Software Licensing-based Business Model
A Software Licensing-based Business Model is a licensing-based business model that defines the terms and conditions under which software can be used, distributed, and accessed.
- Context:
- It can (typically) be referenced by a Software License Agreement.
- It can (typically) determine how Software Purchase occurs, including whether it is bought outright, leased, or subscribed to on a periodic basis.
- It can (often) include different licensing agreements such as Volume Licensing, Subscription-Based Licensing, Perpetual Licensing, and Open-Source Licensing.
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- It can range from being an Individual Software License for personal use to being an Organizational Software License that covers multiple users or devices.
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- It can specify the rights and restrictions of the End-User, including the number of installations, usage limitations, and access to updates and support.
- It can impact the cost of Software Ownership, with some models offering lower initial costs and others providing long-term savings through perpetual rights.
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- Example(s):
- a Volume Software Licensing Program that offers cost-effective licensing for large organizations by allowing bulk purchase of licenses.
- a Subscription-based Software Licensing model where users pay a recurring fee to access software, often including updates and support.
- a Perpetual Software Licensing model where users pay a one-time fee for indefinite use of the software.
- an Open-Source Software Licensing model that allows users to use, modify, and distribute the software freely, often subject to specific conditions outlined in the license.
- a Company-Specific Software Licensing Model, such as a Microsoft licensing model.
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- Counter-Example(s):
- Shareware Models and freeware models where software is distributed freely with optional or limited licensing terms.
- Patent Licensing Model where a company grants other companies the right to use its patented technology in exchange for fees.
- Music Licensing Model that allows artists to earn revenue by permitting the use of their music in various media.
- Educational Licensing Model where institutions pay for access to digital textbooks and educational resources.
- See: Volume Licensing Program, Subscription-based Licensing, Perpetual Licensing, Open-source Licensing.