3‑Year TCO: Subscription vs Perpetual Licence for Accounting Software (Singapore SMEs)

Thinking about switching systems or renewing your plan? Don’t compare price tags—compare TCO. Here’s a clear, Singapore‑focused guide that explains what TCO is, what to include, and how subscription (SaaS) stacks up against perpetual (on‑prem) licences such as ABSS/MYOB and SQL Account.

What is TCO?

Total Cost of Ownership (TCO) is the all‑in cost of running your software over a period (here: 3 years). It includes everything you pay—upfront and ongoing—plus the hidden costs of time and downtime.

Simple formula:3‑Year TCO = Licences/Subscriptions + Implementation/Training + Support & Upgrades + Hardware/Hosting + Security/Backups + Add‑ons/Integrations + Admin Time + (Optional) Downtime/Changeover Costs − Eligible Grants

What to include in your 3‑Year TCO (Checklist)

• Licences / Subscriptions (users, modules)

• Implementation & Training (setup, templates, SOPs)

• Support & Upgrades (annual maintenance or included in subscription)

• Hardware / Hosting (server PC, Windows VM, or managed hosting)

• Remote Access (Remote Desktop solutions, VPN, SSL)

• Security & Backups (antivirus, 3‑2‑1 backups, storage)

• Add‑ons / Integrations (e‑commerce, POS, InvoiceNow, reporting)

• Admin Time (hours your team spends maintaining the system)

• Exit / Migration (if you plan to switch later)

• Grants (e.g., PSG‑supported packages—check eligibility)

Subscription (SaaS) vs Perpetual (On‑Prem): Quick Comparison

Company scope: On‑prem (ABSS/MYOB, SQL) lets you create up to 5 company databases under your licence. Subscription (SaaS) plans typically cover 1 company per subscription.

Simple Price Example (SGD)

Option A — Subscription (SaaS)

• Full package (unlimited users, 1 company) including setup, training & support: $5,336 one‑time

• Subsequent renewal: $65/month (additional support, if needed, may incur charges)

Option B — On‑Prem (ABSS/MYOB or SQL Account)

• Full package (3 users), create up to 5 company databases: $4,500 – $7,500 one‑time

• Renewal support: $700/year

• Note: Remote access licences or optional hosting, if required, are separate from the above.

• Full package (3 users): $4,500 – $7,500 one‑time

• Renewal support: $700/year

• Note: Remote access licences or optional hosting, if required, are separate from the above.

Decision Triggers (Pick Your Lane)

• Inventory‑heavy workflows? Favour robust on‑prem controls (SQL Account), or ensure cloud can handle multi‑warehouse and approvals.

• Zero tolerance for downtime? On‑prem with LAN access ensures business continuity during ISP issues.

• Need low monthly cash outlay? Subscription keeps upfronts low; revisit at renewal.

• Data sovereignty / exit plan important? Perpetual wins—take your database anytime.

• Team is fully remote, light transactions? Subscription may be simplest.

Quick Recap

• TCO = all costs across 3 years, not just licence price.

• Subscription = pay monthly, cloud‑hosted, easy start; confirm data export rights.

• Perpetual (ABSS/MYOB, SQL) = own the licence and database; on‑prem speed; optional cloud hosting (fees apply).

• For inventory‑heavy SMEs or those who want ownership and an offline safety net, perpetual often wins on TCO.

Need a 10‑minute TCO check for your setup? Send user count, modules, and preferred deployment (on‑prem, RDP, or hosted) and we’ll sketch your numbers.