Perpetual License

A licensing model, where the cost to own an application is calculated up-front and charged to the licensee in return to a perpetual (forever) right to use the software. In e-commerce platforms, there is sometimes a mandatory annual maintenance cost of between 12% and 25% of the perpetual license cost to provide support for bug fixes and sometimes upgrades, while upgrades are not always covered.

This model usually makes more sense to larger Enterprise with more capital, but can be sensible for smaller operations given the right criteria.

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