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Glossary

Quick-reference glossary clarifying key licensing, cloud, and cost-optimization terms—cutting jargon
and unifying your team’s Open iT conversations.
J
K
Q
W
X
Y
Z

A

Adoption Rate

Percentage of users who adopt software over time.

Agent

A component that collects software usage data. Also known as client.
Altair Units

Are a flexible, unified licensing system from Altair that provides access to their entire software suite and partner products through a shared pool of units, optimizing software utilization.

Annual Subscription

Software license paid yearly, usually renewable.

Audit

Review of software use for license compliance.

Audit Readiness

Being consistently prepared with records and reports to demonstrate license compliance in the event of a vendor audit.

Audit Trail

A chronological, tamper-evident record of changes within a system, crucial for security, compliance, and troubleshooting.

Authorized User

User with access rights to specific software or modules within a software.

B

Billing Automation

Percentage of users who adopt software over time.

Burn Rate
A component that collects software usage data. Also known as client.

C

Capacity Planning

Forecasting future software needs based on usage trends to ensure adequate license availability.

Capacity-based Metric

Metric based on consumed capacity units.

Chargeback

A method for tracking and assigning software usage costs to individual departments, cost centers, teams or projects.

Classification

Category assigned to software or data. In analysis it refers to all non-numerical values.
Check-out/Check-in

The process where users temporarily acquire (check out) and then release (check in) a software license from a central pool. This allows users to utilize software.

Cloud Procurement

Procurement of software via cloud platforms.

Compliance Audit

An external or internal check to verify adherence to software licensing terms.

Concurrent Tokens

Tokens shared among users for software access. Released tokens return to the pool.
Contract

A legally binding agreement between two or more parties that defines the terms and conditions related to the use, licensing, development, sale, or maintenance of software.

Contract Lifecycle Management

Managing software contracts from start to end.
Contract Renegotiation

The process where two or more parties who are bound by an existing contract agree to modify, amend, or completely rewrite some or all of its terms and conditions.

Copyright Infringement

Violation of software intellectual property rights.

D

Data Analytics

Analysis of software or license usage data.

Discovery Tool

Software used to identify and inventory software installed across an organization.

Distributor

Entity that resells or distributes software.

Dongle

Hardware key for software access control.

E

Elapsed Time

Total time taken from start to finish. Typically the time from a license check-out to the check-in.
Elastic Licensing

Flexible licensing scaling with usage.

End User License Agreement (EULA)

Legal agreement defining software usage terms.

End of Support

Date after which support for an application is unavailable.
Entitlement

The right to use a specific software product under the terms of a licensing agreement.
Financial management of cloud and IT costs.

F

FinOps

Financial management of cloud and IT costs.

Floating License

License usable by multiple users, one at a time.
Freeware

Software available at no monetary cost.

G

Governance, Risk, and Compliance 

Management of compliance and security risks. 

H

Hosted Applications

Apps hosted on a vendors infrastructure or cloud provider.

I

IT Governance

A framework that ensures IT investments support business goals, including policies for managing software assets.

ITAM

(Information Technology Asset Management) is a set of business practices that systematically track, manage, and optimize an organization’s IT assets throughout their entire lifecycle.

Idle License Detection

Identifying licenses that are checked out but not actively used, so they can be reclaimed or redistributed.

Intellectual Property

Legal rights protecting software creations.

L

License

Right or document to use a software product.

License Compliance

Ensuring that software use aligns with the terms of the license agreement to avoid legal or financial penalties.

License Consolidation

The process of centralizing and reducing redundant or overlapping licenses.

License Denial

Occurs when a user tries to access software but is blocked due to all licenses being in use.

License Entitlement

Occurs when a user tries to access software but is blocked due to all licenses being in use.

License Harvesting

Automatically recovering unused or idle licenses and returning them to the license pool for reuse.
License Inventory

A complete and current list of all software licenses owned, used, and deployed within an organization.

License Manager

Tool for managing and tracking licenses.

License Optimization

The process of adjusting license usage to ensure cost-efficiency and compliance.

License Pool

The total number of licenses available for a software application, usually shared among users.
License Reasignation

Changing license from one user to another.

License True-Up
A financial reconciliation process in which an organization pays for any overuse of licenses at the end of a licensing period.
LicenseAnalyzer (Open iT)
A software usage metering tool from Open iT that monitors, analyzes, and reports actual usage of software licenses across various platforms.

M

Maintenance and Renewals

Renewal and updates of software support.

Master Service

Main contract outlining service terms.

Max in Use

Maximum simultaneous software usage count.
Metric

Standard to measure software use or cost.

Multi-tenant Cloud Service

Cloud service used by multiple clients.

N

Named User

License assigned to a specific individual.

Network License

License tied to a local area network.
Node locked

License restricted to a specific device.

Non-Commercial Use License

License for personal or academic use only.

O

On-prem Applications

Software hosted on in-house servers.

Open Source

Software with publicly available source code.

Order Form

Document confirming a software purchase.

P

Perpetual License
License with no expiration date.

R

Reclamation

The practice of retrieving unused or underused software licenses for reuse.

Right-Sizing

Adjusting the number or type of licenses to better match actual usage needs.

S

SAM Tool

A software solution that supports the automation and tracking of SAM processes.

SaaS Subscription

License for cloud-based software access.
Service Level Agreement

(SLA) is a contract between a service provider and a customer that defines the level of service expected. It specifies measurable metrics (like uptime, response times, and resolution times), responsibilities of both parties, and consequences if the agreed-upon service levels are not met.

Shadow IT

Use of software, devices, or systems by employees without explicit approval or knowledge of the IT department.

Software Asset

A tracked software or license asset.

Software Asset Management (SAM)
A set of practices and tools used to manage, control, and optimize the purchase, deployment, usage, and maintenance of software licenses across an organization.

Software Asset Provisioning

Deploying or installing software assets.

Software Discovery

Finding and identifying installed software.

Software Lifecycle

The phases software goes through in an organization, from procurement and deployment to usage and retirement.

Software Metering

Tracking and analyzing software usage to guide license management decisions.

Software Usage Monitoring

Tracking how often, how long, and by whom software applications are used to inform license decisions.

T

Token Pool

Group of tokens used for license management.

Tokens

Unit used to measure license consumption.

True-Up

A periodic audit to reconcile license usage with entitlements, often with fees.

U

Usage Peak

The period during which demand for licenses is highest, often requiring more resources or better allocation.

User Lifecycle Management

Managing user access through lifecycle stages.

V

Vendor (or Publisher)

Entity that creates or sells software.

Vendor Analysis

The process of evaluating the number of software licenses currently in use, identifying opportunities to reassign license types or packages to optimize their utilization for users, and calculating the potential cost savings resulting from these adjustments.

Vendor Daemon
Process/service enabling license checkouts. Typically runs with a License Manager service, like FlexNet Publisher.
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We’ll show you how your business can benefit from Open iT solutions.
Please note:
By submitting this form you are agreeing to receive additional communications from Open iT. Your information will be processed in accordance with our Privacy Notice.