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by clement_b 1415 days ago
Yes, subscriptions for everything isn't good for consumers, but, if it was 'easy' to sell software as a one off before the cloud, it's a bit harder now with all the costs associated with cloud features such as everlasting storage, security, sync, compute, you name it. How do you sell something that consumes resources continuously at a one-off cost?

SaaS can only work with a continuous revenue stream because the software provider has to keep delivering the service, and doesn't know how long it will be necessary to do so. LTV predictions are based on the assumption that customers churn, but what if they don't? If you charge the LTV as a one off but got that wrong, you're out of business.

With proper software, that you install on your device, you power everything, therefore one off licences can work.

There is also the whole way to ship software that has to change for a shift away from subscription, but are consumers ready to wait for yearly releases and pay for these ? Are consumers ready to install software again? Not so sure!

2 comments

Yeah, please let me install software. No, I don't need your cloud.
I agree yet see the challenges too. What OS do you have? How often does it break compatibility? Once product is mature and market saturated how can business continue to exist?
A lot of the cloud stuff can be offloaded to cloud providers. It’s pretty common for apps to let you choose between local storage, iCloud, Dropbox, et al. And for compute, well, the software runs on computers?

If you need more server side action than that, I think you’re selling a service in addition to your app, and then yes, you need subscription revenue.

Often it’s bad idea though, I doubt you’d find many people who prefer Photoshop “cloud” to old-school Photoshop-on-a-Computer.