By someone who remembers when you bought software once and actually owned it.
Once upon a time, buying software was straightforward. You walked into a shop (remember those?), picked up a shrink-wrapped box with a CD or floppy disks inside, paid once, and that was it. You owned it—bugs, quirks, and all. If you wanted an upgrade, you’d decide whether the new features were worth paying for. The relationship between you and the software maker was simple.
Fast forward to today, and the landscape has shifted dramatically. Increasingly, you no longer buy software—you rent it. And in some cases, you even rent your hardware. The subscription model has taken hold across computing, from Microsoft Office 365 and Adobe Creative Cloud to iPhone upgrade schemes and enterprise “devices as a service.”
This article explores why the subscription model has risen to prominence, how the public has reacted, and what might happen next. Spoiler: those shrink-wrapped software boxes aren’t coming back.
The subscription model isn’t new. Magazines and newspapers pioneered it centuries ago. What’s changed is its migration into computing. The shift started with software in the late 1990s and early 2000s, as the internet made distribution easier and cloud computing began to emerge.
One of the earliest large-scale pushes came from Salesforce, which launched in 1999 with a “Software as a Service” (SaaS) model. Instead of buying a copy of customer relationship management software, companies subscribed to Salesforce’s hosted platform. It was revolutionary: updates happened automatically, costs shifted from large capital expenditure to predictable operating expense, and access was possible from any internet-connected device.
The model proved so successful that other software makers followed suit. Microsoft, Adobe, and countless smaller companies moved from one-off purchases to subscriptions. Eventually, even hardware manufacturers realised that predictable revenue was attractive, leading to schemes where you don’t “own” your device—you lease it.
If you’re a technology company, the subscription model is a dream come true. Here’s why:
From a corporate perspective, it’s brilliant. Instead of persuading someone to pay once every few years, you get them to pay every month, indefinitely. It’s like moving from selling cars to running a taxi service—you make less upfront, but you never stop collecting fares.
Software is where the subscription model has made the biggest impact. The most famous example is Adobe. In 2013, Adobe stopped selling perpetual licences of its Creative Suite (Photoshop, Illustrator, Premiere Pro, etc.) and moved entirely to Creative Cloud subscriptions. At first, the public outcry was deafening. Photographers and designers didn’t want to rent their tools. Yet over time, the model stuck. Today, Adobe’s subscription revenue is enormous, and the company’s market value has soared.
Microsoft followed a similar path with Office 365 (now Microsoft 365). Instead of buying Office every few years, you pay a monthly or annual fee. In exchange, you always have the latest version, plus cloud storage and collaboration tools. For businesses, the predictability and cloud integration proved irresistible.
Even smaller software makers have jumped on the bandwagon. From password managers to VPNs to note-taking apps, subscriptions have become the default. Some consumers now joke that their digital lives consist of a long list of £4.99 monthly charges.
While software subscriptions are familiar, hardware subscriptions are a newer twist. Apple, for instance, introduced the iPhone Upgrade Program in 2015. Instead of buying an iPhone outright, you pay a monthly fee. After a year, you can trade in for the latest model. The scheme includes AppleCare+ insurance, making it more of a service bundle than a purchase.
PC manufacturers have similar schemes. Dell, HP, and Lenovo offer “Device as a Service” (DaaS) plans for businesses. Companies don’t buy laptops; they lease them. When the devices age, they swap them out for new ones. The appeal is similar to software subscriptions: predictable costs, up-to-date equipment, and reduced hassle.
Even gaming has moved this way. Microsoft’s Xbox All Access lets players pay a monthly fee for both a console and a Game Pass subscription. In essence, you don’t own the hardware—you’re renting the whole ecosystem.
The public’s reaction to the subscription model has been mixed, to put it politely. Many consumers see the benefits: lower upfront costs, always up-to-date software, cloud storage, and easier access. Businesses especially appreciate predictable budgeting and reduced IT overhead.
But resistance has been strong as well. Common criticisms include:
Surveys show that while many people accept subscriptions as a fact of life, they remain wary. There’s nostalgia for the days when you could buy software once and use it for as long as your computer would run it.
If people dislike subscriptions so much, why do they keep signing up? The answer lies in a combination of convenience, necessity, and lack of alternatives. For example, if your entire office runs on Microsoft 365, you can’t realistically switch back to Office 2010 just to avoid the monthly bill. Likewise, if you’re a designer, Adobe’s tools are industry-standard; clients expect you to use them.
For hardware, the appeal of always having the latest device without a huge upfront cost is powerful. Leasing also shifts responsibility: if a device fails, you simply get a replacement. Younger consumers, accustomed to Spotify and Netflix subscriptions, often see tech devices in the same light—as services rather than possessions.
The subscription trend shows no signs of slowing. In fact, it’s likely to intensify. Several possible directions stand out:
Looking further ahead, the biggest shift may be psychological. As more people grow up never “owning” software or hardware, they may not see subscriptions as unusual at all. Ownership itself could become a quaint concept, like buying CDs or videotapes.
The rise of the subscription model in modern computing reflects a fundamental shift in how we view technology. For companies, it means reliable income and tighter customer relationships. For consumers, it offers convenience but at the cost of ownership and long-term expense. Public reaction has been a mix of acceptance and frustration, but the trend seems irreversible.
As we move into the future, subscriptions will likely expand further into hardware, vehicles, and even household appliances. The challenge will be finding a balance between convenience and consumer control. One thing is clear: the days of buying a box of software and calling it your own are gone. Welcome to the era of endless monthly bills.