Understanding Concurrent User Licensing

When it comes to software licensing, there are many different models that software companies use. One common type of license places limits on the number of concurrent users who can access or use the software at the same time. This is known as a concurrent user license.

What is a Concurrent User License?

A concurrent user license allows a certain predetermined number of users to access or use the software simultaneously. For example, a company may purchase a 100-user concurrent license for a piece of software. This means up to 100 employees can be logged into and using that software at the same time.

The key word here is “concurrent.” It doesn’t matter how many total licensed users the company has – the software can only be used by the predefined number at any given moment. So if the company has 300 employees licensed to use the software, only 100 of them can actually use it at once based on the concurrent user limit.

How Does It Work?

When a user tries to log into the software, the license server checks to see how many seats or user connections are currently in use. If the number of concurrent users is already at the license limit, the server will not allow additional logins until someone logs out to free up a seat. The server tracks and manages the number of concurrent connections.

From the end user’s perspective, they simply see access denied messages if the concurrent user limit has been reached. The IT administrators can configure most license servers to display messages about the current usage levels so users know what is happening.

Key Benefits

There are a few key benefits to concurrent user licensing models:

• Cost-efficiency – Companies only pay for the maximum number of simultaneous users needed, rather than the total number of potential users.
• Flexibility – Concurrent licenses allow companies to flex their software usage up or down as needed. The license count can be increased if more concurrent users are needed.
• Predictability – Companies know exactly how many concurrent licenses they need to purchase based on peak usage times. This makes budgeting easier.

When Does It Make Sense?

Concurrent user licensing works best for software that will be used on a shared basis by a group that exceeds the peak number of simultaneous users. Examples include software for call centers, engineering teams, and office professionals. It allows these teams flexible shared access without overspending on licenses.

This model may not work as well where the number of total users is always relatively close to the number of concurrent users. In those cases, individual licenses may be more cost effective.

Conclusion

Concurrent user licensing limits the number of simultaneous users while providing flexible access. For software with a larger user pool sharing access, it can help control costs while meeting peak demand. Careful planning is needed to pick the right concurrent user limit.

Choosing the Right Concurrent User Limit

When purchasing concurrent user licenses, one of the biggest challenges is determining the appropriate number of licenses. Companies need to strike a balance between having too few licenses and limiting access vs. overspending on too many unused licenses. Here are some tips for choosing the right concurrent user limit:

• Analyze peak usage – Review usage logs and statistics to understand the maximum number of concurrent users during peak times. Adds 20-30% buffer for growth.
• Plan for growth – Factor in expected company growth rather than just current usage. Avoid limits that may constrain usage.
• Consider use cases – How many users need access for typical use cases? e.g. the entire claims department logging in each morning.
• Interview team leads – Ask managers of teams how many simultaneous users they expect during key workflows.
• Assess costs – Weigh the costs of adding more licenses versus potential productivity impacts of too few licenses.

It often takes some upfront analysis and discussion to arrive at the right concurrent user limit. But it ensures the company is adequately licensed without overspending on unused seats.

Managing Concurrent Licenses

Once concurrent user licenses have been purchased, companies need policies to manage usage within the limits. Strategies include:

• Limiting logins – Only allow licensed users to log into the software.
• Setting usage schedules – Establish times when certain groups can use the software.
• Auto-logoff settings – Configure sessions to auto-logoff inactive users after defined periods.
• Load balancing – Distribute usage loads to stay within limits during peak times.
• Alerting – Send alerts as concurrent licenses near the limit to prompt logoffs.

Well-managed policies ensure different groups get access when they need it without exceeding license limits. It helps companies fully utilize the licenses they are paying for.

Troubleshooting Concurrent License Issues

Despite best efforts, companies may still run into concurrent license problems like denied logins or lagging performance. Troubleshooting tips include:

• Checking license usage – Verify usage isn’t already at the limit during that time.
• Reviewing policies – Ensure usage policies aren’t overly constraining access.
• Increasing limits – Purchase more concurrent licenses if needed for growth.
• Load testing – Test for performance impacts as limits are approached.

Proactive troubleshooting and capacity planning are key to ensuring a concurrent licensing model keeps pace with business demands.