Token-based Licensing

The practice of licensing portfolios of applications, typically through consuming a shared pool of ‘tokens’ which represents an overall annual investment in a vendor’s software. Different applications within the portfolio may consume varying numbers of tokens depending on value. For example, if Microsoft Office were licensed using a token-based licensing approach, Microsoft Word might consume 4 tokens when a customer uses the application, Excel might consume 3 tokens and PowerPoint might consume only 1 token.