1 - Why is the subscription model becoming the standard in the software industry?
When a company wants to invest in SolidWorks, one question always comes up: should you choose a perpetual license or a subscription?
For a long time, software worked the same way: a company bought a license, installed the software on its computer, and used it for several years. This is known as the perpetual license model.
In practical terms, a company paid for the software once, then chose whether or not to renew annual maintenance to access updates and support. This model was the standard for a long time, especially for solutions such as SolidWorks.
However, today it aligns less and less with the reality of manufacturing businesses.
Organizations now have to manage:
- More flexible teams
- Interconnected software (ERP, CRM, PDM, etc.)
- Frequent and critical updates
Software no longer operates on its own. It is part of a complete ecosystem.
That is precisely why the subscription model has become the norm across the software industry.
For example, Microsoft no longer sells its Office suite as a traditional license: it has become Microsoft 365, a subscription service. And this transition now applies to almost all professional software.
With a traditional purchase model, each new version often involves a costly upgrade.
As a result : many companies remain stuck for years on older versions, sometimes incompatible with their other systems.
Conversely, a subscription provides access to a continuously evolving platform. Updates, fixes, and new features are rolled out progressively, without disruption or a complex migration project.
2 - Perpetual SolidWorks license: really cheaper… or a false good deal?
There is one point everyone agrees on:
YES, a perpetual SolidWorks license costs less… on paper.
Over a 5- to 10-year horizon, the purely accounting cost is generally lower than a subscription.
But does that mean it is the best choice for your company? Not necessarily.
In reality, as soon as you move beyond the simple theoretical calculation, the answer becomes much more nuanced.
Here are three real-world situations observed in manufacturing companies in Canada:
Real case 1: a company stuck on an old version
A trailer manufacturer is still using SolidWorks 2019 in 2026.
Why? Because its manufacturing ERP is itself on an older version.
Result:
- The customer pays for SolidWorks maintenance
- They cannot update their software because their ERP is on a 2023 version that is incompatible with SolidWorks 2026
The customer therefore pays annual fees without receiving any benefit
Real case 2: unused licenses that are expensive
A cooling systems manufacturer buys 4 SolidWorks licenses in 2020.
A few months later: a COVID-related slowdown, and only 2 licenses will actually be used during and after that period.
Result:
- Unused licenses that caused an inappropriate cash outflow
- These unused licenses will accumulate annual maintenance “debt” that will have to be paid one day
The customer incurred costs that were not suited to the changing conditions of today’s world
Real case 3: license rigidity and unexpected costs
A suspension systems manufacturer buys a SolidWorks Standard license.
A few months later, it wants to add a specific feature (simulation, rendering, etc.).
They are asked to pay an “upgrade fee” + higher annual maintenance to access that module.
Result:
The customer ultimately gives up on a feature they needed
- The customer must pay an upgrade fee if they want to move up the license, AND a “downgrade” fee if the module is no longer needed
These situations are not exceptions; they reflect issues faced by the majority of industrial companies.
Why?
- Because today, software such as SolidWorks no longer operates on its own (integration with an ERP, macro(s), production software)
- A company cannot accurately forecast its licensing needs 6, 12, or 24 months out
- It may need advanced features… but only temporarily
That is exactly where the subscription model makes perfect sense.
With 3DEXPERIENCE SolidWorks:
- Updates are automatic and continuous
- You can scale your licenses up and down
- You add or remove modules based on your actual needs
Result:
less rigidity, less waste, more flexibility.
3 - SolidWorks maintenance: saving today can cost you dearly tomorrow
This is probably one of the sentences I have heard most often in my career : “I’m going to stop maintenance to save money.”
On paper, the idea seems logical because you want to reduce the costs associated with your purchase.
And indeed, when a company buys a SolidWorks license, it is not required to renew annual maintenance.
But in reality, this decision is rarely as beneficial as it seems. Why?
Because SolidWorks maintenance does not really disappear,it is simply deferred… and accumulated.
Classic scenario (very common)
A company wants to buy SolidWorks while minimizing the costs incurred:
- It buys a SolidWorks license with 1 year of maintenance
- It stops maintenance after the first year
- It wants to get up to date again a few years later
Et c’est là que le problème apparaît…. because when you resume maintenance: You must pay for the unpaid years
In practical terms: 3 years without maintenance = 3 years to pay in one lump sum.
This is often more than $5,000 CAD for a single SolidWorks Standard license.
Two typical cases where this dilemma arises
A) The prospect who has not yet purchased SolidWorks
The first-time SolidWorks buyer often tries to invest the lowest possible amount.
But they completely underestimate:
- The future costs caused by stopping maintenance
- The rigidity of the model
- The impact on their technological evolution
Scenario of a prospect who buys their license, stops maintenance, then resumes it 3 years later
| Year 1 | Year 2 | Year 3 | Year 4 |
Product | Desktop Standard | Desktop Standard | Desktop Standard | Desktop Standard |
Scenario | Purchase | STOP maintenance | STOP maintenance | RESUME maintenance |
Floating license? | No | No | No | No |
Update? | Yes | No | No | Yes |
Update method? | Manual | Manual | Manual | Manual |
Technical support? | Yes | No | No | Yes |
PDM? | Yes | No | No | Yes |
CAM access? | Partial | No | No | No |
Cumulative total | $7,600.0 | $0.0 | $0.0 | $13,900.0 |
Scenario of a prospect who is subscribed for the full 4-year period
| Year 1 | Year 2 | Year 3 | Year 5 |
Product | Design Standard | Design Standard | Design Standard | Design Standard |
Floating license? | Yes | Yes | Yes | Yes |
Update? | Yes | Yes | Yes | Yes |
Update method? | Automatic | Automatic | Automatic | Automatic |
Technical support? | Yes | Yes | Yes | Yes |
PDM? | Yes | Yes | Yes | Yes |
CAM access? | Yes | Yes | Yes | Yes |
Cumulative total | $3,792.0 | $7,584.0 | $11,376.0 | $15,168.0 |
But this calculation tells only part of the story.
