Software Licensing Services

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Software Licensing Services

• University of Florida

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What is Software Licensing Services (SLS)?

• Software Licensing Services is a service of the
  Office of Academic Technology. Our goal is to
  assist UF departments and colleges in obtaining
  software to be used by its faculty, staff and
  students. By organizing bulk purchase agreements
  and managing academic site licenses, the SODA
  Shoppe is able to obtain software applications at
  a low cost with the greatest benefits possible.
  Though most of the software is limited to
  university use, the SODA Shoppe does possess some
  licenses that can be used by faculty, staff and
  students at home.

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How do we work?

• We maintain a web site listing software licenses
  managed by our service and including those
  managed by other UF departments and colleges.
  http//software.ufl.edu
• In conjunction with other department
  representatives, we organize the bulk purchasing
  agreements and research and implement software
  site licenses for the University of Florida.

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How can you obtain our assistance?

• Software Licensing Services will survey and
  research software pricing requests submitted
  through our on-line request form.
  http//software.ufl.edu/request.html
• However, we do not necessarily attempt to
  negotiate licensing agreement for every software
  product. In many circumstances this is not
  realistic.

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Three rules dictate our participation in a
software licensing agreement?

• Rule One A request for the exploration of a
  software licensing agreement must come from a
  representative of a department or college within
  the University of Florida. We do not respond to
  inquiries made by vendors. To do so would create
  the appearance of a conflict of interest.

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Three rules dictate our participation in a
software licensing agreement?

• Rule Two We will only attempt to negotiate a
  licensing agreement if there is a sufficient
  saving to the university. Negotiations for one or
  two licenses for a savings of a few of dollars.

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Three rules dictate our participation in a
software licensing agreement?

• Rule Three Our service will assume the role of
  Site Licensing Manager of any license we
  negotiate if it is to the benefit of the
  university and the participants in the license
  agreement.
• The participation of departments and colleges in
  our licensing agreements is strictly voluntary.
  However, each department participating in one of
  our licensing agreements is requested to
  designate a licensing representative for their
  department.

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How is supervision and control over a license
managed by SLS?

• Aside from monitoring applications with metering
  applications and restricting access to licensing
  authorization codes and files, we maintain two
  contracts within every department participating
  in one of other licensing agreements.
• These two contacts are referred to as the
  Department Liaison and the Fiscal Contact.

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What role does the Department Liaison play in our
licensing agreements?

• The Department liaison is responsible for the
  software license within their department. This
  person will be our contact in regard to licensing
  issues such as product registration, upgrade
  announcements, renewals, order submissions, and
  the authorization of technical contacts within
  the department.
• Violations of licensing rules and restrictions is
  brought directly to the Department Liaison. All
  media and software installation keys are will be
  sent to the Department liaison for internal
  distribution.

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What role does the Fiscal contact play in our
licensing agreements?

• The fiscal contact is the name of a fiscal or
  office employee that can assist SLS staff
  resolving any accounting issues and any order
  form inconsistances.

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What is a software licensing agreement?

• A software licensing agreement is a legal
  contract between the software buyer (users) and
  software manufacturer (and/or manufacturers
  reseller). The exact composition of the agreement
  varies. It is best to think of a licensing
  agreement consisting of three parts
• The master agreement
• The End User License Agreement (ELUA)
• The software product.

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Master agreement

• Explains the conditions of sale. Generally, it
  explains the cost of acquiring the licensing
  agreement, the software being licensed, who can
  use the software, for what purposes the software
  can be used, the conditions of the maintenance
  contract and tech support services, and how the
  software can be installed and accessed by users.

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End User License Agreement (ELUA)

• The End User License Agreement (ELUA) explains
  specific rules and restrictions governing the use
  of the product being licensed such as the
  classifications of illegal usage and the
  termination of the users right to use the
  software, conditions of redistribution of the
  software, rules and restriction governing how the
  software can be incorporated into another
  product, and disclaimers of warranties.

