Sage Pastel • Perpetual License vs Pastel Advantage Subscription model

Sage Pastel • Perpetual License vs Pastel Advantage Subscription model

Pastel Perpetual or Pastel Advantage?

Pastel Advantage Subscriptio

What is the difference?

Perpetual Licensing - (Applies to Pastel V4 through V12)

A perpetual software license is a type of software license that authorizes an individual to use a program indefinitely. Generally, outside of termination, a perpetual software license allows the holder to use a specific version of a given software program continually with payment of a single fee.
Along with a perpetual software license, the vendor typically provides a technical support period of one to three years. During this initial period, the vendor also provides software updates often. However, updates may or may not be provided for free in perpetuity.
With perpetual software licensing, a customer pays an upfront charge for the software license as well as a limited supplemental support period during which additional benefits are included. After the support period ends, the customer has the option of continuing to use the current version of the software without additional support or paying a lower-cost fee to resubscribe for support and upgrades.
Use of perpetual software licensing is declining as subscription-based licensing increases in popularity. This increase may be in part a result of perpetual software licensing’s high initial cost. At the same time, however, it can be hard for the software vendor to ensure profitability in perpetual software licensing because of the uncertain term of licensing and unforeseeable future development costs.

Pros

You get to use the same Pastel package that you bought years ago, without upgrading it, and saving on annual fees.

Cons

At some point, all application software is going to become un-usable, as the operating systems constantly change.
This means that when your Sage Pastel product comes to end of life, you will need to buy a brand new package (the latest version) again.

Subscription Based Licensing - Pastel Advantage (Applies to Pastel V14 onwards)

Subscription-based pricing is increasingly being used for cloud computing. In a subscription-based model, cloud customers typically pay upfront, prior to receiving access to cloud services. Prices are often based on the subscription's length and a longer subscription often translates to a lower cost. A subscription-based model can cause customers to overpay for services.
Cloud customers that use significant resources can benefit from a subscription-based model, however if a customer only uses a small amount of computing resources, a subscription-based pricing model may not be ideal. Some cloud providers offer a subscription-based model that can adjust to reflect actual usage.
Subscription pricing terms are documented in the provider's service-level agreement (SLA).

Cons

Sage Pastel no longer offers the perpetual option when you buy a new package. Your Pastel will stop working on the renewal date if you have not paid your invoice. Along the same manner that a lot of software companies are working to keep repeat business coming in, with the likes of Office 365, so will your Pastel stop working.
You will be required to sign a SLA agreement.

Pro's

Annual licenses are a cost effective way to run your business and to ensure your software is always up to date and tax compliant. As an Annual license customer you will receive all the latest upgrades, updates and tax tables for the remainder of your license period. To continue accessing your software after 12 months, simply renew your annual license.

Why are Service Level Agreements important?

Service providers need SLAs to help them manage customer expectations and define the circumstances under which they are not liable for outages or performance issues. Customers can also benefit from SLAs in that they describe the performance characteristics of the service, which can be compared with other vendors' SLAs, and also set forth the means for redressing service issues -- via service credits, for example.

For a service provider, the SLA is typically one of two foundational agreements it has with customers. Many service providers establish a master services agreement to establish the general terms and conditions in which they will work with customers. The SLA is often incorporated by reference into the service provider's master services agreement. Between the two service contracts, the SLA adds greater specificity regarding the services provided and the metrics that will be used to measure their performance.

What goes into an SLA?

In broad terms, an SLA will typically include a statement of objectives, a list of the services to be covered by the agreement and will also define the responsibilities of the service provider and customer under the SLA.

The customer, for example, will be responsible for making a representative available to resolve issues with the service provider in connection with the SLA. The service provider will be responsible for meeting the level of service as defined by the SLA. The service provider's performance is judged according to a set of metrics. Response time and resolution time are among the key metrics included in an SLA, since they relate to how the service provider deals with a service interruption.

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