Floating Licensing

The practice of selling end-users access to an application or service based on limiting the maximum number of concurrent users. For example, if a 10 seat floating license is sold to an organization, any 10 of the employees of that organization would be able to use the application at any point in time. This typically involves an end-user ‘checking out’ a license from the shared pool of licenses when the application runs, and ‘checking in’ the license when the end-user is finished with that application. If an end-user tries to run the application and there are no licenses currently available, they are denied access. In some cases, Vendors provide Overdraft Licenses in order to provide an additional buffer so that end-users do not receive denials in exchange for payment of those additional licenses upon use.