Software Licensing Glossary

A B C D E F I L M N O P R S T U W

Licensing as a Service (LaaS)

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.

Licensing as a Service (LaaS)

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!

More Glossary Terms

Software Licensing System Documentation

Minimum Viable Product (MVP)

What is a Minimum Viable Product (MVP)?

A Minimum Viable Product (MVP) is the simplest form of a product that has just enough features to satisfy the needs of early users. The term is often used when launching a startup, where the MVP is supposed to be a time-effective way of investigating the product-market fit of the product. The main goal of an MVP is to collect early user feedback. After collecting feedback, an entrepreneur can enhance the product-market fit by adopting the product to the feedback suggestions.

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Software Licensing System Documentation

Monthly Recurring Revenue (MRR)

What is a Monthly Recurring Revenue (MRR)?

A Monthly Recurring Revenue (MRR) is a term within business. Companies using a subscription pricing model will get a Monthly Recurring Revenue if their customers pay the subscription fee on a monthly basis. For example, if you have 10 customers and the subscription fee is $5, the company will have an MRR of $50. The cash flow from January’s operations will be $50, and that amount will be the same for February if no customers churn or sign up.

Having an MRR is oftentimes beneficial for software products using the SaaS business model.

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Software Licensing System Documentation

On-Premise License Server

What is an On-Premise License Server?

An On-Premise License Server is a software licensing method where a company allows its software application to run even without internet access. Instead of calling a LaaS provider’s server, the customer allows one computer with internet access to run on their site, and the other machines will contact that one computer for their license key verification.

More Glossary Terms

Software Licensing System Documentation