This glossary from the SAM Training material defines general software licensing and software asset management terms, then the license metrics most often met in practice. Many of the terms also have entries in the site-wide Glossary. The “Associated with” column names vendors, bodies or tool categories where a term is commonly used; it is illustrative, not exhaustive and not an endorsement.
1. General terminology
| Term | Associated with | Explanation |
|---|---|---|
| Apache License | Apache Software Foundation, Open Source Community | A permissive open-source license allowing users wide freedom to use, modify, and distribute software, with minimal requirements on how modifications are shared. |
| Audit Defense | All Major Vendors, BSA (Business Software Alliance) | Strategies and processes an organization implements to prepare for and respond to vendor or third-party software audits in order to minimize financial, legal, and reputational risks. |
| Audit Right | Oracle, Microsoft, IBM, Other Major Vendors | A clause in many software license agreements granting the vendor the right to audit the customer’s usage to ensure compliance with the license terms. |
| BigFix | IBM (formerly), HCL | An endpoint management and security platform (originally from IBM, now HCL) that can discover software, automate patching, and integrate with ILMT (IBM License Metric Tool). |
| BSA (Business Software Alliance) | Microsoft, IBM, Adobe, Oracle, Other Major Publishers | A trade group that represents major software vendors, enforces copyright laws, and conducts anti-piracy campaigns. |
| BYOL (Bring Your Own License) | AWS, Azure, GCP, Oracle, IBM | A licensing model allowing organizations to use existing software licenses in new environments (often cloud-based), subject to specific vendor policies. |
| CAL (Client Access License) | Microsoft | A Microsoft licensing model where each user or device requires a CAL to legally access certain Microsoft server software (e.g., Windows Server, SQL Server). |
| CAL Suites | Microsoft Volume Licensing | Bundles of multiple Microsoft CALs sold together at a discount (e.g., Core CAL Suite, Enterprise CAL Suite) that provide access rights to various server products. |
| Cloud Service Provider (CSP) | AWS, Microsoft Azure, Google Cloud, IBM Cloud | A company offering cloud-based platforms, infrastructure, applications, or storage services, often involving subscription or pay-as-you-go licensing models. |
| Concurrent License | Autodesk, Engineering Software, IBM | A license type that limits the number of simultaneous (concurrent) users rather than assigning a license to a specific individual or device. |
| Container Licensing | Docker, Kubernetes, Major Enterprise Software Vendors | Licensing approach for software running in containers (e.g., Docker). It can be complex given dynamic container creation, making it critical to track usage properly. |
| Downgrade Rights | Microsoft, Oracle, IBM, Other Major Vendors | The ability to use an older version of the software than the one purchased, often allowed under volume licensing or enterprise agreements for compatibility reasons. |
| EaaS (Everything as a Service) | Major Cloud Providers (AWS, Azure, GCP) | A broad cloud-services model covering any on-demand IT function (extending beyond SaaS, PaaS, and IaaS) where organizations pay subscription-based fees for technology and service. |
| Effective License Position (ELP) | SAM Tools, Licensing Audits | A reconciliation that identifies how many software licenses an organization owns versus how many are actually needed, revealing any shortfall or surplus. |
| End of Life (EOL) | All Major Vendors | The stage at which a vendor no longer sells or develops a product or software version. |
| End of Support (EOS) | All Major Vendors | The point at which a vendor ceases to provide patches, updates, or technical support for a product, raising security and compliance risks if the product is still used. |
| Entitlement | All Major Vendors | The specific right to use software as granted by a license agreement, including how many users or installations are permitted. |
| EULA (End-User License Agreement) | Microsoft, Oracle, IBM, Adobe, etc. | A legal contract between the software publisher and the user, detailing how the software can be used, restrictions on usage, and the developer’s retained rights. |
