The On-Premise Model

Not so long ago, software was typically sold through a traditional licensing model, where users would purchase a copy of the software and install it on their local machines. This model was also known as the on-premise model.

With the on-premise model, users typically pay a one-time fee to purchase the software license. This would grant them the right to use the software indefinitely. In some cases, users would also have to pay an additional fee for support and maintenance.

If you are a 2020 QuickBooks Desktop User, you purchased and used your QuickBooks with the on-premise model. A one-time purchase, followed by unlimited use. 

The SaaS Model 

However, software delivery and distribution have changed with the rise of the internet and cloud computing. Most software companies now offer sales through the SaaS model (software as a service), where the software is hosted on the cloud and accessed through a web browser or a dedicated application. 

QuickBooks software does not fit the typical SaaS mold; since the software is available on a desktop and not through the web browser.  

The SaaS model has many advantages, including lower upfront fees, easy access since it’s typically accessed through a web browser, regular updates and maintenance directly into the program by the provider, and lower maintenance costs. 

Expiration and Discontinuance: Clarified 

Intuit has adopted the SaaS model as of 2022. This means that all QuickBooks licenses from 2022 and onward require annual renewal. 

  • If you do not renew your subscription, access to basic features will expire and you will lose access to QuickBooks. 
  • If you carry on your subscription, features are fully available in QuickBooks. 

Conversely, all QuickBooks versions before 2022, including the 2020 version, are still accessible to users but lack basic functionality and are generally discontinued. 

  • There is no option to renew. The prior versions are no longer serviced, and features are unavailable.

Users with Discontinued QuickBooks 

1. If you are a 2020 QuickBooks Desktop user and require the use of features that will be discontinued, you may: 

2. If you are a 2020 QuickBooks Desktop user and do not require the feature that will be discontinued, you may continue using the software. Please note that there will not be any online services or patches for any security risk. 

Toby Heilbrun

Author Toby Heilbrun

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