3 types of software
Locally installed software - You can buy the software in one go either from a shop or downloading it and save it to your own computer. You pay a one-off fee and after that you will own this software, so you can use it for however long you want.
Leasing the software - You can lease (rent) the software from the company, save it on your computer and pay for it every month instead of all in one go.
Software as a service - You can use a system called software as a service (SaaS) where you pay for the software as you use it - similar to pay as you go on mobile phones. The software stays on the system of the company selling it this is called hosting software. Sometimes you can install the software on your computer but it will stop working once the period that has been paid for has comes to an end.
Examples of the 3 types of software
Leasing the software -
Spotify on iOS
Adobe Creative Cloud
Software as a service -
Microsoft Office 365