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The True Cost of Cloud: A 5-Year TCO Analysis (Subscription vs. Perpetual)

  • Writer: Agnes Lee
    Agnes Lee
  • Dec 22, 2025
  • 3 min read

Are You Renting Your Business’s "Brain"?


In 2025, it feels like everything is a subscription. You subscribe to watch movies, listen to music, and even to turn on the heated seats in your car. But when it comes to your Accounting Software—the financial "brain" of your business—does the "subscribe to everything" model actually make sense?

At Apscom Solutions, we ran the numbers. While Cloud Subscriptions look cheap on Day 1, the 5-Year Total Cost of Ownership (TCO) tells a very different story.


The "Iceberg" of Subscription Costs


Cloud software sales pitches usually focus on the "Low Entry Price." They tell you: "It’s only $50 a month!"

But businesses don’t run for just one month. They run for years.

When you choose a Subscription (SaaS) model, you are signing up for:

  • Cumulative Costs: That monthly fee never stops. It pays for the software over and over again.

  • The "Price Hike" Risk: Vendor raises the price by 20% next year? You have no choice but to pay or lose your data.

  • Storage Fees: As your data grows, many cloud providers quietly bump you into a more expensive tier.


The 5-Year TCO Showdown: A Hypothetical Analysis


Let’s compare two businesses.

Business A chooses a pure Cloud Subscription.

Business B chooses a Perpetual License (like ABSS or SQL Account) from Apscom.

Timeline

Business A (Cloud Subscription)

Business B (Perpetual License)

Year 1

$3,000 (Software +Setup Looks cheap!)

$4,500 (Software + Setup)

Year 2

$700

$700 (Support/Maintenance)

Year 3

$850 (Price hiked)

$700

Year 4

$1,000 (Tier upgrade)

$700

Year 5

$1,200

$700

TOTAL

$6,750

$7,300

Wait, they look similar?

Look closer at Year 6.

  • Business A must pay another $1,200 (or more) to keep their lights on.

  • Business B owns the asset. If times are tough, they can choose to skip the maintenance fee and still keep using the software.

The Break-Even Point: This usually happens between Year 3 and Year 4. After that, the Perpetual model becomes pure savings.


The Myth: "I Need a Subscription to Work from Home"


The biggest lie in the industry is that you need to pay monthly rent to access your data remotely. This is false.

You can buy a Perpetual License (One-Time Cost) and still enable remote access. Here is how we do it at Apscom:


1. For SQL Account: The Hybrid Database


SQL Account is designed with flexibility in mind. You buy the license once, but you choose where the "brain" lives:

  • Private Cloud (Apscom Data Center): We host it for you. You get full remote access and daily backups for a small hosting fee, but you still own the software license.

  • Own Hosting (On-Premise): You host the database on your own office server. No monthly hosting fees. You control the hardware.


2. For ABSS (MYOB): The Remote Desktop Solution


Love ABSS but need to work from home? You don't need to switch software.

  • Remote Desktop (RDP): We can help you set up a Remote Desktop solution. This allows you to securely log in to your office computer from your laptop at home.

  • It is like having a "long cable" connecting your home screen to your office PC. You get the stability of a desktop application with the freedom of remote work.

The Bottom Line: You get the connectivity of the Cloud, but you aren't forced into a "rent-forever" contract.


3 Reasons Why "Owning" Wins


1. You Control the Data (No "Data Hostage" Situations)

With a subscription, if you stop paying, you lose access to your historical data. You are essentially locked out of your own house. With a Perpetual License, that data is yours. Forever.


2. You Decide When to Upgrade

Cloud software updates automatically, sometimes changing the interface right during your busiest audit period. With Perpetual software, you decide when to run the update. You maintain control over your workflow stability.


3. It’s a Business Asset, Not an Expense

A perpetual license is a capital asset. It adds value to your company’s valuation. A subscription is just an operating expense—money that leaves the bank and never comes back.


Stop Renting. Start Owning.

Looking for a software solution that belongs to you?

Contact Apscom Solutions today to discuss our Perpetual License packages with Remote Capabilities.



 
 
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