software licensing services university of florida

Software Licensing Services

University of Florida

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.

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.

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.

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.


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.


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.

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.

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.

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.

What is a software licensing agreement?

A software licensing agreement is a legal contract between the software buyer (users) and software manufacturer (and/or manufacturer’s 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.

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.

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 user’s 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.

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 Symantec’s 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.

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.

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.)

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.”

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.

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.

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.

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.

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.

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 product’s 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.

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 product’s 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.

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.

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.

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: let’s 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).

Cost Benefit AnalysisCosts per Periods Perpetual

Licensing Lease Licensing

Decision

1st Year - Acquisition Cost

$25,000.00 $10,000.00 Planned use for 1 year, lease.

2nd Year - Renewal/Maintenance cost


3rd Year - Renewal/Maintenance cost


4th Year - Renewal/Maintenance cost

$3,306.25 $6,615.00 Planned use for 4 year, lease. Upgrades not necessary, perpetual

5th Year - Renewal/Maintenance cost


Total Cost: $37,483.44 $35,860.75


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.

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.

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.

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.


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:


Node-locked Licensing

Floating Licensing

GOTCHA licenses 50 20

Cost of GOTCHA licenses $50.00 $100.00 X

Total cost of GOTCHA licensing $2,500.00 $2,000.00 =

Metering software licenses 0 20

Cost of metering client licenses $0.00 $10.00 X

Total cost of metering client software $0.00 $200.00 =

Metering server cost $0.00 $100.00

Total cost $2,500.00 $2,450.00 =

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.

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?

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: AutoDesk’s 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: Hummingbird’s HostExplorer, Starnet’s X-win32, SSH Secure Shell

software licensing services university of florida

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