| Floating License | Autodesk, Engineering Software, IBM | Also known as a concurrent license, it “floats” across a network and is allocated to users on a first-come, first-served basis, limited by the total number purchased. |
| Freeware | Various Developers, Shareware Communities | Software available at no monetary cost, but still subject to certain license terms or restrictions regarding redistribution or usage. |
| GNU GPL (GNU General Public License) | Free Software Foundation, Open Source Community | A widely used free software license requiring that any modified code be made available under the same GPL terms, ensuring the software remains free and open. |
| HAM (Hardware Asset Management) | IT Asset Management Programs (ITAM) | The practice of managing physical IT assets (e.g., servers, desktops, laptops), often integrated with software asset management for holistic IT asset oversight. |
| ILMT (IBM License Metric Tool) | IBM | IBM’s tool to measure software usage (especially sub-capacity in virtualized environments) for IBM products, ensuring compliance with IBM’s licensing rules. |
| Intellectual Property (IP) | Software Publishers, Patent & Copyright Offices | Creations of the mind (e.g., software, designs, inventions) protected by laws around patents, copyrights, and trademarks, subject to licensing agreements. |
| ISV (Independent Software Vendor) | Microsoft, Oracle, Salesforce (as platforms), Third-Party Software Makers | A vendor or organization specialized in creating and selling software solutions, often integrating with or built on top of another vendor’s platform. |
| ITAM (IT Asset Management) | ISO/IEC 19770, ITIL | The overarching practice of managing and optimizing all IT assets (hardware, software, network resources) throughout their lifecycle to control costs and risks. |
| License Compliance | All Major Vendors, BSA | Ensuring that software usage strictly adheres to the terms, conditions, and entitlements set forth in license agreements. |
| License Management | SAM Tools, Enterprise IT | The administration and optimization of software licenses, tracking entitlements and usage to reduce costs and maintain compliance. |
| License Metric | Microsoft, IBM, Oracle, SAP, etc. | A unit of measurement used to calculate license usage (e.g., per user, per device, per core, per processor), varying by vendor and product. |
| Licensee | End-Users, Enterprises | The individual or organization granted the right to use software under a license agreement. |
| Licensor | Software Publishers | The organization or individual that owns the software’s intellectual property rights and grants licenses to others (e.g., Microsoft, Oracle). |
| Maintenance and Support | All Major Vendors | An agreement covering software updates, patches, and technical support for a certain period, often sold alongside a perpetual license or included in subscriptions. |
| Middleware | Oracle WebLogic, IBM WebSphere, Red Hat JBoss | Software that mediates between different systems, enabling communication and data management (e.g., application servers). Often subject to specialized licensing policies. |
| MIT License | Open Source Community, GitHub Projects | A short, permissive open-source license with minimal conditions for reuse, allowing commercial and private use with attribution. |
| Named Device License | Microsoft, Citrix, Adobe | A license type assigned to a specific physical device, rather than a user. Each device must have its own license. |
| Named User License | Adobe, Salesforce, SaaS Vendors | A license assigned to a specific individual (named user), typically non-transferable except under specific circumstances or with vendor permission. |
| Node-Locked License | Specialized Engineering or Graphics Software | A license fixed to a particular machine (via a hardware ID or MAC address), limiting usage to that device. |
| Non-Perpetual License | Various Software Publishers | A time-limited license that expires after a specified period. Continuation of usage requires renewal (e.g., annual subscription). |
| OEM License | Microsoft Windows (pre-installed), Device Manufacturers | Original Equipment Manufacturer license bundled with specific hardware, typically non-transferable to another machine. |
