Why Should the Software Customization Industry Develop a Software Subscription Model?

This article highlights the widespread challenges faced by domestic public institutions and non-internet enterprises in China, including poor software quality, numerous vulnerabilities, and a lack of ongoing maintenance. The root cause lies in the perpetual license procurement model, which weakens the vendor's responsibility after delivery, leading to significant technical debt. The article advocates for a shift toward software subscription models (SaaS), where usage rights and services are purchased based on time and volume, rather than acquiring source code through a one-time purchase. A case study comparing a university's academic administration system demonstrates that the subscription model ensures 99% system availability, with the vendor's professional team responsible for monitoring, iteration, and bug fixes, thereby completely relieving the client of operational burdens and risks. From a cost perspective, although annual fees for subscriptions may appear higher, this model avoids the substantial losses and additional labor costs associated with software defects under the perpetual license model. Furthermore, service providers are incentivized to retain customers by adopting advanced technologies such as DevOps to reduce marginal costs. Additionally, flexible pricing based on daily or per-user usage lowers the barrier to trial for clients, as evidenced by the successful transition of Microsoft Office 365. Despite concerns regarding data localization and asset reporting, the subscription model is becoming the mainstream direction for improving overall IT service quality due to its clear division of responsibilities, high service quality, and alignment with future industry trends.