As software deployment models shift towards the cloud, the monetization models that accompany software are changing as well. The most significant change over recent years has been the movement from a perpetual monetization model, where a company buys a license for unlimited use of a product, into a subscription service where businesses are billed at regular intervals.
This change reflects the industry’s desire for recurring revenue and flexibility about how they package and price their software. While perpetual licensing was once the most common model, subscription services are now seen everywhere, from Apple to large-scale B2B companies.