What is a License Pool (floating license)?

In software licensing, a License Pool represents a fundamental concept within floating licensing or concurrent licensing models. It functions as a centralized repository containing a predetermined quantity of available licenses that end-users throughout an organization can dynamically check out and utilize based on their immediate requirements.

The process begins when an individual attempts to launch a software application that implements this licensing model. At that moment, the application automatically initiates a request to the License Pool for an available license. If the pool contains an unused license, that specific license is temporarily checked out and assigned to the user, allowing the application to initialize and become fully operational.

However, if all licenses within the pool have already been allocated to other users, the application will be unable to start, displaying an appropriate notification to the user. The License Pool maintains its dynamic nature through an automated return mechanism - licenses become available again for redistribution either when current users terminate their application sessions, thereby releasing their licenses back to the pool, or when the allocated licenses reach their predetermined expiration time, automatically returning to the available state for other users to access.