Understanding software license types: A guide to optimization

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Managing a software portfolio involves more than just tracking installations. As your organization grows, the complexity of managing high-cost specialty licenses like Autodesk, Bentley, and Adobe increases. With over 130 supported license managers—including 90+ engineering-specific vendors—OpenLM provides the visibility you need to transform your software spend into a strategic advantage.

To optimize your environment, you must first understand the underlying license models. Each type offers different levels of flexibility and cost implications.

Common software license models

Selecting the right model depends on your team’s size, geographical distribution, and workflow. Here is a breakdown of the primary license types used in modern enterprise environments.

Floating (concurrent) licenses

Floating licenses are shared among a pool of users. When you open an application, it requests a license from a central server. When you close the application, the license returns to the pool for someone else to use.

  • Best for: Global teams and engineering departments.
  • The OpenLM advantage: You can maximize these assets by using Process Monitoring to identify and harvest licenses from idle sessions, ensuring your pool is never locked by inactive users.

Additional Read: Take control of Autodesk named-user licensing with OpenLM

Subscription and SaaS licenses

Subscription models have become the industry standard for vendors like Adobe and Microsoft. You pay a recurring fee to access the software. While this reduces upfront costs, it often leads to “shelfware”—paid seats that no one uses.

  • Best for: Predictable operational scaling.
  • The OpenLM advantage: Our Subscription Optimizer analyzes usage patterns to help you reallocate or cancel underutilized seats during renewal cycles.

Named user licenses

A named user license is assigned to a specific individual. It cannot be shared. While this simplifies compliance for the vendor, it often leads to higher costs for the organization if users only require the software occasionally.

  • Best for: Dedicated, full-time power users.

Dongle-based licenses

While many vendors have migrated to the cloud, hardware-based security keys—commonly known as dongles—remain a staple for high-value engineering and industrial software. These physical USB devices act as a “key” that must be plugged into a machine for the software to run.

Because these are physical assets, they present unique challenges. They can be lost, stolen, or hidden in a desk drawer, creating a “black hole” in your visibility. OpenLM addresses this by monitoring USB ports across your network. With the OpenLM Agent, you can see which user has a specific dongle and, more importantly, if they are actually using the software or just keeping the hardware plugged in.

  • Best for: High-security environments or legacy industrial software.
  • The OpenLM advantage: You can track hardware ID usage in real-time to locate “missing” dongles and ensure these physical assets are shared effectively across your team.

Additional Read: Mastering the DNA of ITAM: A deep dive into ISO/IEC 19770

Token-based or consumption models

Used by vendors like Autodesk (Token-Flex), this model charges you based on actual usage time or specific actions. This provides high flexibility but can lead to unpredictable costs if not monitored closely.

  • Best for: Highly variable workloads.
  • The OpenLM advantage: We provide real-time reporting on consumption rates, allowing you to set alerts and stay within your budget.

Perpetual licenses

A perpetual license is a legacy model where you pay once to own a specific version of the software forever. While rare today, many engineering firms still maintain these assets alongside newer models.

  • Best for: Stable environments with no need for frequent updates.

Drive value with OpenLM Platform

Understanding your license types is the foundation. The next step is centralized management. The OpenLM Platform offers a scalable, cloud-ready architecture built on Docker and Kubernetes. It provides:

  • Real-time insights: See exactly who is using what, and where.
  • Automated compliance: Use an allowlist to ensure only authorized users access expensive engineering tools.
  • Cost avoidance: Identify denials and bottlenecks before they impact your team’s productivity.

By centralizing your on-premise and SaaS license data, you gain the data-driven clarity required to negotiate better vendor contracts and reduce wasted spend.

Frequently asked questions

What is the difference between a floating and a concurrent license?

There is no functional difference. Both terms describe a “pool” of licenses that any authorized person in your network can use on a first-come, first-served basis.

How does OpenLM handle idle licenses?

OpenLM monitors the actual activity within an application. If a session is idle for a predetermined time, the system can save the user’s work and release the license back to the pool, making it available for an active colleague.

Can I manage both engineering and office software in one place?

Yes. OpenLM supports over 130 license managers. This includes specialized engineering tools (90+ types) and standard enterprise SaaS applications like Adobe and Microsoft 365.

What is a license denial and why should I track it?

A denial occurs when a person tries to access software but no licenses are available. Tracking denials helps you understand if you need to purchase more seats or if you simply need to optimize your current pool to improve availability.

Is OpenLM Platform available on-premise?

Yes. We offer flexible deployment options. You can choose a cloud-based solution for scalability or an on-premise deployment if you require full control over your infrastructure and data.