Comparing Perpetual License vs. Subscription for Deployment

SAP Business One helps its users keep business simple. Through innovative technology that brings cohesion and clarity, the companies that embrace it immediately see the benefits of an ERP system.


On top of business benefits, another of the advantages of implementing SAP Business One is flexibility. Multiple deployment options exist for those interested, but there are two key concerns: infrastructure and licensing.


Infrastructure: On-Premises vs. Cloud


The first question we ask potential SAP Business One customers looking to streamline operational processes is whether they want to be on-premises or in the cloud.


Each option is self-explanatory. With an on-premises approach, both the software and housing of it are on the business. Upon purchase, a company owns the equipment and handles all of the infrastructure upkeep.


When SAP Business One customers choose the cloud, however, everything from the services to infrastructure upkeep is part of a portfolio. And one of the benefits of an ERP system is that a provider like Consultare provides that portfolio of services to its cloud customers.


Each option has its own benefits. In the end, it comes down to the preferences and requirements of the company.


Licensing: Subscription vs. Perpetual


When it comes to licensing, the options also relate to the company objectives, CAPEX versus OPEX, and the level of ownership the company prefers.


SAP Business One implementation comes with a pair of payment options:



Subscription services offer multi-tenant cloud hosting that is convenient to install and use. These systems typically provide all servers, storage, and management of the infrastructure. With an ERP subscription, users appreciate getting updates, patches, and other changes quickly and efficiently. The payment structure allows businesses to implement these systems with little initial investment while providing access to customer services, upgrades whenever they become available, and IT infrastructure.


That said, the costs can be significantly higher when you view them in terms of paying a single upfront fee (as with perpetual licensing). The costs of subscription licensing services need to be budgeted into monthly expenses as they never go away. Given that people are essentially “renting” these licenses, they continue to access the products and services as long as they continue to pay their subscriptions. This is a very different payment structure than on-premises implementations because subscription licensing is an operational expense.



Many people prefer on-premises or single-tenant cloud solutions for their businesses. Unlike subscription licensing options, these products are purchased once and require no monthly subscription fees. Perpetual licensing could be installed in either an on-premises environment or a private cloud. This licensing system is incredibly flexible because you could have perpetual licensing on a private, cloud-hosted system.


Perpetual licensing requires a bigger upfront investment instead of a monthly fee for the service. Perpetual is a capital expense in which you aren’t provided instant access to updates, corrections, and patches. With perpetual licensing, you also need to pay for your annual support and maintenance. Your partner has the team to maintain and support the system.


When determining which option is best for you, you must look at your particular needs and budget. SAP Business One offers both perpetual or subscription licensing solutions as well as on-premises, multi-tenant, or private cloud solution options — and the Consultare team can help you get started quickly with any of these options.


Want to learn more about your deployment options?

Visit us at Consultare for additional info and the chance to watch a demo.

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