A company relies on a mission-critical database application licensed under a subscription model. The server administrator receives a notification that due to a budget shortfall, the annual subscription renewal, due next month, will not be paid. What is the MOST significant and immediate risk the company faces in this situation?
The software will automatically downgrade to a free, feature-limited version.
The vendor will initiate a mandatory and costly license compliance audit.
The company can continue using the current software version but will no longer receive security patches or support.
The company will lose the right to use the database application, leading to a service outage.
The correct answer is that the company will lose the right to use the database application, leading to a service outage. A subscription license is essentially a rental; it grants the right to use the software only for the paid term. If the subscription lapses, access to the software is typically revoked, causing an immediate halt to any services dependent on it.
Continuing to use the software without updates is a characteristic of a lapsed maintenance plan on a perpetual license, not a subscription. In a perpetual model, the user owns the license indefinitely but pays for support and updates separately. A subscription model usually bundles software access, support, and updates together. While a vendor might offer a grace period or reduced functionality, the primary risk for a mission-critical application is the complete loss of service, not a downgrade. Facing legal action for non-compliance is a risk, but the immediate operational impact of the service stopping is a more significant and direct consequence of non-renewal.
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