Consumption-Based Licensing

Consumption-Based Licensing tracks and charges for actual software usage using units called consumption tokens, enabling flexible and fair pricing.

Key Features:

• Allocates tokens to license codes or users for purchasing software or features.

• Supports usage-tracked contracts and pay-as-you-go models.

Benefits:

• Aligns costs with value derived.

• Opens up new markets by making software accessible to light users.

Trends:

• Popular in SaaS and cloud services.

• AI/ML for usage predictions and dynamic pricing.

• Granular tracking, down to API calls or processing time.

Consumption-Based Licensing is ideal for organizations optimizing costs based on usage or offering flexible pricing to customers.