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Increasingly software vendors and their users are looking to usage-based licensing: for the vendor it can be a competitive edge, an effective counter to piracy, a way to reach new markets, or a means for developing a continuing revenue stream from a customer; for the customer, they can better match costs and value delivered, have access to software for which a perpetual license would be beyond their means, or pay out of operations not capital budgets. Usage metrics can be the number of operations performed, records processed, messages transmitted, user accesses, time of use or volume of data accessed and so forth, perhaps with weighting for actions of different business value.
This webinar described some methods for offering usage-based licensing to your customers, whether for upfront payment of capacity ("debiting") or post facto payment ("metering"), with the application running either on the users' machines or as a hosted service ("SaaS"), and for both the network-connected and disconnected scenarios.
Attendees also received a copy of an academic paper Software Licensing: Pay-Per-Use versus Perpetual (click on the link to download this paper) by researchers at Carnegie Mellon University. They analyze usage-based versus perpetual licensing, and propose a model to help software vendors decide which is better for their business.
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