Software Licensing Models
Focusing on end-users’ licensing requirements and delivering software in a manner that meets their expectations gives ISVs a competitive advantage. However, today’s users expect an array of licensing options beyond the traditional on-premise perpetual license; they want flexible options like subscriptions and pay-per-use. The rise of hybrid work environments and Software-as-a-Service (SaaS) are changing the rules for license availability and delivery.
ISVs must consider where their software will run, factoring in different operating systems, deployment platforms, and network architectures. A flexible license and entitlement management solution is essential—one that can adapt its core protection and licensing capabilities to meet the unique needs of each customer base.
Most Common Modern Software Licensing Types
Here are some of the most common and most modern licensing types:
Perpetual/Lifetime
The license is issued permanently and never expires.
Subscription
The ISV specifies how long the license is valid with autorenewal options.
Pay-Per-Use
Billing is based on the number of units used. The billing unit can be based on time or function and whether the payment is made before or after consumption.
Feature-on-Demand
Individual licenses are used to activate specific product features and modules as needed.
Regional License
The license can only be used in a specified geographical region (time zone).
Trial/Demo
The user can only access softwares features specified by the ISV for a limited time.
Single User
The license is stored on a local PC, device, or dongle plugged into a local PC. a local devie or a dongle plugged into a local PC. The software runs on the same computer/machine/device.
Network/Shared
The license is stored on a license server in the network and accessed by PVs as a floating license.
Hot Standby
The user owns a second license server that automatically activates if the primary server fails. The use of the backup server is logged and can be limited to a maximum duration.
Cold Standby
The user owns a second license server or an emergency dongle that activates if the main license server fails. The use of the backup server or the emergency dongle is logged and can be limited to a maximum duration.
Which model is best for your software and your end user? Contact us and we will help you decide. Send us an email or submit the form below.
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