| Open Source License | Free Software Foundation, Open Source Initiative | Licenses (e.g., GPL, MIT, Apache) that allow users to access, modify, and distribute source code under conditions that vary by license type. |
| Oracle’s LMS (License Management Services) | Oracle | Oracle’s internal team responsible for reviewing customer usage to ensure compliance with Oracle’s licensing policies and conduct official audits. |
| Perpetual License | Microsoft, Oracle, IBM, Various Traditional Software | A license allowing indefinite use of a specific software version, often with separate (optional) maintenance. |
| Processor License (Oracle) | Oracle | An Oracle licensing metric based on processor cores (adjusted by a factor) rather than named users. Common for database and server-based licensing. |
| SaaS License | Salesforce, Microsoft 365, Adobe Creative Cloud | A subscription-based model in which customers pay recurring fees to access software hosted by the vendor or a cloud provider. |
| SAM (Software Asset Management) | ITIL, ISO/IEC 19770, All Major Vendors | Practices and processes to control, optimize, and track software usage and licenses within an organization. |
| SAM Maturity Model | ISO/IEC 19770, Gartner, Forrester | A framework defining progressive levels of SAM capability (from reactive to optimized) that helps organizations benchmark and improve their asset management practices. |
| SAM Tool | SAM tool vendors | Software solutions designed to discover, inventory, reconcile, and optimize software assets and licenses. |
| Shelfware | Large Enterprises with Volume Licensing | Purchased software that remains unused or underutilized, leading to wasted costs and poor ROI on licensing investments. |
| Site License (Bulk License) | Educational Institutions, Large Enterprises | A license covering all users within a specific location or organization under a single agreement, enabling unlimited (or wide-ranging) deployments. |
| Software Asset Lifecycle | ITIL, ISO/IEC 19770 | The stages a software asset goes through, from planning and procurement to deployment, maintenance, and eventual retirement. |
| Subscription License | Microsoft 365, Salesforce, Adobe, Cloud Software | A license model where users pay recurring (monthly or annual) fees, typically granting access to updates and support during the subscription period. |
| Transfer Rights | Microsoft, Oracle, IBM, Software Publishers | The ability to move software licenses from one device/user to another or from on-premises to the cloud. Specific terms vary by vendor. |
| True-forward | Some Enterprise Agreements (e.g., VMware, Oracle) | A licensing mechanism allowing organizations to exceed purchased usage during a term, with the additional costs only reconciled or “trued forward” at renewal. |
| True-up | Microsoft Volume Licensing, IBM, Oracle | An annual or periodic process where actual usage is reconciled against purchased licenses, and any excess usage requires purchasing additional licenses or paying penalties. |
| UEM (Unified Endpoint Management) | Microsoft Intune, VMware Workspace ONE, IBM, Citrix | Centralized management of all endpoints (desktops, mobile devices, IoT) for software deployment, patching, and compliance, often integrated with software license tracking. |
| ULA (Unlimited License Agreement) | Oracle, Some Other Large Vendors | A contract allowing unlimited deployment of certain software for a fixed period in exchange for a set fee, with a certification or renewal at the end of the term. |
| Upgrade Rights | SAP, Microsoft, Oracle, IBM, etc. | Rights that let the licensee move from an older version of software to a newer version, often included in maintenance or subscription agreements. |
| Virtualization | VMware, Microsoft Hyper-V, Oracle VM, IBM LPAR | The creation of virtual (rather than physical) instances of servers, desktops, or applications, which complicates licensing (e.g., sub-capacity licensing, partitioning rules). |
| Volume Licensing | Microsoft, Adobe, IBM, Oracle, SAP, etc. | Licensing programs designed for organizations requiring multiple licenses, offering discounts, flexible terms, and centralized management (e.g., Microsoft Volume Licensing). |
2. License metrics
Sources shown as plain text in the Citations column were linked in the original page but no longer resolved when checked on 2026-09-26.
