IT Licensing-Common Types
1. Perpetual License
A Perpetual License in IT is a type of software licensing model in which a user or organization purchases the software once and gains the right to use it indefinitely. A one-time purchase that allows permanent use of the software version purchased. Example: Older desktop software like perpetual versions of Microsoft Office. Unlike subscription-based licensing, there are no recurring monthly or annual payments required to continue using the software version that was purchased. This model is commonly used for desktop applications, enterprise systems, and specialized business software. Although the license provides permanent usage rights, updates, technical support, and newer software versions may require additional maintenance or upgrade fees. Perpetual licensing is often preferred by organizations that want long-term ownership, predictable costs, and greater control over their software infrastructure.
2. Subscription License
Users pay monthly or yearly to continue using the software. Updates and support are usually included.Example: Microsoft Microsoft 365.
3. Named User License
The license is assigned to a specific individual user, regardless of how many devices they use.
4. Device-Based License
The software is licensed per device or machine rather than per person.
5. Concurrent License
A limited number of users can use the software at the same time, even if many users are registered.
6. Volume License
Organizations buy licenses in bulk for multiple users or devices, usually at discounted pricing.
7. OEM License
Software comes preinstalled with hardware and is tied to that device.Example: Windows preinstalled on laptops.
8. Trial License
A temporary license allowing users to test software before purchasing.
9. Freemium License
Basic features are free, while advanced features require payment.Example: Zoom free vs paid plans.
Open Source Licensing Types
10. GPL (General Public License)
Software can be modified and shared, but derived works must also remain open source.
11. MIT License
A permissive open-source license allowing broad reuse with minimal restrictions.
12. Apache License
Allows modification and distribution while also providing patent protection.
Cloud Licensing Models
13. Pay-as-You-Go Licensing
Customers pay only for the resources or services they actually use.Common in cloud computing.
14. BYOL (Bring Your Own License)
Customers transfer existing software licenses to cloud environments.
15. SaaS Licensing
Software is accessed online as a service instead of being installed locally.Example: Salesforce.
Enterprise Licensing
16. CAL (Client Access License)
Users or devices require separate licenses to access a server. Common in Microsoft server environments.
17. Core-Based Licensing
Licensing cost depends on the number of CPU cores in a server.
18. Enterprise Agreement (EA)
Large organizations sign long-term licensing agreements with vendors for company-wide software usage.
Security & Network Licensing
19. Feature-Based Licensing
Different features or modules are unlocked depending on the purchased license tier.
20. Usage-Based Licensing
Pricing depends on usage metrics such as API calls, storage, bandwidth, or transactions.
Legal & Compliance Licensing
21. EULA (End User License Agreement)
The legal contract defining how software may be used.
22. Dual Licensing
A product is offered under both open-source and commercial licenses.
23. Site License
Allows unlimited or broad usage within a particular location or organization.
24. Academic/Educational License
Discounted or restricted licenses intended for schools, colleges, or students.
25. Evaluation License
A limited-use license intended for business evaluation before full deployment.