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Software product

• The software product also brings implicit
  conditions of use and performance capabilities.
  The expectation that the software can perform
  under every circumstance and condition should not
  be a certainty. For example, Windows applications
  such as Microsoft Office and Microsoft Excel may
  not work with every product that can emulate the
  Windows operating system such as the Linux VMware
  and Win4L.
• Also the manufacturer cannot guaranty that their
  software can work with all other software
  applications on a computer system. For example,
  we do not recommend that you run two virus
  protection applications such as Symantecs Norton
  AntiVirus and Network Associates VirusScan on
  the same computer system. If you do, you will
  soon find out that these two programs can clash
  and slow down your computer.

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What are the most important issues to keep in
mind when purchasing software?

• Never make a software purchase without knowing
  what your user base needs. This can be a costly
  mistake. Purchasing a maintenance agreement when
  it is not needed or purchasing the wrong license
  type of the software product can cost you more.
• Clearly understand what you are buying. Make sure
  that the software will work under your current
  requirements and future requirements (if known).
  Know the software products limitations.
• Read the Master agreement (if present) and the
  end user license agreement (EULA). Make sure
  that what you are buying is clearly written in
  the contract.
• Never be rushed into making a purchase. In
  almost all cases, the vendor can wait for you to
  make an informed decision and their special
  discounts can wait as well.

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What types of licensing agreements exist?

• Licensing agreements come in many forms and the
  rules and restrictions governing the software
  they protect vary considerably. However, there
  are some general software licensing types. They
  are unofficially classified into four general
  types freeware, shareware, Open source,
  commercial and academic licensing. (Keep in mind
  that these descriptions are loosely defined and
  that the conditions of every license agreement
  regardless of classification should be clearly
  read.)

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Freeware licensing agreements

• Freeware licensing agreements allow the user to
  use the software freely at no cost. In most
  cases, the software can be distributed freely as
  well. However, it must be noted that free usage
  may be dependant upon a special condition such as
  The user may use this software at home free of
  charge for personal use. Commercial use requires
  a license.

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Shareware licensing agreements

• Shareware licensing agreements usually have a
  limit period of use. During this free period of
  use, the user is allowed to use the software
  without cost. However, at the termination of the
  free usage period, the user is required to buy
  the software or remove the software from the
  computer. In most cases, the software can be
  distributed freely as well. It should be noted
  that the installing and then reinstalling the
  software to continue use is usually considered a
  violation of the license agreement and should not
  be performed.

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Open source licensing

• Open source licensing is similar to freeware.
  Normally the software is free to use or there is
  a small charge to obtain the software on media.
  These software applications can be modified to
  the needs of the user as long as restrictions and
  conditions governing the use of the software and
  its development is adhered to. Open source
  licensing is based on the idea that all can use
  the programming code for their needs. Typically,
  Open source software relies on groups of
  programmers working together in organizations to
  maintain and develop the product.

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Commercial licensing agreements

• Commercial licensing agreements are seen all the
  time in stores and in volume (or bulk) licensing
  agreements. A vendor (or manufacturer) sells the
  software online or in a store. Development and
  sell of the software is a business enterprise.
  Anyone can buy the software and use it for their
  personal or business needs. The license
  agreement may cover multiple copies of the
  software. Redistribution of the product is
  forbidden. Microsoft, Corel, Mathsoft,
  Mathworks, and Symantec sell commercial software
  licensing.

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Academic (site) licensing agreements

• Academic (site) licensing agreements are
  specifically designed for the academic
  environment. Manufacturers normally extend
  special pricing to those in academia to encourage
  the use of their software. Licensing usually
  takes the form of Academic Volume Licensing
  Agreements (software is purchased in large
  numbers) or as Academic Site Licensing Agreements
  (unlimited use of the software for a set price).
  Commercial use is usually prohibited. However,
  academic research is allowed in most cases.

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What are the benefits and disadvantages of
perpetual and lease licensing?

