Why Software Subscriptions are bad

Why Software Subscriptions are bad

Feb 23, 2024

In recent years, the software industry has seen a significant shift towards subscription-based models. From creative tools to productivity suites, more and more software companies are opting for subscription plans over one-time purchases (perpetual license). While these models offer certain benefits for both consumers and businesses, they also come with a host of drawbacks and in my opinion are just plain evil.

In the past most software was sold as a perpetual license. A license which grants you to right to use the software indefinitely after a one-time purchase with an offer for limited time support.

Software companies would bring out new version every x years where as a user you had the choice to either keep using what you have or upgrade (with additional costs) to a new version. This model worked for years and I still think this is the model that software should be sold to.

When you buy a computer, the software you install on your computer should always work. Compare it to a house (computer) and the what you have in the house (software) like furniture, television. Let's use the example of the television.

It makes no sense to pay a monthly fee to use the television. After I have a television, I could get a subscription for additional services (like cable, Netflix) but these are optional and things that I consume. If I use my television only to watch my bluray movies or play Xbox games, I could easily do this and as long as I am happy with my television, there would be no need to upgrade it to the latest 8K version.

I am not against subscriptions, but subscriptions should be something you consume or in other words, services that require extra resources from the delivery company to create/generate them.

A software company can provide subscriptions for additional services, which for example could include cloud based tools to enhance the software, (good example is the generative fill in Adobe) or extra (personal) support.

It could also include additional resources not affecting the features of the software (for example stickers, stock footage). This is also where things get blurry with subscriptions, as some companies disable existing features unless you get a subscription to unlock them.

It is like you buy an 8K television but have to get a subscription to actually view in 8K (without subscription it is limited to HD). This is pure evil and is nothing else than milking the cow.

Software companies have worked with a perpetual licensing models for years and it has paid off handsomely for them. Introducing the subscription model is just their way of saying: we love money more than our product.

Here are couple of reasons why we should not support the subscription model:

1. Not Future proof

Software should always work for the system they were built for, even if the software company does not exist anymore. There are many cases where we can still access business critical data from decades ago.

2. Connectivity

The phone home features of subscription models require you to have an internet connection, meaning software will no longer work when you are in an area without connectivity or for what ever reason, connectivity fails.

3. Privacy

The constant connectivity also introduces privacy concerns. It often entails sharing sensitive data and information with service providers. While reputable companies implement robust security measures to protect user data, there's always a risk of data breaches or unauthorised access. Additionally, some subscription-based software may collect user data for marketing or analytics purposes and even sell this to other providers

4. Dependency on provider

The provider can decide to discontinue the software altogether (I am looking at you google). In such scenarios, users are left with limited options and may need to hastily find alternatives, potentially disrupting their workflow and productivity.

5. Pricing

Once you are in the eco system, you have no longer control of your costs. There will be a price creep on the product and there is no longer an easy way out. Over time new tiered pricing structures will be introduced that require users to pay more for additional features or usage. The company has become a drugs dealer, once you have no place to go, they can start increasing prices. This is one of the main reason why I feel the subscription model is evil.

6. Cancellation

Many subscription-based services make it deliberately difficult for users to cancel their subscriptions. This could involve navigating through convoluted cancellation processes, facing hefty cancellation fees, or being subjected to aggressive retention tactics aimed at persuading users to reconsider.

7. Forced upgrades

With subscription based software you are forced to upgrade which at some point even forces you to upgrade your device. Even if you would be able to run older subscription software (on older computers), you are now paying for features you cannot use.

8. Offers to hook you

To enhance the appeal of the subscription model, supplementary offers such as cloud storage or cloud editing are included, strategically designed to entice users to become entrenched within the ecosystem.

Software itself is a tool you use regularly and should not require a subscription to use it. Subscriptions only make sense if they offer consumables (for the tool).

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