I am surprised by the number of software companies which have switched to the pay as you go model. Instead of charging a one off licence fee they apply an annual or monthly fee which keeps the software unlocked for use. It’s never the market leader making such a move but one of the smaller suppliers. It offers them a price differential pitch. One has to hope that small business owners do their homework on the total cost of ownership and realise the risk of taking on pay as you go software.

We will not embrace this model as we consider it unfair on the client. By charging a once off licence fee and making annual software support coverage optional everyone knows the cost going into the transaction and can control the annual fee going forward.

When people ask, I tell them to be very wary of pay as you go software. I know of a couple of instances where monthly fees have risen significantly in the last six months – blowing the budget of some users and making the system more expensive from year two on. Often by then the business has spent too much.

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