I’d expected this but it still sucks.
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Sort of. The activation license will work as long as you have it. They won’t renew support though, which effectively kills it when the support contract runs out.
You won’t be able to upgrade to new versions when the support contract runs out, but you can install updates to the existing version as long as updates are made for it. This has always been the lifecycle for perpetual licensing. It’s good forever, but at a certain point it becomes a security risk to continue using. The difference here is they won’t sell you another perpetual license when the lifecycle is up.