In our previous article: Microsoft Licenses – Subscriptions or perpetual usufruct? Which option is better for your business we examined the strengths and weaknesses of both licensing models, providing a comprehensive comparison. Below is a detailed overview of the costs for these options.
Business Central license fees
The example illustrates a 5-year cost projection for a company using Business Central with 20 users. We calculated licensing expenses over this period to provide a clear understanding of the financial aspects associated with each licensing approach.
A comparison of licensing models often shows significant differences in cost structure, especially over the long term. The chart shows how the two models evolve in terms of cost.
The subscription model appears more cost-effective at the outset, with lower start-up costs, making it an attractive solution for companies that want to implement a system quickly without incurring a large one-time outlay.
In the holding model (perpetual license), the company must initially pay a larger sum to purchase the software. However, after a certain period, it no longer incurs regular licensing costs. The chart shows that in the long run, subscription costs start to equal the price of a one-time purchase, and after a certain point, the subscription may become slightly more expensive.
Advantages of subscription
However, it is worth noting that a subscription offers:
- Ongoing technical support,
- Access to the latest updates,
- Flexibility in scaling the number of users,
- Low, regular costs.
The subscription model is undoubtedly a better option for companies needing flexibility and regular updates. Unlike a one-time license, a subscription allows you to adapt the system to your company’s changing needs. The ability to spread the cost over smaller, regular payments makes the subscription model more affordable and flexible, especially for companies with changing needs and limited IT investment budgets.
Choosing the two models ultimately depends on a company’s needs, development plans, and budget. However, for rapidly growing companies, the subscription model offers greater flexibility and the ability to continuously adapt the system to new business conditions, making it a more attractive option.
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