Floating licensing, also known as concurrent licensing, is a flexible software licensing model where a limited number of licenses are shared among a larger pool of authorized users or installations. Unlike the named licensing model, where a specific user or installation has guaranteed access to the software, floating licenses depend on a central license server. This server regulates the number of users who can simultaneously access the software. Once all licenses are in use, any additional users attempting to access the application must wait until a license becomes available.

VENDOR vs LICENSEE

Floating licensing offers significant flexibility to customers, making it a highly popular choice despite typically being more expensive than named licensing. In recent years, however, software vendors have increasingly shifted toward named licenses, as this model often favors their interests over those of the customer. The cost of a floating license can be three to five times higher than a named license, though this factor varies depending on the software.

While some vendors offer either floating or named licenses, modern software licensing-as-a-service platforms allow for a hybrid approach. This enables customers to combine both models, using named licenses for guaranteed access by power users and floating licenses for non-power users, thereby maximizing cost efficiency and flexibility.

HOW FLEXIBLE FLOATING LICENSING WORKS

A key component of floating licensing is the license server, a central system that enforces compliance by distributing valid tokens to users. When a client application starts, it connects with this server to obtain a token, granting temporary access to the software. Ideally, the duration of this access is defined by a configurable license parameter, rather than being hard-coded.

FloatingClose

To maintain the availability of licenses, it’s essential that clients send a session close event when they no longer need access to the software. This ensures that floating tokens are freed up for other users. However, especially in web applications, users often close the browser without formally logging off, leading to “zombie sessions” where licenses remain locked. To counter this, many systems define a session timeout period, which automatically ends inactive sessions after a set amount of time.

DESKTOP APPS

Standalone desktop applications without a user management system or sign-in process often lack the infrastructure needed to support floating licenses. To enable floating functionality, these applications typically rely on an external licensing API that acts as a license server, ensuring compliance and proper token distribution.

SaaS & WEB APPS

SaaS and web apps which already feature login and session management systems, are better suited for implementing floating licensing. However, even these platforms can benefit from modern licensing APIs, which can streamline operations and provide more advanced functionality than in-house in-house solutions.

THE IMPORTANCE OF MONITORING LICENSE USAGE

For both vendors and customers, monitoring the usage of floating licenses is crucial. It helps identify whether the current number of licenses is sufficient or whether adjustments are needed. Each time a user is unable to access the software due to all licenses being in use, this should be logged and analyzed to help make data-driven decisions regarding license management.

IS IT RIGHT FOR YOU?

If your organization has multiple users who need access to software tools but not all at the same time, floating licensing may be the ideal solution. It offers the flexibility to balance access and cost, ensuring that the software is available when needed without over-investing in licenses.

By implementing an effective floating licensing strategy, businesses can optimize software utilization, reduce costs, and ensure that their teams have the tools they need to succeed.

You can read more about SLASCONE’s floating license approach here.