Perhaps LLM's will force developers/companies to change their stance and to stop users from recreating what they have already created, just buy an at-a-time snapshot of their app for a one-time-fee? Probably not but one can hope.
Instead, the reverse has happened and platform churn has risen to new highs, necessitating subscriptions.
Eg in desktop OS's. Apple for example makes everyone miserable by re-breaking macOS every year. To what point?
Part will be for new features, but no doubt that another big part will be for platform support over time. There's just too little backwards compatibility guarantees nowadays from the big players. We need more Microsofts in that sense!
... Even for desktop Linux users? I can't say I've felt it. I switched almost 4 years ago and it just keeps feeling better and better (in a "Luigi wins by doing nothing" kind of way).
But everyone wants us to pay $10/mo. It just isn't sustainable from a consumer perspective.
And so few actually deliver $10/mo worth of value. If 1password and Fastmail - the two most important services that control my digital life - are each $60/year, that's the standard of value other SaaS companies have to beat and very few do. The ones that do are like NextDNS where they cost $20-30 per year because the people running them aren't greedy lemmings trying to pay back VC.
Funny you mention Fastmail. I was happy most of the past decade until this week. I just had my email blown up by their new Paddle billing system with a ton of billing invoices since they decided it was no longer ok that I pay them a lump sump every 2 years, and that I must go onto monthly now. Initially I thought they were hacked but nope, just terrible communication.
I emailed them a few days ago and they only confirmed that Paddle is their merchant of record and they have been migrating accounts over slowly.
Tonight the CEO sent out a blast saying resellers need to be on monthly billing with their new system at new pricing.
Sorry Fastmail, I paid for 2 years back in October (I think this is my 3rd cycle with them). If you want me on monthly billing then you will wait until October 2027. That is a ‘you’ problem not a ‘me’ problem if you undersold the subscription this cycle.
Of course it isn't. Just because some products or services are great value, doesn't make other products bad value. They can be anything from good value, to average value to low value.
And products / services are of course not comparable just because they are subscription based, or used on a digital device.
Gas has a fantastic value, one liter can transport me and my things a long way in short time. So does that mean that I can never buy a bottle of wine or some coffee outside of my home? They are after all liquids, and neither coffee nor wine can compare with the great value of gas.
The BIG difference is that we didn't felt entitled to use everything that is fashionable or switch apps every couple of months.
We would do a research across several magazines, local computer clubs, and the few lucky ones that had online access, some BBS or Usenet groups, then buy that one package and live with it for a couple of years, regardless of their limitations.
The code is the easy part but there's ongoing humans needed to make it work. If Agents get to the point they can genuinely autonomously SRE & patch a service everything changes but that still seems a long way off.
How would the economics of this work universally? Jetbrains is a bit of an oddity in terms of SaaS. For the most part, it's desktop or on-premises software that was sold with a perpetual license. If you've bought a subscription and canceled, they've generated some revenue. Maintaining a subscription generates more revenue for them, but they can slow or stop development without stopping you from using the product.
SaaS is typically some server software hosted by someone else which most often doesn't have an on-premises version. They can stop making feature updates, but if they turn off the servers, the service ends. They still have costs even if you use the software less. You can argue about the profit margins, but that's not the point here. As most SaaS companies don't start with on-premises, they can't ever get their software working there for many reasons. There are a few like Atlassian and GitHub that do both, but if you look at the heritage, both are really on-premises first.
But that might require just firing some people because that amount of man-hours is not needed any more or moving them to make something new and no investor likes it
For $40 product, I will rather pay $1/month than $40 once. It keeps the incentive aligned. I think most people just assume that if the devs move away from subscription they would be fine with lower revenue and would charge less.
Does the software stop working after the 2 years? If so, I’d go subscription (or find another product that doesn’t explode). If it doesn’t, I’d pay the $400 assuming I want to use it for more than 2 years.
> So let's say average subscription time
It could be anything from month to decades depending on the subscription. And the price should be accordingly (risk based)adjusted for the same revenue.