| Metric | Associated with | Metric definition | Citations |
|---|---|---|---|
| Named User License | Enterprise software (e.g., Oracle, SAP) | A license assigned to a specific individual user. Each named person is authorized to use the software, requiring their own login/credentials. This approach ensures every user accessing the software has a unique license and that licenses are not shared among multiple individuals. | Oracle Software Licensing Basics |
| Concurrent User License | Enterprise software, floating licensing models | A model based on the maximum number of simultaneous users. For example, a 20-user concurrent license permits up to 20 active (concurrent) sessions at once; the 21st user must wait until someone logs out. This can be more cost-effective than named user licensing for organizations where not all individuals use the system at the same time. | Flexera Concurrent Use Licensing |
| Authorized User License | IBM software licensing | A user-based metric where each unique individual authorized to use the program needs their own license. Although the software can be installed on multiple machines, each licensed user is the only one permitted to access or operate the software under that license entitlement. | IBM Licensing Definitions[1] |
| Client Access License (CAL) | Microsoft server products (e.g., Windows Server, SQL Server) | A license permitting a client (user or device) to legally access a Microsoft server product. For instance, Windows Server typically requires a separate CAL for every user or device that connects to the server. CALs are purchased in addition to the server license to comply with Microsoft licensing requirements. | Microsoft Client Access Licenses |
| Per Seat License | Traditional on-premises licensing (user or device seat) | A model in which each “seat” (often referring to a workstation or user slot) requires its own license. The fee is charged for every installed instance or device running the software, regardless of the number of concurrent users. In practice, “per seat” is sometimes used synonymously with “per device,” though some vendors distinguish the two. | ISACA Software Licensing Concepts |
| Per Device License | Device-based licensing (e.g., Windows OS, device CAL) | A model in which each physical or virtual device that runs or accesses the software must have its own license. For example, a Windows device CAL is tied specifically to each computer, irrespective of how many different users log in. | Microsoft Licensing – Device CAL |
| Per Core License | Server software (e.g., Microsoft SQL Server, Windows Server, IBM DB2) | A licensing model priced by the number of CPU cores used by the software. For instance, Microsoft SQL Server requires a license for each core, sold typically in two-core packs. This metric often reflects modern multi-core CPU architectures, capturing the processing capacity rather than just the number of processor sockets. | Microsoft SQL Server Licensing Guide[2] |
| Per Processor License | Older or specific server licensing (e.g., Oracle Database pre-core model) | A model that licenses software per physical CPU or processor in the server. Each CPU socket typically requires a license and may allow an unlimited number of users on that processor. Over time, many vendors have moved from a simple “per processor” model to more granular “per core” or “core factor” models to account for multi-core CPUs. | Oracle Processor Licensing[3] |
| Processor Value Unit (PVU) | IBM (middleware and enterprise products) | An IBM-specific capacity metric where each processor core is assigned a certain number of “processor value units” based on the processor’s architecture. The total PVU requirement is calculated by multiplying the number of cores by their PVU assignment. Licensing costs scale with the cumulative PVUs. | IBM Processor Value Unit[4] |
| Core Factor | Oracle (core-based licensing) | Under Oracle’s core-based licensing, different processor types have a “core factor” multiplier to account for differences in performance and architecture. To calculate the number of licenses required, you multiply the total core count by the applicable core factor (e.g., 0.5 for certain Intel Xeon chips, 1.0 for others). The core factor table helps standardize licensing across various CPU designs. | Oracle Processor Core Factor Table[3] |
| Usage-Based Licensing | Cloud services, SaaS, software monetization | A licensing model where costs are based on the actual usage of the software or service. The usage can be measured in various ways, e.g., number of transactions, processing time, data volume processed, or function calls. This pay-as-you-go approach allows flexible scaling but requires consistent metering and reporting of usage. | AWS Marketplace Metered Billing |
| Pay-Per-Use | Cloud/SaaS offerings, on-demand software | Similar to usage-based licensing, costs are calculated based on real-time consumption. Instead of a fixed subscription fee, you pay in increments based on resource usage, e.g., API calls, data storage, or CPU/hours. This model is common in serverless and on-demand cloud platforms, ensuring organizations only pay for what they use. | Azure Consumption-Based Licensing[5] |
