The Great Debate: Should You Own or Subscribe?

This post first appeared on the FOXITBLOG.

Dotting Twitter posts and scattered throughout Reddit threads, you’ll encounter a subject of increasing debate. And no, it’s not about avocado toast vs. housing affordability or the ethics of artificial intelligence in robotics (shivers at robot dogs). It’s the subject of digital ownership.

You may (or may not) be surprised at how divided the internet is on this topic. Everyone has personal preferences, often drawing a hard line in the sand on one side or the other. So, with all these differing opinions, how do you decide what’s right for you? What’s right for your business?

Let’s begin where we always prefer to start – the numbers. Because numbers don’t lie, and they certainly don’t bend to the winds of opinion.

Subscription vs. Ownership: Just the Facts

According to a study of 13,000 people conducted by Washington State University, a significant 74% of adults surveyed believe that subscription-based models for things like food, clothing, software, music, movies, and other goods are here to stay. Interestingly, the same study found that more than half of people (57%) are no longer interested in owning these goods.

And how many adults are subscribed to at least one service? 70%. Five years ago, this number was 50%. That’s a significant jump.

Now that we’ve peeked at the numbers, which overwhelmingly favor subscription services, we’re left with the question of why. Well, this same study provides some pretty interesting insights:

1. Freedom from Ownership: The study states, “People aren’t as interested in filling their homes with physical goods anymore. They don’t want to deal with upfront costs, the hassles of maintenance, and the frustration of obsolescence. Why buy and own something if there is an easier way to get the same or even better outcome?”
2. Status is No Longer Defined by Ownership: People nowadays are more interested in experiences than in owning cool things. Need further proof? Simply scroll through your Instagram feed. To quote the study, “Experiences are the new status symbol.”
3. Ownership as a Burden: According to the study, “They free themselves from maintenance and upkeep on all of these things. Why hassle with ownership when you can just use things whenever and however you need them?”
4. Cost Factors: Ownership often requires more upfront costs and limits customers’ access to selections. For example, “Just a few years ago, people had to purchase CDs at a cost of $15 to $20 each if they wanted to enjoy their favorite band’s new offering. Today, for a subscription price of about $10 per month, they can enjoy unlimited music from unlimited groups through services such as Spotify and Pandora. True, they do not own anything—but what difference does it make when they can listen to the music they love anytime, anywhere, at the push of a button?”

That said, product ownership is not without its merits. It’s often a matter of personal taste. When you closely examine both subscription and product ownership, the differences are primarily preference-driven.

What Are the Benefits of Subscription vs. Perpetual Software?

Let’s take a closer look at what we mean.

• Cost-Effectiveness Over Time vs. Lower Initial Cost: Ownership involves a one-time purchase that may be cheaper in the long run, while subscriptions typically have lower upfront costs, making them more accessible initially.
• No Recurring Fees vs. Regular Updates and Improvements: Owning a product eliminates ongoing payments, while subscriptions provide regular updates and new features without additional costs.
• Complete Control vs. Access to the Latest Technology: Owners have complete control without restrictions, while subscribers benefit from access to the latest technology and innovations as they are released.
• Personalization and Customization vs. Flexibility and Scalability: Ownership allows for modifications that are not always possible with subscriptions, whereas subscriptions offer flexible terms and scalability to meet changing needs.
• Long-Term Reliability vs. No Maintenance Responsibility: Ownership is preferred for durable goods with long-term reliability, while subscribers are not responsible for maintenance or repairs, which the provider handles.
• Availability of Use vs. No Long-Term Commitment: Owned products are always available for use, while subscriptions offer the flexibility of short-term use without long-term commitments.
• Simplicity and Convenience vs. Bundled Services and Features: Managing ownership is simpler without tracking renewals, whereas subscriptions may include bundled services and features, enhancing overall value.

SaaS: Subscription as a Service vs. Perpetual Software Licensing

Cost Structure:

• SaaS: Involves lower initial costs with subscription-based pricing but requires recurring monthly or yearly charges.
• Perpetual: Requires a higher upfront investment with a one-time purchase, which can be more cost-effective in the long run but may present a barrier for some users.

Updates and Maintenance:

• SaaS: Offers automatic updates and improvements, ensuring access to the latest features and reducing the IT burden for maintenance and security.
• Perpetual: Users must manually update or purchase new versions and are responsible for maintenance and security.

Flexibility and Scalability:

• SaaS: Provides scalability and flexibility to adjust resources based on current needs, ideal for businesses with fluctuating demands.
• Perpetual: Offers limited scalability, as licenses are fixed and may not adapt to changing business needs.

Longevity and Reliability:

• SaaS: Relies on the provider’s continuity and service terms, with risks if the service is discontinued.
• Perpetual: Offers long-term reliability, allowing users to continue using the software without service interruptions.

Access and Availability:

• SaaS: Enables access from anywhere with an internet connection, facilitating remote work but dependent on stable connectivity.
• Perpetual: Can often be used offline, providing reliability without internet dependency but limited to the installed environment.

Questions to Ask When Weighing Perpetual Licensing vs. Subscription Software

• What are the upfront costs of purchasing versus the ongoing subscription fees, and which option is more affordable in the long run?
• How important is access to the latest features and updates, and are these typically included with a subscription?
• Are your needs likely to change over time, and does the software need to scale accordingly?
• Do you need remote access or offline functionality often offered by cloud-based subscriptions?
• Does your budget allow for a one-time purchase, or is it more manageable to spread costs over time through a subscription?
• What level of support and maintenance is included, and does a subscription provide ongoing support services?
• What are the security and privacy implications of both options, especially if the software handles sensitive data?

In the end, the choice between SaaS and perpetual licensing is not just a financial decision; it reflects your priorities, business needs, and perception of value. The decision rests with you—what will it be: the certainty of ownership or the flexibility of subscription?

Fortunately, with Foxit PDF, you don’t have to choose. We offer a variety of subscription options and a perpetual licensing model, allowing you the freedom to select what works best for you.