The Hidden Pitfalls of the Software Subscription Model

The software subscription model has started to take over the traditional purchase and own model. Companies tout the benefits of only paying for the service when they need it and easily upgraded. What are the hidden pitfalls of the subscription model for users?

1. Subscription services tend to start low. After the users have been with the subscription service for several months and probably cannot revert to the old software application on to go back, the software subscription service can go up in price.
2. Customers encounter problems because most cloud services are proprietary and not interoperable. Once you’ve used one cloud vendor, it is hard to switch to another.
3. Software subscriptions tend to be used by vendors who offer software or data storage on the cloud. When you use cloud based services, you become reliant on their security, both security of their internet services and the cloud servers.
4. When you use software on the cloud, you may not have the option to stay with an older software version you like. If you can only access the application version they provide, you upgrade whether or not you want to – and regardless of whether the other apps you use can handle the new version.

What challenges has your company encountered in switching to the subscription model for software? Please discuss in the comments.

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1 Comment so far

  1. DW

    In some cases, an upgrade to the cloud application requires an update to local software (i.e. Java); which can introduce new bugs and may be incompatible with older hardware computer systems. The cloud computing forces an immediate and unplanned IT computer upgrade instead of a planned roll-out with internally known and tested software.

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