WhyNot?

Enterprise SW Licensing

Category: UCLA Product Innov
Responses: 1 (1 in support, 0 neutral, 0 in opposition)
Number of views: 506
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Most often, enterprise software licenses are granted on a “per-CPU” or a “per-user” basis. As a result, many license agreements are so expensive that only large businesses can afford to implement the software. Many small and medium-sized businesses must work without the benefits of the software or find alternatives that may be less optimal.

Why not enable small businesses and middle market organizations to cost justify functionality enabled by enterprise software, by developing an enterprise software licensing model that is based on actual usage, or the number of transactions processed depending on the purpose of the software?

The “usage” licensing model has been deployed by some Web sites, for example consumers are charged based on the number of songs they download at the iTunes site. Also, business users may now download application “plug-ins” on-demand at AppExchange at SalesForce.com.

mjw1, Sep 14 2005

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Comments from other members:

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Because "seats" are more tangible, and easier to track of.

iTMS tracks are content, not software, so the rules are different.

classicsat, Sep 14 2005