Typically, there are two ways to purchase CMMS software. You can subscribe annually or own the software outright.
CMMS subscription pricing is also known as Software as a Service, or “SaaS.” When you opt for SaaS, you’re renting the software for a monthly or yearly fee.
Or, you can choose to purchase a license to use the software (in practical terms, forever) for a one-time fee.
Subscription vs. License for CMMS
So, what are the advantages of a software subscription vs. a license? Let’s find out.
CMMS Software Subscription
When you opt for a SaaS subscription, you’re choosing to rent software for a specified period of time instead of buying a license to use it indefinitely. If you fail to renew your subscription, the software stops working.
Advantages of SaaS
- Easier on cash flow up front and over the first 2-3 years
- May be able to purchase it without a formal procurement process (i.e., you’re just signing up for a service)
- You can try the product and the vendor without fully committing
Disadvantages of SaaS
- Higher total cost over the long term
- Vulnerability to price increases
- You never own the software
- Stop paying and you lose access
CMMS Licensed Purchase
You’re probably more familiar with the licensed purchase option as the traditional way to buy software. You buy your CMMS licenses once and can use them indefinitely until it’s time to upgrade or replace the software.
Advantages of Licensed Purchase
- Less expensive over the long run than the never-ending subscription. Usually it’s a 2-3 year break even vs. SaaS CMMS pricing.
- You own it. If your company’s budget gets tight one year and you don’t get your yearly allotment, you will still be able to use your software because you own the software license.
Disadvantage of Licensed Purchase
- Higher upfront CMMS software costs
Other Important Considerations
Typically, you can also purchase or renew a yearly maintenance agreement with either option that includes software updates, tech support, hosting services, and access to training.
If you’re leaning toward an SaaS model, ask vendors if you can switch to a license purchase model if your situation changes.
CMMS system pricing can vary widely. Here at MPulse, we believe every customer should have an option that works for their situation. We also can help with financing options. If you’re looking for a way to purchase CMMS software outright, take a look at our new MPulse 0% Finance Program.
Still have questions? Contact us. We’re here to help.