| API Call-Based Licensing | APIs and developer platforms (e.g., Google Maps, Twilio) | A model where customers pay (or account for license usage) based on the number of API requests made to a service. Fees often start at a certain tier with a specific call allowance, then additional charges apply as usage exceeds that tier. Useful for software monetization, microservices, or any product sold via calls to an endpoint. | Google Maps Platform Pricing[6] |
| SaaS-Based License | Software as a Service (Salesforce, Office 365, ServiceNow, etc.) | A subscription model for software delivered remotely as a service. The applications are hosted by the vendor or provider and accessed over the internet. Licensing typically occurs per user per month or year (or in some cases usage-based). Updates and support are included as part of the subscription, rather than requiring separate purchases or perpetual licenses plus maintenance. | Salesforce Pricing[7] |
| Term License (Subscription) | Most enterprise software (time-limited alternative to perpetual) | A license valid only for a specified duration (e.g., one year, three years). Once the term ends, users must renew or stop using the software. This is often more affordable short-term compared to a perpetual license but must be renewed continually to maintain usage rights. It frequently includes maintenance and support throughout the term. | Red Hat Subscription Model |
| Site License | Educational institutions, multi-user corporate environments | A license that covers usage by multiple users and/or devices at a single location or across an organization for a flat fee. It can allow unlimited installations within a designated site, department, or entire organization. Sometimes site licenses are restricted by the total number of concurrent users or some other cap, but often they are effectively “all-you-can-use” for that site. | IBM SPSS Site License (Academia) |
| Enterprise Agreement (EA) | Volume licensing for large organizations (e.g., Microsoft, Adobe) | A multi-year (commonly three-year) volume licensing contract that entitles a company to use a bundle of software products. EAs typically include enterprise-wide standards for software deployment and pricing based on the organization’s size (number of users or devices). They simplify license management and can offer cost savings for large deployments but require a broad commitment to the vendor’s product suite. | Microsoft Enterprise Agreement |
| Unlimited License Agreement (ULA) | Oracle (and similar large-scale vendor agreements) | A contractual agreement permitting unlimited deployment of specified products for a set period (e.g., three years). Customers pay a fixed fee upfront. At the end of the term, customers must certify deployments and either renew the ULA, negotiate a new contract, or revert to standard licensing. ULAs are beneficial if the software deployment grows significantly, but may be cost-inefficient if usage remains modest. | Oracle Unlimited License Agreement |
| Open Source License Compliance | Open-source software usage in commercial/enterprise settings | Ensuring all obligations for open-source licenses are met, such as distributing source code, providing attribution, or following notice requirements. Organizations track this metric to avoid legal risks, protect intellectual property, and adhere to community standards when incorporating open-source components. | OpenChain ISO/IEC 5230:2020[8] |
| OSI-Approved License % | Open-source projects (license compliance metric) | The percentage of a project’s code that is under an Open Source Initiative-approved license. A higher percentage indicates that the majority of the code meets the OSI’s Open Source Definition. This is sometimes used by organizations to gauge how strictly they adhere to widely accepted open-source principles. | Open Source Initiative Licenses[9] |
| Instance-Based License | Server deployments, virtualization, containerized environments | A license required for each “instance” of the software installed or running, regardless of how many users access it. An instance can be a single process, virtual machine, or container. If you spin up multiple instances (e.g., in different virtual servers), each instance typically requires its own license, even if they run on the same hardware. | Oracle Java SE Licensing FAQ |
| Container-Based Licensing | Modern container platforms (Docker, Kubernetes), Red Hat, IBM Cloud Paks | A metric that accounts for the number of containerized deployments or container images running concurrently. While relatively new, some vendors measure consumption based on container footprints (e.g., CPU/memory allotments). IBM Cloud Paks, for example, track Virtual Processor Cores (VPC) allocated to containers rather than physical servers. This model ensures license usage aligns with dynamic, containerized workflows. | IBM Licensing in Container Environments |
