What is concurrent licensing?
A software license that is based on the number of simultaneous users accessing the system is called concurrent license. In these systems, you can create unlimited user accounts, but at the same time only limited number of them can login to the system. For example, in a ten-user concurrent user license, once 10 users are logged in to the system, the eleventh user is prohibited to login to the system. When any of the first ten log out, the next user can login to the system.
Concurrent license is also known as Floating License.
What is the difference between named user license (per seat license) and concurrent user license?
Cloud software licenses are often sold using a named user license. Named user license is also known as per seat license. This means that you pay for the access to the system for every person who will be using the service. For example, you have 1000 people who need access to the system from time to time. Even though only a fraction of them use the system on a daily basis, you need to buy 1000 named user licenses to cover all people. In a concurrent license model for the same example, it is enough to buy number of licenses that will be used simultaneously.
Benefits of Concurrent Licensing
Concurrent licensing is especially very useful for companies that have hundreds or thousands of users. The most important advantage of concurrent licensing is the flexibility it offers. They are obviously more expensive than name licenses or per seat licenses, but they offer more possibilities. Rather than subscribing to hundreds or thousands of per seat licenses, you can subscribe to concurrent license model in a very cost effective way. You can create as many user accounts as you need and increase the number of concurrent license according to the number of users logging into the system simultaneously. For the long term, it is very obvious that concurrent licenses are very attractive and cost effective.