Software licensing is a crucial part of the software development process. It is vital to establish a license to set the legal precedent for the work that can be enforced. This blog post from “Click Up” focused on different types of licensing and monetization models.
Software licensing outlines the terms under which a program can be used, shared, modified, or accessed. Different licences can have more restrictions or more freedoms than others.
Types of Licenses from the blog
Propriety: Commercial-based, normally only gives access to use the software and does not allow any further rights. An example is Microsoft Office.
Open Source: Gives large rights for modification, sharing, adaptation, and selling of further forms of software. Some examples are GNU GPL and MIT.
Free and shareware: Freeware can be used for free but may have limited features. Shareware is software that has a free trial version to push the user into buying the full version to either access all the content or continue allowing usage. An example of this is the Adobe suite.
The blog also outlines potential terms of monetization for software and the main forms being used. The types are
Perpetual: One payment with complete ownership of the software. Maintenance may be a separate plan
Subscription: Lower upfront and user-decided cost, but recurring cost with less control and no complete ownership for the user
Usage-Based: Monitor consumption and charge based on usage. Requires metering
Pay-for-overage: User pays base fee and more if they exceed a threshold of usage. Often used in conjunction with usage-based or subscription
Device: Restricts to one or a certain paid for number of paid-for devices
Concurrent/Floating: After paying, you have a set number of uses for the software
I chose this topic due to the coverage in class on licensing topics. While we mainly covered why licensing is important and what the main types are, I wanted to learn more and look into what the other forms of application are. It was good to be able to learn more about how people work to monetize their programs and work through their licenses. One of the biggest things that I learned from the blog and to consider in my future works is in terms of licensing. While I would normally favor open-source for my own projects, in a work environment, I know that the revenue stream from the software must be considered. I now have a greater understanding of potential licenses to consider with software and what the user will be getting when they pay. I found perpetual licenses to be most appealing, and then pushing updated forms to the users or simply selling new yearly versions, as was done in the past with software before switching to a subscription-based model. This is due to my desire to have the user still owning the software while not needing a constant internet connection.
Works Cited:
Team, E. (2024, September 28). Types of Software Licenses and Models Explained | ClickUp. ClickUp. https://clickup.com/blog/types-of-software-licenses/
From the blog CS@Worcester – Dan's Blog by Daniel Fung-A-Fat and used with permission of the author. All other rights reserved by the author.
