What Is a Floating License?

A floating license, also known as a concurrent license or network license, is a type of software licensing model that allows a limited number of users or devices to access and use a particular software application simultaneously within a license management system.

Unlike a node-locked license, which is tied to a specific device or user, a floating license operates within a license pool that multiple users or a set number of devices can draw from as needed. In contrast, standalone licenses provide access to specific users only, similar to reserved tables at a restaurant where the table is specifically reserved for one patron and cannot be used by others.

How Does Floating Licensing Work?

Implementing a floating license model might be a bit more involved than a classic node-locked license implementation (where all license checks are handled on the device running the software), it can remain fairly straightforward. Here are some of the common steps, when using an on-prem floating license server:

1. License Pool Setup: A customer purchases a number of licenses from a Software Vendor, The customer will be requested to deploy the vendor's License Server or license management software. The acquired licenses are then added to a centralized license pool.
2. User Request: When a user or device attempts to run the software application, it sends a request to the license server to obtain a license.
3. License Availability Check: The license server checks the license pool to see if there are any available licenses.
4. License Allocation: If a license is available in the pool, the license server grants access to the user or device, and the software application is allowed to run. The license is assigned to that user or device for a certain period of time (sometimes also referred to as the timeout period, registration period, or heartbeat). The user needs to "check in" prior to the timeout period in order to keep its registration alive.
5. Concurrency Limit: The number of available licenses in the pool determines the maximum number of concurrent users or devices that can use the software at the same time. If all licenses are in use (concurrent user limit enforced), additional users or devices will have to wait until a license becomes available (unless license borrowing is supported).
6. License Return: When a user or device finishes using the software or exits the application, the license is returned to the pool and becomes available for other users to utilize.
7. License Borrowing (Optional): Some floating license systems, like LicenseSpring, offer a license borrowing feature. This allows a user to temporarily check out a license from the pool, even if all licenses are in use, for a specified period. Once the borrowing, allowed license period expires, the license is automatically returned to the pool.
8. License Management: The license server keeps track of license usage and license usage tracking ensures that the number of concurrent users or devices does not exceed the purchased license count.

The Benefits Of a Floating License

For the End User

• Cost-Effectiveness for the end-user: Floating licenses allow organizations to purchase a pool of licenses that can be shared among multiple users. This reduces the overall licensing cost compared to individual licenses for each user, making it a cost-effective solution for businesse.
• Flexibility: Users can access the software from any device within the designated network. This flexibility is particularly advantageous for organizations with shared resources or remote teams, as it enables seamless collaboration and improved productivity.
• License Borrowing: Some floating license systems support license borrowing, allowing users to override the default heartbeat, and thereby check out the license for longer without having to keep the connection alive. This feature enhances user flexibility and ensures uninterrupted, immediate access to the software when needed.
• Offline / Air-gapped environments: There are many reasons why a customer may not want to allow software to phone home as part of a license check. Deploying a license server on a network would allow the software vendor to ensure that only devices connected to a specific network can access the licensed software, regardless whether unique and persistent IDs can be obtained for each device using the product.
• Centralized Management: Floating license systems often come with centralized license management tools, providing users with a clear overview of license usage and availability. This streamlines license administration and prevents over-licensing or license hoarding.
• Scaling and Optimization: Floating licenses can easily accommodate changing user demands. Organizations can add or remove licenses from the pool based on actual usage patterns, ensuring optimal license utilization and license optimization, and cost-efficiency.

For the Software Provider

• Optimized License Distribution: Floating licenses enable software providers to efficiently distribute licenses based on concurrent usage. This ensures that the number of licenses matches the actual demand, maximizing revenue while providing a positive user experience.
• Cost Savings: By offering floating licenses, software providers can streamline license management, reducing administrative overhead and license administration and infrastructure costs compared to managing individual node-locked licenses.
• Attracting Enterprise Customers: Floating licenses are highly attractive to enterprise-level customers, as they align with their collaborative work environments and offer cost-effective solutions for licensing large user bases.
• Software Evaluation and Trials: Floating licenses are advantageous for offering software trials and evaluations. Providers can provide temporary access to potential customers, allowing them to test the software before making a purchase decision.
• Enhanced Customer Satisfaction: Floating licenses provide users with flexibility and ease of use. Satisfied customers are more likely to renew licenses, recommend the software to others, and contribute to the provider’s reputation and growth.
• Cloud Licensing Opportunities: Floating licenses are easily implemented in cloud-based environments, providing additional business opportunities for software providers in the growing cloud computing market.

Floating Licenses with LicenseSpring: 2 Methods

LicenseSpring enables your software company to provide two distinct types of floating software licenses for your applications: site licenses and cloud concurrent licenses.

If the customer wants to license a site, or the devices running the software do not have access to the internet, LicenseSpring can supply license servers at your customers’ sites, ensuring secure and efficient license management.

Our cloud concurrent licenses allow client applications to register and deregister licenses from the allocated pool, over the internet. This eliminates the need for individual license servers for each account, streamlining the process.

Our approach guarantees a smooth and efficient licensing experience, making it easier for both you and your clients to manage licenses effectively.

Read More: LicenseSpring Floating Licensing Documentation

Enhanced Features of LicenseSpring Floating Licenses

LicenseSpring’s floating software licenses offer a comprehensive feature set designed to provide maximum flexibility and control over your software licensing.

Key Capabilities:

Individual Heartbeats and Concurrent User Control: Manage your licenses effectively by setting specific heartbeat intervals for each license, ensuring optimal resource allocation. Define the number of concurrent users allowed for each license to enable efficient usage across your user base.

License Borrowing and Heartbeat Override: Empower your users with the option to borrow licenses when needed, enhancing productivity. Customize the heartbeat period for borrowed licenses, granting users more flexibility while adhering to your licensing policies.

Resource Pooling for Enhanced Efficiency: Pool resources to allow any user within your network to access available licenses. This optimizes license utilization and streamlines the licensing process across your organization.

Offline Activation for Uninterrupted Access: In environments without internet connectivity, our offline activation feature ensures that your software remains fully functional. Deploy the license server on-premise, granting users seamless access even in remote or secure locations.

Read More about LicenseSpring's Offline Capabilities

Usage Analytics and License Monitoring: Stay informed and make data-driven decisions with comprehensive usage analytics and license monitoring. Monitor license allocations, identify trends, and proactively manage your licensing resources. Receive notifications when an account approaches its maximum allocation, preventing any disruptions to your users.

Secure Floating Servers: Use our self-provisioned hardware keys to prevent server cloning and duplication, ensuring the security and integrity of your floating licenses.

Future Outlook for Floating Licenses

The future of floating licenses looks promising, with ongoing developments in cloud technologies, licensing models, and license automation and automation.

The shift towards cloud-based solutions will continue to expand, offering software vendors and end-users enhanced accessibility and efficiency.

Advanced analytics and AI-driven license management will further optimize license allocation and user experience.

As the software industry becomes more customer-centric, floating licenses will evolve to accommodate personalized licensing options, allowing users to tailor their license packages to their specific needs.

Additionally, integration with emerging technologies like blockchain and DRM will bolster license security and counter piracy concerns.