A way to measure the usage of software licenses. Software can be licensed in one of the following ways: individual (it cannot be shared with other users); site (a limited number of people can use the software); concurrent use (usage is limited to a maximum number of users at a particular time). The software vendor usually sets the guidelines on the type of software license. Monitoring is facilitated by the vendor or by the user. When software usage is measured by the user, the vendor can require a user to supply detailed reports or can rely on the user’s pledge. Enterprises can avoid liability and save money by accurately measuring the number of users.
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