Difference between revisions of "Periodic Payment License"

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