| Virtual Machine-Based License | Virtualized environments (VMware, Hyper-V), Microsoft, Oracle | A model that licenses each virtual machine (VM) the software runs on. Instead of licensing per physical server, each VM requires its own entitlement. This is common in heavily virtualized data centers, although some vendors allow “per host” or “per cluster” licensing to cover all VMs on that host/cluster. If not, each VM is counted separately, which can lead to complex compliance tracking. | VMware Licensing Guide |
| Sub-Capacity Licensing | IBM (sub-capacity rules), some other vendors | A method of licensing that allows software to be licensed only for the subset of physical hardware resources actually allocated to the software (e.g., specific partitions or LPARs). This means you don’t have to license the entire physical server if you’re only using part of its capacity. For instance, IBM’s sub-capacity licensing can reduce costs in virtualized and partitioned environments by licensing only the assigned CPU capacity rather than the full machine. | IBM Sub-Capacity Licensing[10] |
| License Utilization | Software asset management (SAM) teams, enterprise compliance | A metric that tracks how many purchased (or entitled) licenses are actually in use. It helps identify underutilization (“shelfware”) and potential non-compliance if usage exceeds purchased entitlements. License utilization is crucial for optimizing cost, ensuring compliance, and planning renewals or true-ups. | Gartner on Software License Optimization |
| Shelfware | Large enterprises with volume or bundle purchases | “Shelfware” refers to software licenses that have been purchased but never installed or used in production. Organizations track this to identify wasted spend, especially when they’ve acquired licenses via enterprise agreements or bundles that include multiple products. High levels of shelfware indicate an organization is not fully leveraging its investments and may seek to renegotiate contracts or reallocate entitlements. | IDC on Shelfware |
| FTE-Based Licensing | Academic (e.g., Microsoft Enrollment for Education Solutions), some enterprise models | A licensing model that calculates fees based on the number of Full-Time Equivalents (FTE) or employees in an organization. For example, universities often license software campus-wide by reporting how many staff and faculty members they have. This model simplifies compliance since it covers all users without needing individual tracking, but can be costly for institutions with large staff counts but lower actual usage. | Microsoft Enrollment for Education Solutions (EES) |
| Maintenance & Support Metric | Proprietary software vendors (e.g., Oracle, SAP, IBM) | Not a usage metric per se, but an annual or periodic fee paid to the vendor for technical support, patches, and product updates. It’s typically calculated as a percentage of the net license fee (e.g., 20–25% per year). Organizations track this cost and the associated services to evaluate the total cost of ownership of the software over time. | Oracle Support Policies[11] |
| True-Up | Enterprise Agreements, volume licensing (e.g., Microsoft EA) | The process of reconciling actual software usage with the number of licenses purchased. Often part of an annual or periodic “true-up,” during which the customer reports their usage above original entitlements. Additional licenses or fees are charged to bring the usage into compliance. This ensures that the final cost aligns with how much software was actually deployed over the period. | Microsoft Licensing True-Up |
Key takeaways
- User-based metrics (e.g., Named User, Concurrent User, Authorized User) tie licensing to the individuals who use the software, either specifically (Named) or by the maximum number simultaneously (Concurrent).
- Device/Hardware-based metrics (e.g., Per Seat, Per Device, Per Core, Processor Value Unit, Core Factor) charge for the hardware footprint (physical or virtual) on which the software runs.
- Consumption-based metrics (e.g., Usage-Based, Pay-Per-Use, API Call-Based) align cost with actual utilization, commonly found in cloud and on-demand environments.
- Enterprise licensing (e.g., Site License, Enterprise Agreement, Unlimited License Agreement) is for large-scale deployments, often covering wide usage under a single contract.
- Open-source metrics (e.g., Open Source License Compliance, OSI-Approved License %) focus on adherence to open-source license obligations and best practices.
- Specialized or newer metrics (e.g., Container-Based, Virtual Machine-Based, Sub-Capacity) address modern infrastructure realities like containerization and virtualization.
- License optimization metrics (e.g., License Utilization, Shelfware, True-Up) help enterprises manage costs and stay compliant.
Use these definitions and references as a starting point for deeper research into each vendor’s specific terms. Always consult official vendor documentation and, if possible, legal expertise to ensure full compliance and accurate interpretation of licensing agreements.