The business impact of choosing the right software licensing model

Table of Contents

• Understanding software licensing models
  • The need for software licensing models in your firm
• Types of software licensing models
  • 1. Perpetual software licensing models
  • 2. Concurrent software licensing models
  • 3. Subscription-based software licensing models
  • 4. Proprietary software licensing models
  • 5. Floating feature-based software licensing models
  • 6. Feature-based software licensing models
  • 7. Network-based software licensing models
  • 8. Cloud-based software licensing models
• How to choose the right software license models
• Boost business growth with Virima’s software license management
  • Unified software license management
  • Windows and Linux Discovery Agent for accurate metering
  • Customizable tracking and reporting
  • Ensure compliance management
  • Versatile IT discovery for informed decisions
  • Optimize Costs
• Pick the right software license models and manage it effectively with Virima

Over the years, software licensing models have evolved significantly to meet the changing demands of the IT industry. What started as straightforward individual licenses for single users has now expanded into intricate partnership agreements with unlimited access. This evolution reflects the ongoing efforts of both vendors and customers to achieve greater flexibility and maximize the value of every software investment.

In this article, we will begin by defining software licensing models. We will then examine the different types of licensing models available today. Furthermore, we’ll discuss the importance of these models and their impact on your business. 

Overall, you’ll understand how these various software license management structures can help you choose the right fit for your needs.

Understanding software licensing models

Software licensing models define how users can access and use software. These models influence pricing and usage rights. Typically, they specify the number of users, devices, or features available. For example, some licenses allow use on a single device, while others permit broader access across multiple devices. Transitioning between models can affect costs and compliance. Understanding these models helps businesses choose the best fit for their needs and budget.

The need for software licensing models in your firm

Understanding these licensing models can greatly benefit your business. Let’s explore the advantages:

• Flexibility: Various software license models provide different levels of flexibility. Depending on your needs, you can opt for licenses that fit a few users or your entire team. 
• Scalability: Software licensing models grow with your business. When you need more licenses or wish to switch models, it’s straightforward. 
• Compliance: They also help maintain IT regulatory compliance with legal standards. Tracking usage also becomes easier, reducing the risk assessment of legal issues from software piracy. 
• Predictable costs: Predictable pricing structures are a key feature of many software licensing models. This feature supports effective budgeting and also avoids surprise expenses. Therefore, financial planning becomes more manageable.
• Access to updates: Typically, software license management models include software updates. This access ensures you benefit from the latest features and IT security improvements. Therefore, your business remains current and protected.

Types of software licensing models

Here are the main types of software license models:

1. Perpetual software licensing models

Perpetual licensing is the traditional model where you buy software once and own it forever. You pay upfront and sometimes an annual maintenance fee. This model offers cost certainty and avoids surprises. 

2. Concurrent software licensing models

Concurrent licensing allows businesses to buy licenses in bulk, letting multiple users share one license code. This method simplifies software license management and saves both time and money.

3. Subscription-based software licensing models

Subscription-based licensing is popular with companies like Spotify, Adobe, and Netflix. Customers enjoy the regular billing cycle and self-service features. This setup boosts satisfaction and trust.

4. Proprietary software licensing models

Proprietary licenses are common, allowing the use of software while the publisher keeps ownership. Users must follow terms that keep the software under the provider’s control.

5. Floating feature-based software licensing models

Floating feature licensing lets you buy multiple licenses and limit the use of certain features among users at the same time. This model offers both flexibility and cost savings.

6. Feature-based software licensing models

Feature-based licensing offers flexibility by letting you customize features for each license. This approach provides tailored solutions to meet individual needs.

7. Network-based software licensing models

Network licensing is ideal for software use without constant internet access. It lets you monitor usage and feature access even offline, ensuring reliable control.

8. Cloud-based software licensing models

Cloud-based licensing provides access from anywhere, with subscription licenses being the most common. It works well with both new cloud systems and existing on-site platforms. However, transitioning from non-cloud to cloud-based licenses may be less recommended.

How to choose the right software license models

By now, you might be familiar with different types of software licensing models. Next, how do you select the best one for your software license management strategy? With various models available, choosing the one that aligns perfectly with your needs is crucial.

To find the optimal software licensing models, follow these three simple steps:

1. Determine your licensing terms: Decide how to offer your software to customers. Then, consider factors like duration, features, geographic restrictions, or device limitations.
2. Select the appropriate model: Explicitly choose the software license models that best fit your strategy from the available options. Remember, you can also implement multiple software licensing models simultaneously if needed.
3. Apply constraints: Identify any specific constraints for your chosen software license management strategy. This might include limits based on time, features, geography, or devices.

Thus, by considering your needs and constraints, you can select the best software licensing models. This approach ensures flexibility, cost-effectiveness, and compliance. It also helps your strategy align with your business goals. As a result, you’ll meet customer expectations and set the stage for long-term success in managing software licenses.

Boost business growth with Virima’s software license management

Choosing the best software licensing models for your needs can be challenging with so many similar options available. Virima addresses this problem and significantly streamlines this process by helping you select the optimal software licensing strategy.

Source

Virima is a leading IT asset management platform that allows organizations to track, monitor, and optimize software usage across their IT environment. By offering clear insights into installations and usage patterns, Virima keeps businesses compliant with licensing agreements. This also helps avoid the costs of over-licensing or under-utilization. 

Here’s how Virima can help in the software license management cycle:

Unified software license management

Virima offers a central hub for all your software licensing models. Further, this gives you full control and visibility. Track licenses efficiently, monitor compliance, and spot unused licenses to reduce costs.

Windows and Linux Discovery Agent for accurate metering

Manage costs and optimize software licensing models with the Windows and Linux Discovery Agents. This tool also identifies and reclaims unused software, regardless of PC location, ensuring efficient software license management.

Customizable tracking and reporting

With Virima, customize your software tracking and management. Further, captures relevant details easily. You can also use comprehensive reporting and analytics for insights into software usage, supporting better decisions and growth.

Ensure compliance management

Virima monitors compliance with licensing models to avoid penalties. It also ensures your organization follows licensing agreements. Indeed, this reduces legal and financial risks, supporting business growth.

Versatile IT discovery for informed decisions

Virima discovers hardware, software, and network devices quickly. Choose between agent-based or agentless discovery methods to best suit your IT environment. Near real-time updates ensure your IT inventory software remains current. Hence, it enables informed decisions about software license management and optimization, promoting strategic growth.

Optimize Costs

Virima identifies and consolidates unused licenses. This results in significant IT cost optimization and improved software licensing models’ investment. Consequently, it frees up the budget for other IT projects, driving business growth.

Pick the right software license models and manage it effectively with Virima

Choosing the right software licensing models involves thorough research into your long-term strategy, software strengths, and user needs. However, the work doesn’t end once you select a model.

After licensing your software, you must track its usage so you can also improve your software usage and boost sales. With Virima, you can customize tracking, ensure compliance, and enhance IT infrastructure management. Its solutions also offer insights into user behavior and network performance. Moreover, this helps you refine your licensing models and enhance customer satisfaction. 

Discover how Virima’s software license management solutions can help you maximize your business productivity. Request a demo today!