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Floating Licenses: Control Concurrent Usage of your Software

What Is a Floating License?

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

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.

How Does Floating Licensing Work?

Here's a step-by-step explanation of how a floating license model operates:

  1. License Pool Setup: A software vendor purchases a certain number of licenses and sets up a license server or a license management system. These licenses are 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 at that moment.
  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 temporarily assigned to that user or device.
  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 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: 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 businesses.
  • 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 offer license borrowing, allowing users to temporarily check out a license even if all licenses are in use. This feature enhances user flexibility and ensures uninterrupted, immediate access to the software when needed.
  • 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 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 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

LicenseSpring empowers your software company to provide two distinct types of concurrent licenses for your software applications.

Utilizing LicenseSpring's private network floating licenses, you can easily establish license servers at your customers' sites.

Additionally, the cloud concurrent licenses allow the client application to effortlessly register and deregister license files from the allocated pool, eliminating the need for individual licensing servers for each account.

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

Our Enhanced Feature Set Within Floating Licenses

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

With this feature set, you can tailor your software licensing models and approach to meet the unique needs of your business and customers.

Let's explore the key capabilities:

  • Individual Timeout and Concurrent User Control: Take charge of your licensing management by setting specific timeout periods for each license, ensuring optimal resource allocation. Additionally, you have the ability to define the number of concurrent users allowed for each license, enabling efficient usage across your user base.
  • License Borrowing and Timeout Override: Empower your users with the option to borrow licenses when needed, boosting productivity and enhancing the overall user experience. Furthermore, you can customize the timeout period for borrowed licenses, granting users more flexibility while adhering to your licensing policies.
  • Resource Pooling for Enhanced Efficiency: Our floating licenses enable you to pool resources, allowing any user within your network to access available licenses. This resource pooling optimizes license utilization and streamlines the licensing process across your organization.
  • Offline Activation for Uninterrupted Access: For 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.
  • Insights through Usage Analytics: Stay informed and make data-driven decisions with our comprehensive usage analytics. Easily monitor license allocations and identify trends, allowing you to proactively manage your licensing resources. Additionally, receive notifications when an account approaches its maximum allocation, preventing any disruptions to your users.

FAQ

Why do ISVs Issue Floating Licenses to their Customers?

A floating license, alternatively known as a concurrent license or network license, is a commercial software licensing model that permits a restricted number of simultaneous uses of the software application.

This type of license dictates the maximum number of devices that can run the application concurrently, and it may also specify the allowed number of concurrent users for accessing a service.

Software vendors commonly consider implementing concurrent licensing for their software products and applications in two main scenarios:

Site Licensing:

  • Floating licenses are frequently sought by customers seeking a cost-effective alternative to end-user licensing.
  • Instead of providing separate licenses for each employee or seat within a department or organization, some companies opt to grant usage rights to anyone at a specific location.
  • This approach permits all devices or users on the network to access the application while enforcing concurrency restrictions to manage usage effectively.

Cloud Resources:

  • A software development company chooses cloud resources to deploy their web-based application due to scalability, cost-efficiency, global accessibility, easy deployment and updates, security and compliance, managed services, disaster recovery, and development/testing environments.
  • Cloud resources provide the flexibility and reliability required to serve diverse customers and handle varying workloads effectively.
  • Cloud resources are also commonly used to limit the number of Docker Containers, Kubernetes Pods, or Instances within AWS or Azure where your application is allowed to run.

When Should I Consider Installing an On-Premise Floating License Server?

Floating on-premise license servers should be considered in specific situations where your software licensing needs align with the following criteria:

  • Security and Data Privacy: If your software handles sensitive data and requires strict control over data access, an on-premise floating license server offers greater security by keeping licensing operations within your organization's network.
  • Offline Usage: If your software is used in environments with limited or no internet connectivity, an on-premise license server allows clients to access licenses even without an internet connection.
  • Network Stability: In scenarios where internet connectivity might be unreliable or intermittent, having an on-premise floating license server ensures smooth license management without relying on external servers.
  • Compliance and Regulatory Requirements: Some industries have specific compliance requirements that mandate software and licensing to remain within the organization's physical premises. In such cases, an on-premise solution is essential.
  • High Availability: If your software demands uninterrupted access to licenses, an on-premise floating license server can be designed to provide high availability and failover support.
  • Customization and Control: An on-premise solution allows you to have more control over the licensing environment and tailor it to suit your specific needs and workflows.
  • Reduced Latency: In situations where reduced latency is critical for optimal software performance, an on-premise floating license server can offer lower response times compared to cloud-based solutions.

When is a Cloud Floating License a Better Choice?

A cloud floating license can be a better choice than an on-premise floating server in several situations, offering distinct advantages for specific use cases.

Consider the following scenarios where a cloud floating license model proves to be the preferred option:

  • Scalability and Flexibility: If your software application experiences varying demands for licenses, a cloud-based solution offers seamless scalability. The cloud infrastructure can easily adapt to fluctuations in user numbers and ensure optimal performance during peak usage periods.
  • Global Accessibility: Cloud floating licenses enable users to access the software from anywhere with an internet connection. This global accessibility is ideal for businesses with a distributed workforce or customers spread across different regions.
  • Minimal IT Overhead: Setting up and maintaining an on-premise floating server requires dedicated IT resources. Opting for a cloud-based solution eliminates the need for hardware procurement and server management, reducing IT overhead and allowing your team to focus on core business activities.
  • Rapid Deployment: Cloud solutions can be quickly deployed, allowing you to start providing licenses to your customers or users without the lead time required for setting up on-premise infrastructure.
  • Reliability and Redundancy: Reputable cloud service providers offer high availability and redundancy, ensuring continuous access to licenses even during unforeseen outages or hardware failures.

What is the Difference Between a Node-Locked and Floating License?

The main difference between a node-locked and a floating software license lies in how they are associated with end users and their flexibility in terms of usage:

Node-Locked License:

  • Bound to a specific device (or "node"), such as a computer or hardware dongle.
  • Tied to a single user or a specific machine, and cannot be shared among multiple users.
  • Offers a fixed and dedicated license for a particular device, providing exclusive access to the software.

Floating License:

  • Not tied to a specific device, allowing it to be shared across multiple users or machines.
  • Offers greater flexibility as the number of licenses purchased determines the maximum number of simultaneous users or installations.
  • Users can "float" between different devices, utilizing the software as long as the total number of concurrent users does not exceed the number of licenses owned.

Future Outlook for Floating Licenses

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

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