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Consumption-based Licensing

A Software License Model that allows an End-User to pay for an application or device based on actual usage of that product. Consumption Based Licensing often implies the user pays a certain amount in advance and then draws down against the pre-payment based on their use (“consumption”) of the application. Consumption may be defined in terms of hours or days of use, or some other application-specific metric (such as the number of simulations run, etc.) Use of different features within the application may result in varying drawdowns against the pre-paid amount (for example, Feature A may cost X per use and Feature B may cost Y per use, etc.) Once the pre-paid amount has been exhausted the application may no longer function until the account has been topped up again (depending on vendor policy).

See also Metering

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