Difference between traditional software and SaaS

When it comes to using Logicim XLGL, you may hear two terms: traditional software and SaaS (Software-as-a-Service). Both provide tools to help you get work done, but the way they are licensed, delivered, and maintained is very different.

Traditional Software (Serial Number Licensing)

With traditional software, you:

  1. Purchase a license (a one-time cost, with an additional annual update fee)
  2. Enter a serial number to activate
  3. Handle updates yourself, either by downloading patches or renewing an update subscription
  4. May result in the use of an outdated version if updates are not renewed


This approach provides ownership of a specific version, but it comes with ongoing management tasks and potential gaps in security and updates.

SaaS (Software-as-a-Service)

With SaaS, you:

  1. Subscribe instead of purchasing a perpetual license, allowing for better cash flow flexibility
  2. Log in with a user account instead of using serial numbers
  3. Have access to the latest version, with updates delivered automatically
  4. Have continuous access as long as your subscription is active
  5. Benefit from built-in scalability and flexibility through plan upgrades as needs evolve


SaaS is based on ongoing service rather than one-time software delivery.

The difference between traditional software and SaaS comes down to this: software is a product; SaaS is a service. Traditional licensing locks you into versions and manual management, while SaaS delivers continuous improvements and simplified management.

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Edited: Tuesday, February 17, 2026

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