Software Licensing

An effective software licensing solution provides flexibility in license creation, delivery, activation, and entitlement management, while also protecting intellectual property with robust anti-hacking security.

The era of selling software with a perpetual license in a box is long past. Today, the ability to provide adaptable licensing models is essential for every ISV looking to optimize their software monetization strategy.

Popular cloud-based technologies and modern delivery models like Software-as-a-Service (SaaS) provide consumers with more options for using and purchasing software. As consumer preferences evolve rapidly, ISVs must be agile enough to re-package and deliver their offerings to match these dynamic usage requirements. Consumption-based licensing, feature-on-demand, subscriptions, trial licenses, and a variety of other models can be readily adapted to meet both business and end-user expectations.

Here are some of the key considerations for efficient and successful software licensing:

License Creation

A software license can be created manually or automatically with a license server that is integrated with a back-office ERP, CRM, e-commerce, or other existing system. Regardless of the method, a purchase order is generated, resulting in the creation of the license. The license is then delivered to the end user and activated through various mechanisms, depending on the type of software container and the level of automation that exists.

License Delivery

A license can be delivered to the user in several different license containers – a secure dongle, an encrypted license file bound to a machine attribute, or a cloud-based container bound to an end user. Each container type offers unique benefits and can be selected based on the specific needs of the software and its users, ensuring security and optimal user experience.

License Activation

Regardless of how the license is delivered to the end user, a receipt is sent back to the creator. The license is activated on the local machine, either through an online connection via the vendor’s system or offline via a local network. This activation process ensures that the software is properly authorized for use.

License Management

Once the license is delivered and activated by the end user, mechanisms are in place to report its usage back to the vendor. More sophisticated license management systems include a license server that maintains a record of all customers and license entitlements. These systems provide extensive capabilities to report on licenses and provide advanced controls to move licenses, borrow licenses, resell licenses, and others.

Contact us to learn more about end-to-end license management solutions that will work for your business. Send us an email to info@software-licensing.com or submit the form below.