There are multiple types of software licenses and we decided to highlight six and give some insight into how they operate. Take a look at the below content and we encourage everyone to share.
1. Perpetual License
A perpetual license is a license that is paid once and does not need to be renewed annually. A perpetual license would be similar to mobile apps that are paid and not subscription based. i.e. Buy an app for .99 cents and it is owned by the user with free updates. Other types of perpetual licenses allow the customer to install and use the software indefinitely but technical support is included for a limited term and the customer has the option to install updates at the end of the term or remain with the last version that was installed.
2. Discount Pricing
Multi-license breaks, limited-time or introductory offers and breaks based on a commitment to purchase a given number of licenses over time are all forms of discount pricing. If the product has a large enough user base or is considered strategic, the company may formalize such offers as a volume purchase agreement. For example. A enterprise company commits to buying multiple licenses of mobile data visualization software, but does not necessarily have to purchase the licences up front.
3. Volume Purchase Agreement
A formal agreement between a software manufacturer or vendor and a client. A source, order process and usually pricing limits are negotiated and put in a contract with a specific term and renewal conditions. Volume purchase agreements are rarely mandatory i.e., end users can buy smaller amounts upfront, but generally large, upfront purchases have very advantageous pricing.
4. Subscription license
Allows the user to use the software for a specified time period. This license usually includes technical support and access to upgrades and patches released during the term of the subscription. At the end of the term the user has several options: (1) renew the subscription; or (2) purchase a perpetual license at a discounted cost; or (3) remove the software from their system.
5. Freeware license
This license type is offered as freeware by the author and does not require paying a fee for use. Freeware licenses are similar to free apps on iOS, Android, Windows 8 and Blackberry. Free mobile applications are monetized through advertising, paid sponsorship, paid content and other forms of advertising, rather than paying a monthly, yearly or perpetual license fee.
6. Shareware license
This is a license to use software for a trial period and then, if you continue to use the software, you must pay a shareware fee or cease using the software.