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Negotiating the right software licensing arrangement is essential for keeping software costs within manageable limits and maximizing the return on investment (ROI). There is a tendency for IT managers in small enterprises to simply go with standard terms and conditions. To make a smart selection, IT managers need to know which of the available licensing offerings best suit their needs. This note provides a review of the benefits and drawbacks of the following licensing arrangements:

  • Node-locked licensing: hardware-based and end user-based.
  • Server-based licensing.
  • Site-licensing.
  • Subscription licensing.
  • Utility-based licensing.

Take control of vendor negotiations by gaining a better understanding of vendor licensing arrangements.

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