Software is often purchased either per seat or per user. Software that is purchased per seat is chosen because of shift workers sitting at the same computer. When software is purchased per user, the license can define named users or concurrent users. If software is purchased as a named user, then a license is used and tied to each user using the system. Most software companies will allow a percentage of licenses that can be recycled. If software is purchased as a concurrent license, at any given point in time the number of users accessing the software must not exceed the total number of licenses purchased. Some software packages require a licensing service to be installed for centralized licensing. The licensing service is typically used for concurrent licensing of software. When the number of concurrent users is exceeded, the software will not activate, and any new users will be denied accessed.
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