Glossary of Software Licensing Terms

  • Academic Version
    Software available to schools.  There may be usage restrictions (who can purchase and how they can use the software).
  • Annual License
    License is good for one year, sometimes the software expires after the year and action may be required to continue usage.
  • Boxed Good
    Plastic wrapped software usually in a box purchased over the counter or off the shelf.
  • Capacity Based License
    Licensed model based on the potential use of the software dependant on the type of computer you are using the software on. 
  • Click Through
    Software where the license agreement is presented during the install or download.  Typically you have to click “I agree” to install the software.
  • Click Wrap
    Software where the license agreement is presented during the install or download.  Typically you have to click “I agree” to install the software.
  • Client Access Licenses (CALs)
    Permits access to a server based program from a client system.  One CAL is required for each client system.
  • Concurrent License
    Maximum number of users that can utilize an application simultaneously. Metering tools are usually required.
  • Enterprise License
    License that is designed to cover the entire enterprise. 
  • EULA
    End User License Agreement
  • Freeware
    This software is available free of charge – usually via the internet. 
  • Funded Software          
    Software that is typically low cost or free, funded by central UI funds, ITS or other departments.
  • Home Use (Faculty and Staff)
    Right to use the software used on campus at home for work related business.
  • License
    Contract that mandates the usage of the software (who, how and where the software can be used).  Defines what can or cannot be done with licensed software as defined by the vendor.
  • Maintenance
    Period license renewal that entitles you upgrade during a defined period of time.  Typically you purchase maintenance on an annual basis and it allows you to upgrade at no additional cost for the next year.
  • Media
    Actual physical software, most common media types are CDs and DVDs.
  • Metering
    Process by which the enterprise is required to track the actual distribution and use of the software.  Sets a specific limit to who, where and the number of users allowed to use that software. 
  • Named User License
    Every person who uses the application must be registered as a “named user” and have the appropriate licenses.
  • Network License
    Local area network or wide area network based license.  Software is available via the network.
  • Perpetual License
    Non-expiring rights to software usage.
  • Processor Based License
    CPU based, per processor, capacity based licenses and pricing.
  • Retail Version
    General public software usually purchased at a retail store. 
  • Shareware
    Software that you “try out” for no fee for a set period of time.  If you choose to keep the software, you are directed to send payment to the copyright holder. 
  • Shrink Wrap
    Plastic wrapped software usually in a box purchased over the counter or off the shelf.   
  • Single User
    License permits a single installation of the product for a single user on a single device.
  • Site License
    License tied to a single physical or logical location. 
  • Software Acquisition Process
    Process set up with ITS Campus Software Program, The Office of the General Counsel and Purchasing to obtain software. 
  • Software Asset Management
    Business discipline by which companies optimize their investment in software assets by tacking and reconciling installed inventory, measuring of usage of products and integrating this information with contract and licensing data.
  • Software License Agreement
    Contract that mandates the usage of the software (who, how and where the software can be used).  Defines what can or cannot be done with licensed software as defined by the vendor.
  • Software Request Form
    Information needed to obtain software and negotiate agreements specific to the end user needs.
  • Support
    Eligible for technical support for a specified time frame.
  • Upgrade License
    License that allows users to upgrade to the most current version, usually at a better price point.
  • Volume License
    Licenses based on the number of systems or users, more volume usually bring better pricing.

Please email its-software@uiowa.edu if there is a term that you would like to see added to this list.