What is per seat licensing?

Per seat licensing is a type of software licensing where the licensee pays for a specific number of users or seats that can access the software. This model is commonly used for enterprise software, where organizations need to track and manage software usage for a large number of employees.

Under per seat licensing, the licensee typically pays a fixed fee for each user or seat, and this fee may or may not include ongoing support or upgrades. The number of seats purchased can be adjusted as needed, with the licensee either adding or removing users from the license.

Per seat licensing can be advantageous for both the licensee and the licensor. For the licensee, it provides a predictable and transparent pricing model, making it easier to budget for licensing costs. For the licensor, it ensures they are being properly compensated for the use of their software, while also making it easier to enforce licensing terms and prevent software piracy.

However, per seat licensing can also be complex and may require specialized software to manage and track usage. Additionally, it may not be ideal for businesses with a fluctuating workforce or those that need to provide occasional access to the software for non-licensed users.