Whether it’s an entertainment service, a meal kit delivery, or a monthly box of dog toys and treats, we all spend more each month on subscriptions—some of which we don’t necessarily need.
This issue isn’t limited to personal spending; companies may have software that they do not need or use anymore.
When purchasing software from Rockwell Automation, whether for design, analytics, data management, or industrial communications, you’re presented with two main types of licenses: perpetual and subscription.
So, which is better — and which one could turn into one of those forgotten monthly drains on your bank account?
At HESCO, as the only authorized distributor of Rockwell Automation in Connecticut, we provide support and guidance on Rockwell software.
Let’s walk through the two types of software licenses, their benefits, and how to manage them.
Rockwell Automation Software Licenses: What Are They?
Rockwell Automation’s software licenses are entitlements for customers to use Rockwell’s software, which range in usefulness from programming, design, troubleshooting, accessibility, security, connectivity, productivity, and more. The two main types of licenses available are perpetual and subscription.
Perpetual License
A perpetual license involves a larger upfront cost, but the license is owned permanently. If your company opts for a perpetual license, you retain ownership of the license indefinitely, regardless of who is using it.
Source: Dissolve
The software does not expire and can be used indefinitely.
Consider it like buying a car. You make a substantial initial payment, and the car is yours. You continue to pay insurance and taxes annually or monthly, but you own the vehicle.
Similarly, with a perpetual license, you make a significant upfront payment to own the software and pay for support as needed.
Benefits:
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- Long-term use
- Provides permanent software with no ongoing payments
- Advantageous for companies that can afford upfront costs to avoid recurring fees
Drawbacks:
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- Higher upfront costs
- The initial purchase includes support for the first year, but ongoing support and updates require an annual support contract.
Subscription License
But sometimes you don’t need that level of support that a perpetual license offers – or you believe something annually will be more effective for you because of your use case. Then, a subscription license may be a better fit.
A subscription license requires a lower initial cost, with an annual renewal subscription necessary to maintain access. If the subscription is not renewed, software access is lost. Support for the subscription license is bundled into the annual fee.
Think of it like leasing a car. You make an initial payment and must renew your lease at the end of the term agreement or else you lose “access” to your car.
A subscription is similar, requiring renewal to maintain service. This option is ideal for those who may not need the service long-term or prefer to reassess their software needs periodically.
Benefits:
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- Short-term use
- Looking for a smaller upfront cost
- Ongoing support and updates
- Suitable for companies with fluctuating team sizes
Drawbacks
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- Ongoing costs and continuous payments to maintain access
- Loss of access if the subscription is not renewed
Though both licenses offer similar characteristics, the cost difference is a significant factor. It’s important to consider price and weigh the benefits to align with your facility’s needs when deciding which license is best for you.
Managing and Tracking Licenses
Managing and tracking software licenses is crucial, especially for companies with changing staff. If you have a high turnover rate at your company or are hiring new staff, regularly tracking your licenses can help avoid unnecessary costs, such as paying for support on unused licenses or purchasing new licenses without checking existing ones.
Rockwell Automation offers tools to help manage licenses, including the TechConnect support contract, which helps track active and inactive licenses.
Proper management and tracking can prevent overpaying and ensure efficient use of resources.
Common Pitfalls and How to Avoid Them
Awareness of common pitfalls can maximize the utility of your software
- Overpaying: Ensure you freeze your perpetual license or unsubscribe from your software license that is no longer in use to avoid unnecessary charges. Stay up to date by checking in on your current licenses to manage costs effectively. You can do this through the portal or your local distributor.
- Repurchasing: Avoid repurchasing licenses by checking existing ones first. This can save significant money, especially if you have transferable perpetual licenses.
- Not Maintaining Records: Keep records of your software licenses and activation certificates to avoid confusion and ensure proper management.
These common pitfalls can be easily avoided with the help of organization and managing what you currently have. If you are involved in these licenses at all, it is important for you to regularly check in on what is currently obtained.
Next Steps: Manage and Track
Effective management and tracking of your licenses are essential to avoid overpaying or repurchasing.
If you are unsure of where to start your managing and tracking, contact us today! We can run a registered software report for your company to identify your current licenses.
Whether you need software for design, analytics, data management, or industrial communications, consider your budget and usage before making any purchases to ensure you choose the right license for your needs.