Introduction
Earlier, when the computer industry came to know that the software application on the internet had impacted them, the companies licensed their software then switched to cloud license management. But still, companies are facing the issue because there was no standard description of charges applied over the cloud network for using the application.
Whenever a client purchases a software application or subscribes to using a software product, that software application is based on some terms and conditions. These agreements are also known as EULA (End User License Agreement).
Most of the time, the subscription price of software is directly linked to the License or EULA.
Given below are some requirements which are necessary to present in a license agreement or EULA:
- Software should get installed in any system at any number of times.
- The client should own it.
- It should empower many networks.
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The independent software having any perimeters can be visited.

Source: License management in Depth
Challenges in License and its management in Cloud
Many issues which are faced in license management of cloud computing are of advanced version as compared to the earlier versions:
- Licensing terms and conditions lag shifting business models and technologies. Business models include leasing, rental, outsourcing, etc.
- Licensing models are based on challenging metrics to control and measure—for example, client access licenses, rather than a simplistic ‘per-install’ metric.
- Challenges include discovering installed software and how many times it is used, mainly in virtual environments.
- Challenges in managing the licensed, purchased inventory include knowing what is owned and following the associated terms and conditions of given mergers of world dynamics, reorganization, and divestitures.
- Challenges involve complex and mixed ownership of the license entitlement. For example, software and client-server are owned by separate entities.
- It is worth noting that licensing is not a problem for technical people, but it can be for others.
- The outsourcing mindset is that license management and compliance are the other party’s responsibility, whether provider or consumer.
In Cloud Computing, license management does not exist on its own. A significant infrastructure of the servers, PCs, mainframes, etc., will present the running need to manage licenses in the surrounding. Upcoming license terms and conditions allow the permit to be used by changing between traditional and Cloud platforms. It also will closer usage of the complete license management system.

Source: Adobe Stock
Many companies typically address license management with many different approaches, with the procedures for cloud environments simply complex versions of the typical behavior. Sourcing and contractual approaches are attempts to reduce the need for license management. The mashup approach is a realistic description of the current processes used to manage licenses across the complex infrastructure of the Cloud actively.