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Rent vs. Own: The Software Cost Reality

A 10-year financial analysis of the shift from perpetual licenses to subscription models for Adobe and Microsoft products.

📅 10-Year Projection 📊 Data-Driven

1. The Adobe Equation

Adobe Photoshop shifted from a $699 one-time purchase (CS6) to a monthly subscription model. While the entry price is lower ($22.99/mo), the long-term cost accumulation is steep.

Perpetual Cost (Fixed)

$699

One-time payment

10-Year Sub Cost

$2,759

Standard Plan ($22.99/mo)

Break-Even Point

2.5 Years

Time until subscription costs more than owning.

Cumulative Cost Over Time

Comparing the old CS6 purchase vs. Standard & Photography plans.

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The "Photography Plan" Exception: At $9.99/mo, the Photography Plan extends the break-even point to nearly 6 years, making it the most viable option for long-term users.

2. The Microsoft Dilemma

Microsoft Office offers a clear choice: Buy Office 2021 for $150 or rent Microsoft 365 for $70/year. The subscription includes 1TB cloud storage, which complicates the value proposition.

Office Cost Projection

Subscription ($69.99/yr) vs One-Time ($149.99).

The 2.2 Year Wall

If you only need Word and Excel on a single computer, the subscription model stops making financial sense after just 26 months.

However, the standalone license is restrictive. It covers only 1 PC and lacks the 1TB OneDrive storage included with the subscription.

360%
10-Year Cost Increase
$550
Lost Savings (10 Yrs)

The "Subscriber's Tax"

Comparing the total cost of ownership over a decade. The bar chart below illustrates the premium paid for "access" versus "ownership."

Ownership Win

Staying on CS6 would have saved a user over $2,000 over the last decade.

Hidden Value

If you value 1TB cloud storage at $5/mo ($60/yr), the Microsoft subscription effectively pays for itself.

What Are You Paying For?

It's not just about the software. Subscriptions bundle services that perpetual licenses lack.

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Device Access

Perpetual: 1 PC/Mac only.

vs

Subscription: Up to 5 Devices simultaneous (Mobile + Desktop).

Cloud Storage

Perpetual: None (Local only).

vs

Subscription: 1TB (Microsoft) or 20GB-100GB (Adobe) included.

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Updates & Features

Perpetual: Frozen in time. Security patches only.

vs

Subscription: Instant access to new AI features (e.g., Generative Fill).