A quantitative look at software licensing for IT managers

Information vendors, buyers, and users often take the approach that the number of employees equals the number of licensed users. Unfortunately, although assuring virtually unlimited usage of the software or database, this approach can also come with an unlimited cost. A typical vendor contract might read something to the effect that "Vendor A agrees to provide unlimited access to database B for all 200 employees of Firm Z," a relatively straightforward approach. However, there is no logical reason to pay for unused information and access.