Licenses and their management in Cloud Computing

When a client gets subscribed to a shrink-wrapped software, that software subscription based on an agreement End User License Agreement (EULA). Mostly the subscription price to software is directly tied to the EULA in instances. End User License Agreement (EULA) may require that the software should satisfy the following criteria: 

• Installation of software can be performed at any number of systems.
• It empowers to arrange numeral networks.
• It is own by the client.
• The independent software vendor having any perimeter can be sited.

Earlier, computer industry has known that the utilization of categorized applications over the internet may impact the method in which organizations license their software, indeed it has. The issue is that there is no standardized description to how application accessed over cloud network will be charged. It can definitely be argued that the use of open source software is a successful model. The open source software is free to use and it can be supported as a line extension of a commercial product, or it can be paid for out of money received from other services like advertisement. 

Practically, cloud service vendors tend to license their application or service based on machine account or client, but the do it many ways which are different than a client might expect based on his experience with software and hardware. Many application and services are delivered by the service providers on the subscription basis, usage model, or both which tie it to the client. The impact of cloud computing on bulk software is quite arduous to measure. 

Managing cloud Licenses: 
There is various method which are convenient to the client in maintaining the licenses of the applications, software, and services that utilized by the client. With effective plans a client can manage cloud licensing. Below are the steps to control applications use in the cloud: 

1. Sync all license renewals – 
   By ending licensing renewals at the same time, administrator deployed with managing licenses become aware of approaching renewal times. This is necessary if the number of clients get subscribe or unsubscribe the services in the cloud throughout the year. With various cloud licenses, a group of expertise can sometimes may not remember one or more renewal dates or improperly renew a license.
2. Research licensing model before buying – 
   Licensing Models for different cloud service providers varies. Depending on the numerous virtual servers needed and the inclusive infrastructure, any model may be better. For example, Citrix Xen Server licenses clients as per-server model while VMWare licenses in a per-socket model.
3. Use a hybrid licensing model – 
   Many applications are licensed on a per-user basis, many are wrapped per-device and other may have particular levels. Each cloud licensing model has its own benefits as per the convenience of service provider and the client.
4. Negotiate agreements – 
   When working with a cloud service provider, always negotiate number, levels, and costs of licenses. Cloud service providers seeks for the clients for their business and many times will work to track the reasonable worth and licensing to meet the cloud needs of the client.

Source - 
BOOKS - Cloud computing Bible & Mastering Cloud computing