Software Licensing Models Demystified

Info-Tech Research Group, August 2009, Pages: 9

Negotiating the right software licensing arrangement is essential for keeping software costs within manageable limits and maximizing the return on investment (ROI). Most companies tend to go with standard terms and conditions. To make a smart selection, IT managers need to know which of the available licensing offerings best suit their needs.

This note provides a review of the benefits and drawbacks of the following licensing arrangements:

- Node-locked licensing: hardware-based and end-user-based.
-Server-based licensing.
- Site licensing.
- Enterprise licensing.
- Subscription licensing.
- Utility-based licensing.

Take control of negotiations with a better understanding of the vendor licensing arrangements.

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