I write civil engineering software [0] and am familiar with this kind of dongle. Yes, even today there are users who want this kind of dongle instead of, say, cloud-based validation. They feel secure only if they have something tangible in hand. Since we sold (and still sell) perpetual licenses, it becomes a problem when a dongle breaks and replacement parts are no longer available. Not all users want to upgrade. Als…
The problem seems the sales model rather than the dongle: 1) a hardware and software solution implies that hardware will stop working at some point. Customers should understand it 2) you could sell them a new dongle every time support contract ends which is what I’ve experienced with Xways as an example. Even if you’re air gapped once a year usage data upload and new dongle seems fine. 3) why should users receive fre…
Which is not uncommon.
It’s also one that is typically pretty good for customers that like to do an investment and then continue to reap benefits from it. The capitalization model.
The ‘lease’ model (SaaS) is good for customers with highly variable licensing/software needs or that expect extremely high turnover, and prefer to see these costs as, essentially ‘cost of production’. The cash flow model. It does require a lot of trust, however, that when the lease comes up for renewal the fees won’t be usurious.
Neither is necessarily wrong. A whole lot of folks are starting to realize the downsides of expenses coming out of cashflow though! And losing a lot of trust.