What is Licensing as a Service (LaaS)?
A Licensing as a Service (LaaS) provider is a cloud-based third-party provider of a software licensing system. These providers enable their customers to restrict and control the access of their software products using a set of license keys. To implement a LaaS platform for your application, you usually need to sign up to the LaaS provider, insert some code into your product, and use the LaaS provider’s dashboard or API to manage software license keys.
So how does it work? A software licensing system works as the lock in your application. You can then distribute keys to customers to allow them access. If a customer is trying to get access to your application, the software licensing system checks so that the customer’s license key is valid. They will only be allowed access if the key is valid. If a non-customer tries to access the application, they will not be able to provide a valid license key and will not be allowed access. In the LaaS dashboard, you are able to easily manage the license keys and set up more advanced licensing models.
The alternative to working with a LaaS provider is to code the system yourself. However, there are several reasons why a LaaS provider is oftentimes the better approach. Coding your own system will take both time and money, and maintaining the system will further increase those costs. If you instead outsource licensing to professionals, you get a fully maintained and scalable solution at a fraction of the price of coding it yourself. When working with a LaaS provider, you can also fully automate the license key creation process.
Many application types are able to implement a LaaS platform. Examples include SaaS, Desktop Applications, Web Applications, Plugins, SDKs, IoTs, Mobile Apps, and more.
Choosing the best Licensing as a Service (LaaS) provider
When choosing between different Licensing as a Service (LaaS) providers, some aspects are good to keep in mind. The number of license keys you expect to create could be important. Many providers only allow you to create a limited number of license keys on each pricing tier. As a result, they can get quite expensive if you are selling B2C. However, when selling B2B, you probably require fewer license keys, and the pricing plans are then less of a problem.
Another consideration is regarding licensing models. Advanced models such as pay-per-use, floating, or node-locked licenses can come at an extra cost with some LaaS providers. Additionally, you might benefit from listing the integration capabilities you need from a licensing provider. Integration with, for example, payment providers can be crucial when setting up a software licensing system. Making sure that your provider is able to accommodate your needs in the future is also good practice because that ensures that the provider can give you room to grow. For more information, please read this blog post.
Cryptolens offers an easy-to-use LaaS platform for software developers. With our comprehensive implementation guides in your programming language, you can get started with software licensing within minutes!
Software Licensing System Documentation