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CU Book Store / Computers / Software Licensing / Licensing Terminology
Licensing Terminology
- Concurrent Use: Only a certain number of users may run the program at the same time. The software locks out additional users until someone quits the program. Some vendors require customers to install special metering software to buy this kind of license.
- Site License: Any number of users on the same company network can use the program.
- An upgrade may need to be purchased at each new version change.
- A new license may need to be purchased at each new version change.
- Maintenance, subscription, or upgrade insurance may be purchased, which will provide automatic updates for an established period of time.
- Purchase of a specified license media pack
- Purchase of a specified license starter pack
- Purchase of a box (retail) copy of product
- Inclusive with sale of license
- Downloadable via internet (ESD)
Authorization - Vendor approval required for Campus Resellers (i.e. The CU Book Store, etc.) to sell their products.
Concurrent Licensing - A software license that is based on the number of simultaneous users accessing the program. It typically deals with software running on the server where users connect via the network. For example, in a five-user concurrent use license, after five users are logged on to the program, the sixth user is prohibited. When any one of the first five log off, the next person can log on. Concurrent licensing can be managed by the application itself or via independent software metering tools.
Contract/Registration/Serial Number - Number assigned at time of purchased. May be required to purchase additional licenses, or to purchase maintenance.
Contractual License Program: - Licensing program which is governed by the terms of a contract. Typically the contract is one established by the licensing vendor.
Cumulative Pricing - Allows the customer to accumulate licenses to reach a discount tier.
Example: Customer buys 50 licenses at the 50-99 tier. The following year they want to add another 50 licenses. They can use the 50 licenses they already own, and combine them with the 50 that they’re buying now to qualify for the 100 unit price tier.
ESD (Electronic Software Delivery) – No physical media is shipped with the order. ESD systems provide secure communications that customers use to download software. The Media Software and/or License are downloaded via the web or delivered as an e-mail containing links from which the media is downloaded.
Established Pricing -Allows the customers to buy at a discount level established by a previous purchase.
Example: Customer buys 50 licenses at the 50-99 tier. Two months later they want to buy 6 more licenses. Because they’ve established themselves at the 50-99 tier, they can buy the 6 new licenses at the 50-99 tier.
If the customer makes a new purchase of 100 licenses, they would re-establish themselves at the higher discount tier.
Home Use Rights - Allows teachers and staff to install software on home computers for use in school activities.
LOD (Letter of Destruction) - In the event that a return is necessary, a letter of destruction may be signed by the end user stating that they will destroy a license certificate in lieu of returning the order.
License Backwards Compatibility - Allows the user to buy licenses for a program, but use a previous version.
Example: The school is using version 4 of a product. They determine that they need additional licenses. Version 4 is no longer available, but the school is not ready to move all of their users to version 5. They can buy licenses for version 5, but install version 4 instead.
When the school is ready to move to version 5, they only need to upgrade the version 4 licenses. The version 5 licenses can be converted from version 4 users to version 5 users with no additional costs.
License Renewal - Allows the user to continue using the software for the term of the renewal. Doesn’t necessarily allow the user updates/upgrades during the term.
Maintenance Renewal - Renews maintenance coverage
Minimum Order - Minimum buy-in level.
Mix & Match - Allows users to mix products, and/or platforms to reach discount tiers
Perpetual - No expiration date on the specific software version purchased
Platform - Another name for Operating System, although doesn’t make a distinction between versions. Windows 2000 and Windows XP are both members of the Windows platform. Other platforms include Mac, Linux, and Unix, among others.
Software License - Allows an individual or group to use a piece of software. Nearly all applications are licensed rather than sold. There are a variety of different types of software licenses. Some are based on the number machines on which the licensed program can run whereas others are based on the number of users that can use the program.
A software license is a type of proprietary or gratuitous license as well as a memorandum of contract between a producer and a user of computer software — sometimes called an End User License Agreement (EULA) — that specifies the perimeters of the permission granted by the owner to the user.
Software Backwards Compatibility - Allows the user to save the file to be used with a previous version of the software.
Example: The user has version 5 installed on the computer at school, but has version 4 at home. Version 5 would have an option to save the file as a version 4 document so it can be opened and worked on at home.
Subscription/Maintenance/Upgrade Insurance - Allows users to freely update/upgrade their software so they can always be running the most current versions.
Tiered Pricing - Multiple pricing levels based on purchase volumes.
Transactional License Program - Licensing program in which each order must meet minimum ordering requirements
Upgrade – A discounted price is given on a license because a previous version of the license is owned. When an upgrade is purchased, rights to the previous version are forfeited.
License Types
Individual License
Most vendors allow an organization to license one software copy per computer, regardless of how many people use it. They may permit one person to install software on both their office and laptop computers with a single license, because it is assumed that the user cannot run both copies simultaneously. Some vendors will also allow a user to install software on their home and business computers with a single license.
Network License
There are two types of licenses for applications that run over a network:
Maintenance
Once a new license is purchased, there are different ways to maintain that license so the version is always current:
License Delivery
Depending on the software publisher, end users receive license order certificates by mail, by email, or by downloading it from the publisher’s Web site. Purchase and delivery of the software application itself also varies by vendor. The different ways of obtaining media and documentation (manuals) include:
