Usage-Based Licensing without Usage Data – Is it Possible?

By Mathieu Baissac If you are like most software or intelligent hardware companies, you are either offering or seriously considering licensing your products on the basis of usage. Sure, for most, perpetual licensing will not disappear anytime soon, but market forces and the long-term financial performance of your business make usage-based licensing inevitable and desirable. So what is the definition of usage-based licensing? IDC defines usage-based licensing as: Usage based pricing/ Pay-per-use (PPU) software pricing provides enterprises with an annuity license model where cost is based on metered use of a software resource. Cost is determined by a periodic measure...