A token-based license is one of the types of software licenses under a pay-per-use model.
It is categorized under network licenses and can be shared among a large number of users over a specific period.
Customers purchase a pool of tokens to pay for the usage of a certain product. Token pools come in two types.
The first type reduces the pool when tokens are consumed; they are no longer available for other users.
On the other hand, the second type replenishes when the User terminates his/her access.
How many tokens are needed for the use of each product will depend on the vendor’s specifications.
Why Should You Purchase Token-Based Licenses?
Token-based licenses support a composable mindset; it offers speed, agility and resilience in the face of a continuously changing market.
According to Gartner, the three building blocks of a composable business – composable thinking, business architecture and technologies – enable organizations to pivot quickly in these uncertain times.
Tokens improve business speed, agility, and resilience by providing access to a complete software suite.
Multiple users can use the tokens as long as there is a sufficient pool. In addition, management can modify their business plans and quickly utilize the right feature that aligns with their new goals.
How Can You Maximize Your Tokens?
Track and Analyze License Usage
Since access to products will depend on the availability of the tokens, monitoring the license usage of each user is imperative.
Through tracking token usage, you can identify the circumstances that hinder productivity, such as the existence of license hogs and inactive usage.
In addition, vendors offer token licenses under fixed-term contracts.
Any unused tokens will expire and will not be carried over to the next term.
Therefore, maximizing the use of your tokens is crucial to minimize any unnecessary costs. This also eliminates obstructions to the workflow due to insufficient tokens.
Generate Usage Reports
Now that you have the software usage data, you can now generate reports that are relevant to different stakeholders.
These could range from a total license usage to a user/host level report.
Is the purchase of additional tokens necessary to support your global operations?
Generated heatmap reports can provide your organization with a different perspective.
Visualizing data makes it easier for managers to make decisions on how to improve their asset allocation, budget management, and process planning.
Negotiate Vendor Contracts
As previously mentioned, token licenses have an expiration date.
To avoid over or under purchasing tokens, it is important to have critical information at your disposal during negotiations by metering the usage of each product and simulating different license agreements.
Reports on software usage can forecast the number of tokens needed for certain projects or for a specific period in a year.
This helps companies gain competitive advantage through cost optimization.
About Honeywell Token-Based Licenses
Honeywell is a multinational conglomerate that covers a wide variety of industries, from aerospace and manufacturing to retail and safety.
It offers several solutions including the UniSim® Design Suite.
As a process modeling solution, it enables engineers to simulate process designs, generate safety studies, monitor asset performance, and optimize production workflows.
The Honeywell ULM manages the UniSim® Design Suite. The software comes in three types of licenses – standalone, network, and token.
Purchasing token-based licenses for Honeywell’s UniSim® software is beneficial to organizations who need flexibility in their IT assets.
It also allows companies to try out new products before committing to a long-term purchase.
For example, the UniSim® software family contains premium products, such as the UniSim® Design, the UniSim® Flare, and the UniSim® Blowdown Customize. Suppose your organization has an on-going project that requires the intensive use of UniSim® Design and UniSim® Flare for a few months.
However, the next project will require the use of UniSim® Design and UniSim® Blowdown Customize for only a week or two.
Tokens allow users to handpick the products that they need for a specific project. As a result, they avoid the risk of being locked in a license that they may not use for an extended period.
Open iT and Token Licenses
Open iT supports the monitoring and reporting of token-based Honeywell licenses.
It collects debug log files containing license information and usage from the Honeywell Unified License Manager (ULM).
These are aggregated with usage data from a variety of other sources for a complete software usage information.
A token-based license is an asset for clients who need flexible licensing models.
However, without proper monitoring of your total license usage, these can lead to unnecessary expenses.
Learn more about how Open iT can help you with your software license management and optimization. Connect with an Open iT Business Solutions Consultant today.