Overdraft License

Often used in conjunction with the concept of Floating Licensing. Refers to a Vendor granting a user additional floating seats beyond what they have purchased to be used on a temporary basis when they need additional peak capacity. In some cases the overdraft licenses are paid for on a usage basis. In other cases overdraft usage is just tracked and used as a way of determining how many seats are required during the next renewal period.

See also Floating Licensing

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