• Before discussing the Pros and Cons of perpetual
  licensing vs. lease licensing, one must first
  understand most licensing agreements do not
  include the sell or ownership of the software
  rather the licensing agreement sells the right to
  use the software. So when we discuss perpetual
  and lease licensing agreements, we are
  essentially discussing the term of usage.

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What is perpetual licensing?

• Perpetual licensing is the purchased right to
  use a software product for an indefinite period
  of time with the proviso that the user abides by
  the rule and restriction governing the use of the
  software normally outline in the products End
  User license Agreement. Perpetual licensing cost
  more than lease licensing at its commencement.
  The upgrade or maintenance agreement for a
  perpetual license is usually lower than a lease
  license renewal.

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What is lease licensing?

• Lease licensing is the purchased right to use a
  software product for a limited period of time
  with the proviso that the user abides by the rule
  and restriction governing the use of the software
  normally outlined in the products End User
  license Agreement. Lease licensing cost less
  than perpetual licensing at its commencement. The
  renewal cost of a lease license is usually higher
  than a perpetual license renewal.

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What are the benefits and disadvantages of
perpetual and lease licensing?

• Perpetual and Lease licensing agreements are
  usually employed by software developers with
  large commercial application such as SAS, SPSS,
  Oracle and Microsoft. Normally there is no
  difference in the software being provided through
  each agreement. The only differences in these
  agreements are the cost and the term of usage.

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To make an informed decision as to which license
agreement is best, one must find the answer to
the following questions

• How many months or years is the software needed?
  If your software need has a short life span and
  the software will not be used after the need has
  end, then looking at a lease agreement is
  advised.
• Will you require the most current release
  (version) of the software when it is made
  available buy the vendor? If your answer is No,
  then lease perpetual pricing may be best. If your
  answer is Yes, then you will need to know what
  the maintenance cost (upgrade cost) of a
  perpetual licensing agreement will be in the
  future. Term of use will play a deciding factor.
  
• What are the life spans of the lease and
  perpetual licensing agreements?
• What is the cost of a lease agreement and its
  renewal costs? What is the term of the lease
  agreement?
• What is the cost of a perpetual agreement and its
  upgrade costs? What is the term of the Upgrade
  period (if any)?
• What is your funding for the software? If you do
  not have enough funds to cove the initial
  purchase of a perpetual licensing agreement then
  a lease agreement may be the only option.

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Cost Benefit Analysis

• After you have gathered this information, then
  you will need to perform a cost benefit analysis
  to make a decision. This is easier than is
  sounds. For example lets take the following
  information about GOTCHA software and perform a
  simple cost benefit analysis.
• The GOTCHA perpetual licensing cost for 100
  licenses is 25,000.00. The maintenance agreement
  has a year to year term and the maintenance fee
  is projected to be 2,500.00 (with a 15 increase
  in the maintenance fee each year).
• The GOTCHA lease licensing cost for 100 licenses
  is 9,000.00 The leasing period is also a year to
  year term and the leasing fee is projected to be
  6,000.00 (with a 5 increase in the maintenance
  fee each year).

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Cost Benefit Analysis
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Cost Benefit Analysis

• As you can see, only in the 6th year will the
  perpetual licensing agreement be better than the
  lease agreement. If the department did not
  require upgrades for the software, then the break
  even point in determining to choose perpetual
  licensing over lease licensing would be in the
  4th year.
• Clearly, lease licensing is the best choice
  within a 4 year time frame and a good argument
  can be made for 5 years if you take into account
  the excess money spent on perpetual licensing in
  the first year. 15,000 could have been spent on
  other opportunities. Also, it is likely that the
  software company will change its pricing model
  within 5 years and you may have the opportunity
  to change to perpetual licensing.

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What are the benefits and disadvantages of
concurrent (floating) licensing vs.
non-concurrent (node-locked) licensing?

