Software Licensing

Software licensing is a form of contract between an individual or a company that creates specific software and the user who downloads or buys the software to use for his or her purposes.

Software Licensing

Understanding the different software license types is crucial for modern business owners. With the advancement of information technology, software licensing has been evolving into a complex entity by itself. Software licensing is a form of contract between an individual or a company that creates specific software and the user who downloads or buys the software to use for his or her purposes.

The purpose of software licensing is to protect the copyright of software and restrict the way that the user can use it. Mostly, software companies or developers rely on licensing to make their living.

Based on the time-based licensing model, one can choose

Perpetual

The user can install and use the software for an indefinite amount of time. It generally comes with limited technical support, typically 90 to 120 days.

Subscription

This license allows the user to use the software for a certain amount of time. Software developers normally bundle technical support and software updates/upgrades protection during the subscription period. At the end of the subscription, the user can opt to renew or remove the software from the computing device.

For server, network or multi-user environment, we have

Server License

One license per each server. Some software company further requires a separate license to cover all computing devices connecting to the server. It is called Client Access License (CAL). Microsoft Windows Server is a typical example.

Per Processor/ Socket

One license for every processor on the physical server that is running the software. It includes access for an unlimited number of users. One variant for this licensing model is to license based on the number of cores in a processor.

Per Seat

One license per each machine for every computer or device using the software.

Per Mailbox

Licensing based on mailboxes – very common in the email related software solutions.

There is also special licensing for individuals and multi-users:

Volume License

When a company or organization buys software for a specific number of computers, it can get a better deal at a reduced price. It gives the rights for the entity to install the software in multiple devices.

Site

It provides a user or entity to use the software at a specified location without restriction on the number of users.

Feeling puzzled or confused about various licensing models?

Please contact us to understand and propose a suitable software licensing model that benefits your organization the most.

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