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Software license management: a guide for small IT teams
Keep a software license register that survives renewals: the records a small IT team needs, who owns each one,...
Quick answer
A perpetual license is a one-time purchase that lets you keep using a specific version of software indefinitely, under the license terms. It does not include future versions, and support usually ends on a fixed date. A subscription grants access only while you keep paying, with updates included.
A perpetual license lets you keep using a specific version of a piece of software indefinitely after paying for it once. You buy version 2024, and you can run version 2024 for as long as your hardware and operating system support it, subject to the license terms.
What you do not get is everything that comes after. New major versions, new features, and often ongoing technical support are not part of the original purchase. Those typically require a new license, an upgrade fee, or a separate maintenance plan.
A subscription, by contrast, grants access for as long as you keep paying. Updates are usually included, and access typically ends when payments stop.
What a perpetual license includes, and what it does not
| Included | Usually not included |
|---|---|
| The right to use the purchased version indefinitely | Future major versions |
| Security fixes for that version while it is supported | New features after release |
| The number of installations or users stated in the license | Support after the vendor's support end date |
| Transfer to another company or person, unless the terms allow it |
The word "perpetual" describes the right to use, not the vendor's support. That distinction is where most problems start.
A real example: Office LTSC 2024
Microsoft's volume-licensed Office LTSC 2024 is a useful illustration. According to Microsoft's Office LTSC 2024 overview, it is available to organizations through volume licensing, it does not receive feature updates after launch, and it gets five years of mainstream support with no extended support afterwards. The Microsoft lifecycle page for Office LTSC 2024 lists the mainstream support end date as October 10, 2029.
Microsoft positions its Microsoft 365 subscription plans as the way to receive new features on an ongoing basis. Office LTSC 2024 itself will not change after launch. That is the perpetual trade-off in one product: pay once, keep the version, and plan for the day support ends.
Perpetual vs subscription licenses
| Perpetual license | Subscription | |
|---|---|---|
| Payment | One upfront purchase, sometimes plus annual maintenance | Recurring monthly or annual fee |
| Access if you stop paying | Keep using the version you bought | Access usually ends |
| New versions and features | Buy an upgrade or new license | Usually included |
| Support | Until the vendor's support end date, or while maintenance is paid | Usually included while subscribed |
| Budgeting | Large one-time cost, then low | Predictable ongoing cost |
| Main risk | Running unsupported software after support ends | Cost that never stops, and loss of access if you stop paying |
Neither model is better in general. A perpetual license suits software that must stay on a fixed version, such as tools tied to certified equipment or regulated workflows. A subscription suits software that changes often or depends on cloud services. How a perpetual purchase is treated in the accounts, as a capitalized asset or an expense, depends on your accounting policy and thresholds, so confirm that with your accountant.
Many software vendors now sell mainly subscriptions, so buyers often meet perpetual licenses as legacy purchases rather than new choices. Those legacy licenses are the ones most easily forgotten.
The risks of perpetual licenses
- Silent end of support. Nothing stops working on the support end date. The software keeps running without security fixes, which can become a security and compliance problem long before anyone notices.
- Lost proof of purchase. Keys, invoices, and license certificates for a one-time purchase are easy to lose, which matters in an audit or when reinstalling on new hardware.
- Unclear installation counts. A license for five installations says nothing about which five computers currently use it.
- Maintenance plans that lapse. Some vendors sell annual maintenance on top of a perpetual license. If it lapses, upgrade rights may be lost.
Subscriptions announce themselves every month on an invoice. Perpetual licenses do not, which is why they need a deliberate record.
What to record for each perpetual license
| Field | Why it matters |
|---|---|
| Product and exact version | Support and compatibility depend on the version, not the product name |
| License type and agreement | Volume, retail, or OEM terms differ on transfer and installation |
| Quantity | How many installations or users the license covers |
| Purchase date and cost | Proof of ownership and input to any accounting treatment |
| Key, certificate, or invoice | Evidence needed for reinstallation and audits |
| Assigned devices or users | Shows where each installation is |
| Maintenance plan and renewal date | Protects upgrade rights |
| Support end date | The date to plan an upgrade or replacement |
Our software license management guide covers the wider register, including the recurring subscriptions that sit beside perpetual licenses.
How AssetCenter fits
AssetCenter's subscription records handle both models. A recurring subscription records its billing interval, cost, license quantity, and contract dates. A Lifetime Purchase, AssetCenter's term for a one-time purchase such as a perpetual license, records the purchase date, cost, and license count. Both sit in the same register as the devices they run on, and a to-do on the record can flag the support end date before it arrives.
The AssetCenter IT inventory page shows how software records, hardware, and assignments fit together. AssetCenter does not discover installed software or enforce license compliance on devices.
Frequently asked questions
Does a perpetual license expire?
The right to use the purchased version generally does not expire, subject to the license terms. Vendor support and security updates do end, usually on a published date.
Do perpetual licenses get updates?
Usually they get security and quality fixes for that version until support ends. New features and new major versions are generally not included.
Is a lifetime license the same as a perpetual license?
Usually, yes. Some vendors use "lifetime" to mean the lifetime of the product or the company, so read the terms before assuming indefinite use.
Can I transfer a perpetual license?
It depends on the license agreement. Some allow transfer between devices or organizations; others tie the license to the original purchaser or hardware.
Next step: find the perpetual licenses you already own
Search purchase records and invoices for one-time software purchases, then record each with its version, quantity, and support end date. Sort by support end date: anything ending in the next 12 months needs an upgrade or replacement plan now. Then extend the list into a full register using the software license management guide.
Founder & CEO, AssetCenter
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