>>What do you think of if I say: "Licence Fee"?
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>>When I was asked this question I thought of a monthly (or yearly) fee paid to someone for software support and software upgrades.
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>>Is it nomal for software packages to charge both a price for buying the software and also a licence fee?
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>>Any thoughts (random or otherwise) are welcome.
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>>Einar
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>Einar;
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>I am not sure what “normal” is when it comes to business practices. A business will do whatever the customer will allow as far as extracting money for a service or product, if it is necessary to the customer. “Necessary”, may be a perception or a reality on the part of the customer. That is where Marketing and Sales take over and reality becomes obscured.
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>“Normally”, well always, I have paid for software and have had to agree to its licensing terms, and conditions. Over the last five years or so in some cases you purchase software and an annual “subscription”, which will include upgrades and in some cases patches.
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>A few years back a software company would sell a product and give patches for free. The business model of the software industry is dynamic and ever changing. Anything to make a buck! If you are willing to pay the software company will gladly take your money! :)
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>To me the subscription based software offering means the following:
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>1. Make a profit.
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>2. Get the product to market ASAP – even if it has problems.
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>3. Make a profit.
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>4. Let the purchaser through his/her subscription pay for the resolution of anomalies (bugs). That part bothers me!
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>5. Make a profit.
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>Did I mention make a profit? :)
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>I somehow dislike having to finance a software company to allow it to resolve bugs in its code, through my subscription! Integrity and morals have little to do with business. Laws control business practices. A company with a good product should last longer than a company that delivers garbage. That last statement is not always true, as you may know. Knowing how to stay in business is more important than having a good product or service.

Tom,

You mentioned subscription but Einar did'nt mentioned that in any way in his original post.

So to me this means that you make a direct relation from subscription to paying a license fee per year to continue to use a given software.

The difference I see between the two models is this:

Subscription : You pay an amount to have the right to use a software. You stop paying and you can't use it no more.

License : You bought a software but that software will always evolve so you pay a license to get all the updates, patches... for a year. You stop paying and you'll have to keep using the version you presently use with the possible bugs and you won't have access to the updates until you pay again for another license.

You agree with that?