Understanding the subscription model

4 minute read time.

What is a subscription model?

Subscription models are gaining a lot of popularity in the software industry. Though customers do not own their license with a subscription plan, it can be more cost effective than a traditional license because the software license is viewed as a lease or a rental. Many software companies such as SAP, Adobe and Microsoft have already implemented subscription models with more customers showing a preference to “renting” software as opposed to purchasing a perpetual license. This also reduces the cost to the software developer, as customers are always up to date with the latest version of the program. Feedback from their usage can improve functionality and fix issues through a continuous delivery method with minimal disruption to the customer.

Consumers love the subscription model because they run the show; if the buyer is unsatisfied with the product or service they can simply cancel the subscription. In addition, subscription pricing is attracting more customers because it makes it easier to use an expensive product without paying the full cost. The subscription model also significantly improves the customer experience since it connects them with the products and services that they need over a period of time.

 

Traditional vs Subscription Support Plan

Research has shown that customers that are on some type of support plan are generally more satisfied. A traditional plan is where a customer purchases the product and maintains full use of the product and data even if the support plan expires. With a subscription-based plan, the customer only has full access to the product and data as long as the subscription is active. In other words, if the subscription lapses or expires, the plan must be renewed within 20 days or the product goes into a “read-only” state. In read-only, you cannot add or modify data. However, the data is still viewable and can be used for reporting reasons only, until the plan is renewed.

                         

Sage Business Care Plans

Sage Business Care plans as of Release 2015.2

Plan

Features   and Benefits

Annual   Subscription

Best Value

  • Auto-renews   on the plan anniversary date
  • Product updates   for the duration of the agreement
  • Unlimited   support (phone, chat, email, online)
  • Access to   add-on services such as payroll, credit card processing, mobile sales and   more (additional fees apply)

Monthly   Subscription

Lower cost   than perpetual license

  • Auto-renews   on the plan anniversary date
  • Product   updates for the duration of the agreement
  • Unlimited   support (phone, chat, email, online)
  • Access to   add-on services such as payroll, credit card processing, mobile sales and   more (additional fees apply)

Traditional   Plan

Priced   higher than the subscription plans due to perpetual license

  • Auto-renews   on the plan anniversary date
  • Product   updates for the duration of the agreement
  • Unlimited   support (phone, chat, email, online)
  • Access to   add-on services such as payroll, credit card processing, mobile sales and   more (additional fees apply)

 

Subscription Model FAQ

 Where can I view my license information?

You can view this information in Sage 50.  click the System tab and look for the section that says Licensing Information.

You can also log into the Sage Customer Portal to view your license information. Once logged into the portal, click Activation Codes, and select Details. You will see a section titled Service Plan Details; this will show you the end date of your plan which is the day that the plan renews. While in the portal, you can update your credit card information before your renewal date to avoid a lapse in your subscription.

What if I want to cancel my subscription?

You may cancel your subscription up to 7 days before your monthly renewal date. You will have up to 20 days after that date to continue to use the software. During this time, Sage 50 will provide reminders that the expiration date has passed. After 20 days, the product will go into read-only mode. You may view existing information, but may not record new transactions.

What if my subscription lapses?

You can call (800) 336-1420 to reinstate your subscription any time before the end of the 20-day grace period.

Do I need Internet connectivity?

Sage 50 Accounting subscription service requires internet access at least once every 20 days to verify entitlement and ensure the product is up to date. Unfortunately, we are not able to offer the subscription service to customers without Internet connectivity.