Glossary

Software cost glossary

Short plain-English definitions for software subscription, billing, renewal, and inventory terms used across this site.

Annual billing

A payment arrangement where the business pays for a software service for a year or similar longer period at one time.

A setting or term that renews a subscription automatically unless the business cancels or changes it before the required deadline.

A fixed charge that applies before per-user, usage, support, or add-on charges are added.

The person or inbox that receives invoices, renewal notices, payment issues, and billing updates.

The period before renewal when the business must cancel or change the subscription to avoid another charge.

The gradual increase in software spending caused by new tools, added seats, upgraded tiers, add-ons, or unreviewed renewals.

A temporary access period that may become paid if the business does not cancel or change the account before the trial ends.

A payment arrangement where charges normally occur each month, often with more flexibility but sometimes at a higher annualized price.

A pricing model where the business pays based on the number of users, accounts, or assigned seats.

The date when a subscription renews, charges again, or starts a new term.

An assigned license, user account, or access slot. The exact definition depends on the software vendor's terms.

Software adopted or paid for outside the normal approval, inventory, security, or billing process.

A practical list of software tools, owners, users, costs, renewal dates, billing terms, and cancellation notes.

A pricing model that groups features, limits, support levels, or usage allowances into named plans.

A pricing model where charges change based on measured activity such as messages, storage, API calls, users, credits, or transactions.