What is a floating license? An easy-to-understand explanation of how software is used

Explanation of IT Terms

What is a Floating License? An easy-to-understand explanation of how software is used

In the world of software, the concept of licensing plays a fundamental role. Among the various licensing models available, one common type is the floating license. But what exactly is a floating license, and how is it used? In this blog post, we will explore this concept in a simple and easy-to-understand manner.

Understanding Floating License:
A floating license, also known as a network license or concurrent license, is a type of software license that allows multiple users to share a fixed number of licenses simultaneously. In simple terms, it is like having a pool of licenses that can be used by multiple users at the same time, instead of each individual having a dedicated license.

How does it work?
When a software application is installed with floating license support, the licenses are hosted on a central license server. This server keeps track of the number of available licenses and allows users to check them out when needed. As users start the software, they access the license server, which grants them permission to use the software until they exit it. Once they are done, the license is returned to the pool and becomes available for other users.

Benefits of Floating Licenses:
1. Cost-effective: Floating licenses can be a cost-effective option for organizations because they allow multiple users to share a limited number of licenses, eliminating the need for a dedicated license for each individual.
2. Flexible usage: With floating licenses, users can access the software from multiple devices or locations, making it convenient for companies with remote or distributed teams.
3. Efficient resource management: Floating licenses enable better resource management by allowing licenses to be utilized by users who need them the most at any given time.

Real-world Example:
Imagine a design firm with ten designers. Instead of purchasing ten individual licenses for a design software, the firm could opt for a floating license model. With a floating license, all ten designers can use the software concurrently, as long as a maximum of ten licenses is not exceeded. This not only eliminates the need for additional licenses but also promotes collaboration and flexibility within the design team.

In Conclusion:
A floating license is a type of software licensing model that allows multiple users to share a fixed number of licenses concurrently. It offers cost-effectiveness, flexibility, and efficient resource management for organizations. By understanding the concept of floating licenses, companies can make informed decisions when it comes to software licensing, promoting effective collaboration and utilization of resources.

Remember, the next time you come across the term “floating license,” you’ll have a good understanding of what it entails and how it can benefit you and your organization.

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