Periodic Payment License: Difference between revisions

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[[DEC]]s '''Periodic Payment License''' (PPL) was a kind of software leasing system, which was introduced about 1987.
The '''Periodic Payment License''' (PPL) from [[Digital Equipment Corporation|DEC]] was a kind of software leasing system, which was introduced about 1987.


Instead of buying a relatively expensive traditional '''Paid-Up''' license (with unlimited validity), you could start with a one-time '''Initial License Charge''' and monthly '''Periodic Payment License''' (PPL) fees.
Instead of buying a relatively expensive traditional '''Paid-Up''' license (with unlimited validity), one could start with a one-time '''Initial License Charge''' and monthly '''Periodic Payment License''' (PPL) fees.


Which of the two options leads to lower overall costs depends on the period of use.
Which of the two options leads to lower overall costs depends on the period of use. Let's have a look at an example:
 
Let's have a look at an example:
   
   
  Q2001-1P [[VAX 8550]] [[VMS]] INITIAL LICENSE FEE                      1  x 3,150 =  3,150  
  Q2001-1P [[VAX 8550]] [[VMS]] INITIAL LICENSE FEE                      1  x 3,150 =  3,150  

Latest revision as of 23:08, 13 November 2025

The Periodic Payment License (PPL) from DEC was a kind of software leasing system, which was introduced about 1987.

Instead of buying a relatively expensive traditional Paid-Up license (with unlimited validity), one could start with a one-time Initial License Charge and monthly Periodic Payment License (PPL) fees.

Which of the two options leads to lower overall costs depends on the period of use. Let's have a look at an example:

Q2001-1P VAX 8550 VMS INITIAL LICENSE FEE                       1  x 3,150 =  3,150 
Q2001-JP VAX 8550 VMS MONTHLY PERIODIC PAYMENT LICENSE FEE      41 x 1,134 = 46,494
                                                                     Total = 49,644 

Q2001-UZ VMS PAID-UP LICENSE                                                 49,875

The break-even point is reached after 41 months (three years and five months) of use, from then on the "perpetual" license is cheaper, with depreciation and interest not taken into account.