaS software, the subscription includes all servers, storage, the management of that infrastructure, and essentially, everything that you need to actually run the software. You are able to implement a software that can improve efficiency on the plant floor, without the headache of running it yourself.
All things considered, it's cheaper to invest in a subscription software rather than a perpetual software because you're sharing the infrastructure between multiple companies, effectively making a subscription software cheaper in the long run.
Some people may think there is a security concern by sharing infrastructure between multiple companies, but there is no more of a risk involved with SaaS software than a perpetual subscription.
When you sign up for subscription-based software, there are a number of things the company is doing to ensure your safety:
- Outlining the agreed-upon conditions in a Terms of Agreement which will define the levels of access an individual will have to your data
- Consistently making updates to the software to ensure data safety and adhering to modern security standards
- Monitoring and fixing any bugs as they arise to guarantee your factory floor is kept-up-to-date and working efficiently
Why are People Hesitant to Leave a Perpetual Subscription?
Most people think a perpetual software subscription is less expensive, but in reality, that isn't the case.
Microsoft Office Subscription Vs Purchase
Since the up-front cost of a perpetual license is often a considerable amount, people feel like they can keep the software forever, but that's not really true because eventually, you're going to want to upgrade or need support which is often only provided for an additional fee.
So, let's say you pay 25% of the initial up-front costs for that yearly support and upgrades. You are essentially paying for your software again every four years.
Or, consider the fact that you must buy a certain number of licenses up-front for each individual using the product rather than purchasing just one software for everyone. It's often a cost many forget to factor in. Not only that, but what if someone leaves and you decide not to fill the role? There is an unused license that you will not recover costs on.
The other big drawback? If you use a perpetual software, you have to employ or have someone on contract to manage the entire software which includes obtaining the servers, fixing any errors or bugs, etc. It's a big expense to manage in terms of both cost and time.
Let's say you have a perpetual software and it's housed in an on-premise data center – who has to fix any issues or bugs as the arise? For example:
- What happens if the software is running slow?
- Or, it's running out of disk space?
- A new version of Google Chrome comes out, and it breaks the on-premise version, but you don't have support?
- Or, an upgrade is required, but all of a sudden the software isn't working?
In all of these instances, fixing the problem would fall on you, the customer. But, if you were using a subscription software, the software company would be there to help you fix any problems that arise – no extra costs added.
For most SaaS software out there, all you need is a web browser, but if you want to run it on-premise, you would need your own data center – a server, battery backup, back of the data, etc. The costs increase with on-premise software which is why subscription-based software can be very efficient.
Simply, there is less to deal with by using a SaaS software More and more companies are finding SaaS easier and for good reason.
Let's use an example to drive home the effectiveness of SaaS software with SensrTrx, a SaaS-based product.
Consider the speed of a product. If we find a bug in the SensrTrx software, we immediately fix the bug, and as a result, it's fixed for every manufacturer using SensrTrx – whether or not they had experienced the bug themselves.
Using the same example but in consideration of perpetual software running on-premise, the on-site IT department has to receive the update and then apply it, using precious time resources that could be otherwise applied to other functions.
It's clear that SaaS software is both cost and time-efficient while perpetual licenses are outdated and time-consuming. Www sketch com.
Office 365 Subscription Vs Purchase
As we mentioned above, SensrTrx is a SaaS software. There are a few good reasons for this.
- The costs of SensrTrx are transparent. What you see is what you get – no hidden costs for maintenance or support.
- The platform runs in the cloud and you don't have to manage any of the infrastructures.
- As mentioned above, if a bug is found, we can fix the issue, and fix it for everything. There is no need to provide an upgrade that requires the help of IT to implement.
- The simplicity of a SaaS software provides you with peace of mind and one less thing you have to worry about.
Subscription vs. Perpetual License: What's the Verdict?
We could go on and on about the benefits of a subscription-based software model, but it should be clear at this point which is the better option. With the right tools and software (ahem subscription-based!), you can put your company on a path to a more efficient and productive plant floor.
