What Is It? – Also known as a concurrent license or network license, a floating software license is a license to use a software application that “floats” among multiple users. For example, you could have 20 authorized users under a single floating license. The catch is that only one user can use the application at any point in time. Or, you might have four floating licenses to the application, in which case 4 users could use the application simultaneously.
When Should I Use a Floating Software License Approach? – Whenever a software application is very expensive and not used continuously by members of a user base, you should think about a floating license approach. The approach allows you to reduce license costs while still satisfying user needs.
Limitations – Not all software developers offer a floating license option and insist on a direct user license approach. In addition, if your organization experiences variable work loads, with peaks in development or production cycles, that may mean that members of the application user base are competing for the float-licensed application during peaks. So, don’t be penny-wise and pound-foolish in your use of the floating software license approach.