Floating licensing

Floating licensing is a software licensing approach in which a limited number of licenses for a software application are shared among a larger number of users over time. When an authorized user wishes to run the application they request a license from a central license server. If a license is available the license server allows the application to run. When they finish using the application, or when the allowed license period expires, the license is reclaimed by the license server and made available to other authorized users.

The license server can manage licenses over a local area network, an intranet or virtual private network, or the Internet.

Floating licensing, also sometimes known as concurrent licensing or network licensing, is often used for high-value applications in corporate environments, such as electronic design automation or engineering tools.

The history of software licensing

• Licenses were fixed to a particular CPU.
• Prices of software licenses increased as the computer's performance increase.
• Limiting the number of copies of software made to disk or tape was important.
• Software is a network resource--licenses "float" on the network.
• Software costs are a function of how many users simultaneously run the software.
• Value exists in the use of software, not in the number of copies on disk or tape.

See also

• Software metering
• License manager
• License borrowing
• License queuing