Glossary · General
Licensing model
The way you pay for software, for example per user or per month.
A licensing model is the way you pay for software. That can be per user, per month, based on usage or as a one-off purchase. The model determines not only what you pay today, but also how your costs grow as your business gets bigger.
The choice has more consequences than it seems. A price per user sounds cheap for a small team, but it adds up as you grow. A one-off purchase looks attractive until you find that updates and support are charged separately. Every model has a catch in the longer term.
So always do the sums over several years and for realistic growth. That way you compare models fairly and see what price you will really pay over time, instead of being led by the lowest figure today.