• Concurrent (or floating) licensing and
  non-concurrent (or node locked) licensing options
  refer to how a software license is installed and
  how many people can use the software at one time.
• Concurrent (or floating) licensing allows the use
  the software on a network so that several
  workstations can access the program at the same
  time provided that the number of users never
  exceeds the number of licenses owned.
• Non-concurrent (or node locked) licensing only
  allows the software to be installed on one
  computer system. The license cannot be shared.

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What are the benefits and disadvantages of
concurrent (floating) licensing?

• Concurrent licensing allows you to save money by
  buying the number of licenses equal to the number
  of simultaneous licenses used by the department.
  Usually a 4 to 1 or 3 to 1 ratio can be achieved
  though metering.
• You can quickly add software to one of your
  computers without having to immediately buy new
  licensing.
• Concurrent licensing requires that the
  network/licensing support group to run additional
  software to meter and limit the software. Many
  companies provide FLEXlm keys to those running a
  FLEXlm server and some companies provide their
  own metering software. In some cases, the
  metering software is left up to the end user to
  provide.
• Closer supervision of the licensing is required
  to determine whether or not you are getting close
  to your licensing limit.
• Since the software uses a server application to
  meter and limit usage of the software, your
  department runs the risk of the software not
  being available when network connectivity is
  lost. With stand-alone licensing this is not
  necessarily true.
• If you have to provide metering software, then
  the cost of the metering software must be added
  to the overall cost of the licensing when
  comparing costs between Concurrent and
  non-concurrent licensing.

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To determine whether or not it is best to buy
concurrent licensing or non-concurrent or
node-locked licensing, you will need to ask the
following questions of your Network/Licensing
Support group.

• What type of metering software does the vendor
  provide?
• If metering software is provided by the vendor,
  can and will your Network/Licensing Support group
  run the metering software? If the answer is No,
  then you must use node-locked licensing.
• If metering software is not provided by the
  vendor, can and will your Network/Licensing
  Support group run some form of metering software
  for you? If the answer is No, then you must use
  node-locked licensing.
• If you need to provide your own metering
  software, then you must perform a simple cost
  benefit analysis including the cost of the
  metering software to determine which licensing
  choice is best.

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Cost Benefit Analysis

• For example You need 50 copies of GOTCHA
  software for 50 computers. You believe that you
  can satisfy your licensing needs with 20
  concurrent licenses. The cost is 50.00 per
  non-concurrent (node-locked) license and 100.00
  per concurrent (floating) license. Metering
  software cost 100.00 for the server and 10.00
  per client that is installed on the workstation.
• The following is a cost benefit analysis of the
  given information

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Cost Benefit Analysis
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Summation of Cost Benefit Analysis

• As you can see in this example, a savings of
  50.00 can be realized by using concurrent
  licensing. However, one can make a strong
  argument that paying 50.00 extra would simplify
  matters greatly. Thus avoiding an over complex
  solution. However, if your licensing needs were
  to increase then the saving would increase from
  somewhere around 20.00 to 120.00 for every 3
  license purchased. Also your, ration would change
  from 3 to 1 to 4 to 1 licenses.

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What is the purpose of a maintenance agreement
and when is purchasing one the best option?

• There are three keys to deciding on buying a
  Maintenance Agreement.
• One will your faculty and staff need the most
  current version of the software when it comes
  out?
• Two what is the cost to upgrade the license
  should you not choose to buy a maintenance
  agreement?
• How many times has the software developer
  upgraded the software?

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Some software licenses managed by Software
Licensing Services

• Statistical software SAS, SPSS, SigmaPlot,
  Minitab, and Amos
• Mathematical software Maple 8, Matlab r12,
  and MathCAD
• Architecture, Engineering, and Construction
  software AutoDesks AutoCAD Suite.
• Production and Publishing software Adobe
  applications and StarOffice
• Operating System licensing agreements The
  Compaq/Digital Campus-wide License Grant Program
  and the Sun ScholarPac Campus License and
  Maintenance Program.
• Virus Protection software Virus Scan
  anti-virus software,
• Connectivity software Hummingbirds
  HostExplorer, Starnets X-win32, SSH Secure Shell