Named user licenses are a common model of software license that grants access rights to specific users rather than devices. This means the license is assigned to an individual, typically via their user login, and they have the right to access the software regardless of the device they are using.
One significant advantage of named user licenses is the flexibility they offer. Because the license is not tied to a specific machine, users can access the software from any device, whether they’re in the office, working remotely, or using a mobile device. This is particularly advantageous in today’s increasingly mobile and remote working environments.
However, named user licenses also have potential downsides. They can be more challenging to manage, particularly in larger organizations, as they require active management of who has a license assigned. In contrast, device-based licenses typically need less active management once installed on a device.
Additionally, in environments where software use is more intermittent or shared across multiple people (like in shift-based settings), named user licenses can be less cost-effective than alternatives like concurrent or device-based licenses.
Overall, the adoption of named user licenses has been a key part of the shift towards more flexible, user-centered software licensing models that reflect changing ways of working and the increased importance of remote and mobile access. However, like any licensing model, they come with their own considerations and trade-offs that must be carefully managed.
Examples
SAP, a market leader in enterprise application software, utilises a Named User licensing model. One of the key advantages of named user licenses is their adaptability in various work environments, especially those favoring remote work or having multiple device usage. For example, under this model, each user who accesses the SAP software must have a named user license, which can be classified under different types depending on the user’s role and usage. This allows businesses to align their software investment more closely with their actual usage.
Autodesk, also utilizes named user licenses for many of its products like AutoCAD. This allows professionals such as architects or engineers to access the software across different devices, which can be incredibly beneficial for their often mobile work requirements.