Let us now look beyond the price for our customer who is in the subscription scenario:
- They must pay a cash outlay 2 times higher than the subscription.
Issue: Some companies cannot afford to mismanage their cash flow.
- They will not have access to technical support for 3 years.
Issue: You may encounter bugs/irritants that will cost you at least 1 hour per month (which erodes the theoretical $26/month savings). An integrator such as Kotona Vision will help you resolve this much faster than on your own.
- They will not have access to 3DEXPERIENCE cloud features
Issue: They will therefore likely need to invest in a server or hardware (which is not free) and manage this data without PDM (leading to user conflicts and no version/revision history). These two points drive productivity losses and additional investment.
- They will not have access to AI features available only in 3DEXPERIENCE SolidWorks
Issue: They will therefore not have access to tools for automatic drawing generation, batch PDF/DXF conversion, batch printing of drawings…. These manual tasks can represent several hours each month (the $26 savings is heavily impacted here)
- They will not have access to CAM (computer-aided manufacturing) tools
Issue: The customer will therefore need to invest in a third-party tool such as Fusion 360 or a specific add-on, which will not be free.
This table adds up the total indirect costs and shows a very different reality from the $1,268 mentioned earlier.
| Each month |
Theoretical savings of perpetual vs subscription | $26 |
Draftsperson hourly rate | $30/hour |
Solving these issues yourself | -$15 |
No access to AI features | -$15 |
No access to PDM | -$15 |
Third-party CAM investment | -$20 |
Server investment | -$10 |
Total | -$49 |
In other words, if your subscription saves just one hour of productivity per month, it becomes profitable immediately.
A) The prospect who already has SolidWorks
Another textbook case is the customer who invested in SolidWorks some time ago and stopped these contracts. This customer wants to get up to date but must now pay the “fees they did not pay” for those annual maintenance renewals.
The following simulation uses the case of a customer:
- Who wants to update a SolidWorks Standard 2022 license
- Decides not to reinvest in maintenance for 3 years
This scenario will be compared with an update to 3DEXPERIENCE SolidWorks licenses. In this specific case, the customer benefits from special conditions
- No back-maintenance fees
- 50% discount for the first 3 years of subscription
- 25% lifetime discount on the subscription
You can also simulate the cost of your SolidWorks update here
Scenario of a customer who resumes maintenance and then stops it again over 4 years
| Year 1 | Year 2 | Year 3 | Year 4 |
Product | Desktop Standard | Desktop Standard | Desktop Standard | Desktop Standard |
Scenario | RESUME maintenance | Maintenance | Maintenance | Maintenance |
Floating | No | No | No | No |
Update | Yes | Yes | Yes | Yes |
Update method? | Manual | Manual | Manual | Manual |
Technical | Yes | Yes | Yes | Yes |
PDM? | Yes | Yes | Yes | Yes |
CAM | Partial | Partial | Partial | Partial |
Cumulative | $7,200.0 | $7,200.0 | $7,200.0 | $7,200.0 |
Scenario of a customer who gets up to date and stays on subscription for 4 years
| Year 1 | Year 2 | Year 3 | Year 5 |
Product | Design Standard | Design Standard | Design Standard | Design Standard |
Floating license? | Yes | Yes | Yes | Yes |
Update? | Yes | Yes | Yes | Yes |
Update method? | Automatic | Automatic | Automatic | Automatic |
Technical support? | Yes | Yes | Yes | Yes |
PDM? | Yes | Yes | Yes | Yes |
CAM access? | Yes | Yes | Yes | Yes |
Cumulative total | $1,896.0 | $3,792.0 | $5,688.0 | $8,438.0 |
We see a similar gap as earlier, namely $1,200. If we take the same indirect costs as earlier, namely
| Each month |
Theoretical savings of perpetual vs subscription | $26 |
Draftsperson hourly rate | $30/hour |
Solving these issues yourself | -$15 |
No access to AI features | -$15 |
No access to PDM | -$15 |
Third-party CAM investment | -$20 |
Server investment | -$10 |
Total | -$49 |
In other words, if your subscription saves just one hour of productivity per month, it becomes profitable immediately.
4) Conclusion
The choice between a perpetual license and a subscription should not be made by looking at price alone.
In reality, what makes the difference is your company’s ability to adapt, evolve, and avoid technical roadblocks over time.
A solution may seem more economical on paper, but quickly become restrictive as soon as your needs change.
Conversely, a more flexible model can deliver far more value over the long term.
The key is therefore to choose an approach that truly matches how you work today—and, above all, how you will work tomorrow.
Kotona Vision is here to help you make the right acquisition choice; to discuss it simply click here