This article is intended for IT managers for IT management and administration.
Definition of a Software License
Software license refers to the right to use a particular software, defining the rules of use and all restrictions associated with its utilization.
- A software license defines the right to use
- Specifies the financial terms of use, i.e., whether the software is free or paid
- Defines the conditions under which the software can be used
- Determines what users can do with the software
Basic Types of Software Licenses Based on Usage
- Open Source License: These licenses allow users to access, modify, and distribute the source code. Examples include the GNU General Public License (GPL)
- Freeware: Software that is available for free, but with certain usage restrictions. The author does not claim any compensation, and the software is available for free.
- Shareware: Software that is distributed for free on a trial basis. Users are expected to pay for the software if they choose to continue using it after the trial period expires.
- Perpetual License: This license allows users to use the software indefinitely after a one-time purchase. It may not include updates or support after a certain period.
- Subscription License (Subscription, SaaS): Users pay a recurring fee (monthly or annually) for using the software. This often includes updates and support for the duration of the subscription.
Basic Software Licensing Metrics
License metrics determine how a software license is calculated, i.e., how much and for what the company pays. The most common ways of calculating licenses are as follows:
- User-based License: The most common licensing metric, allowing one license to be assigned to one named individual (user), who can use it on multiple devices.
- Device-based License: The license is tied to a specific device, allowing installation of the software on a device such as a laptop, desktop computer, mobile device, or server.
- Transaction-based License: The license is calculated based on the number of transactions or the volume of something, such as data transfer volume, financial volume, number of invoices, or number of API calls.
- Processor or Core-based License: The license is granted based on the number of processors and the number of cores in each processor.
How to Manage and Track Software Licenses Used in Your Company (License Management)
- You need to have an overview of the quantity
- You need to have an overview of the metrics
Use the ready-made software tracking that you can customize according to your needs.
- To track all software and licenses
- You will get an easy overview of who is using what software and where it is installed
- You will have an overview of valid licenses