What this choice changes
Compare cash committed today and the time over which the configuration is expected to remain useful. Each term keeps the same recurring resource allocation.
Compare the decision factors
| Factor | Monthly | Six months | Twelve months |
|---|---|---|---|
| Term discount | 0% | 28% | 50% |
| App 2 base total | 12.00 USD | 51.84 USD upfront | 72.00 USD upfront |
| Configuration stability | Best when requirements are still changing. | Requires confidence across two quarters. | Requires confidence across a full year. |
| Cash exposure | One month at a time. | Six discounted months in one payment. | Twelve discounted months in one payment. |
| Resource effect | No extra allocation. | No extra allocation. | No extra allocation. |
| Decision evidence | Current workload and one-month budget. | Stable workload, recovery owner and six-month need. | Stable workload, recovery and exit records, and annual budget. |
When each option earns its place
Use the longer term only when the discount justifies the larger upfront commitment and the selected profile is unlikely to change. Use monthly while resource needs or supplier details remain uncertain.