Brian Madden Logo
Your independent source for application and desktop virtualization.
advertisement
Hey Brian!'s Blog

Hey Brian: How does licensing work with streamed applications?

Written on Apr 28 2009
Filed under:
3,933 views, 6 comments


by Brian Madden

This post of part of the "Hey Brian!" series, where Brian answers questions submitted by readers.

Paul Sharp asks, I'm struggling with what's legal and what’s not when it comes to software licensing in the streaming software model. For example, if I have 200 users streaming a software and limit it to only 10 users at a time, do I need to buy 200 licenses or 10? The way I looked at it, you are installing it on the computer while you are using it, but uninstalling when you’re done so the next user can use it. What do you think?

It's too bad that it's taken ten years for the application software vendors to start to understand the concept of using Terminal Services to deploy their applications. Chances are that if you go back to them now and ask about how they license their software for streaming, they'll just look at you funny and say "huh?"

So in this case we're kind of on our own, and it's up to each of us to figure out what the right thing to do is. I like to take the role, "Given what I know about the vendor's licensing model for non-streamed apps, how do I think the vendor would license their app if they totally understood how streaming works?" In other words, it's up to us to interpret the intention of the license agreement, even if the specific letter of the agreement is vague in the context of streaming.

For example, if a vendor licenses their software based on the number of devices on which it's installed, sure, you could argue that technically you don't have it installed on any more 10 devices at a time since you're limiting the number of concurrent usages. But are you doing the right thing in that case? It depends on your situation. If you have 200 users who could access the app, but the same 10 users use it again and again, then I'd say you're okay. But if you have 15 users who regularly rotate in and out and you're only licensed for 10, I'd say that you're actually emulating a concurrent licensing scheme while your vendor intended a device-based scheme. So in that case, I think that would not be right.

This gets even more strange when you try to figure out what a "device" is. Ultimately most vendors call a "device" the actual plastic and metal thing the users interact with to use their application. (This is why you need one license for each user in a Terminal Server scenario, even though the app is only "installed" once.) So even if you're using a single shared master disk image with VDI and then you're streaming apps on-demand at login time, the number of licenses you need in device-based licensing scenarios should be based on the number of different end user devices that a user connects from. Of course you could ask, "What about the user who connects from random devices across the Internet?" One could argue that you'd need to buy a billion device licenses for your app. In this case, device-based licensing is not the right fit, and you can probably circle back with your vendor to discuss your specific use case.

What's really too bad is that most streaming solutions are based on users, not devices. So if you have software that's licensed per device, then just the mere fact that you're streaming the app means you'll have to get, umm, "creative" with your implementation. Longer term, I think we're just going to have to move away from device-based licensing since the concept of a "device" is really breaking down. But that's a bigger challenge to the industry-at-large, so for now the best we can do is try to mimic that to the best of our abilities and hope that we pass the "straight face" test." (The "straight face" test is "if you can say it while keeping a straight face, then it's okay.")

By the way, software that's licensed on a user-basis is a simple. If it's based on concurrent usage, most of the various streaming solutions have the capability to limit concurrent usage out of the box. And for software based on total users (or named users), then again, looking back on the intentions of the vendors, it's probably best to license that for the total number of users who could use that app. (And that's easy enough to do by only making the software available to a specific AD group and then buying the number of licenses that match the number of users in that group.)

So that's my philosophical approach to application licensing in a streamed environment. What does everyone else think?

 

 

 

 

 

 







Comments

rahvintzu wrote re: Hey Brian: How does licensing work with streamed applications?
on Tue, Apr 28 2009 3:46 AM Link To This Comment

Well put Brian.

I wish vendors would move faster on this topic.

I think the end game is alot more vendors need to support more flexible models.

Adobe for example considered the product installed even if its streamed... its more about intent to them... does the client have the ability to use an app, ok its installed.

An interesting point not touched on is an application virtualisation solutions ability to have the app assigned per machine or per user.

App-v in streamed mode for example is per user, but App-v in SCCM allows you to target per machine via collection.

If you are interested in industry trends around licencing here is a nice report from SoftSummit for October 2008:

www.softsummit.com/.../2008KeyTrendsSurvey.pdf

Ewen Bruce wrote re: Hey Brian: How does licensing work with streamed applications?
on Tue, Apr 28 2009 4:01 AM Link To This Comment

I think your views are a fair reflection of where we are today, but I'm fairly confident that a lot of the software vendors, when we do actually get around to asking them, won't take the "straight face" approach to compliance as good enough. Experience has shown that compliance with the license conditions is what matters, not your intentions or interpretations (no matter how well founded on your perception of fairness). I believe most vendors are currently adopting one of two approaches; either they simply don't care about virtualized delivery because the market is so small (although its probably not as small as they'd like to think it is), or they're simply waiting to see what Microsoft will do. Whatever happens, they will do everything they can to protect their revenues (as you'd expect); over-deployment of unused software and inflexible licensing has been good for them over the years and its not a revenue stream they're going to give up in a hurry. On demand provisioning may be good for us, but its much harder for them to build a model for it, and they're not going to jump into it quickly without a clear view of where the money is going to come from and how they can measure and audit usage reliably. I believe MS will make some moves later this year, but I don't expect them to make the overall cost of application usage any more attractive than it is now.

Tim Mangan wrote re: Hey Brian: How does licensing work with streamed applications?
on Tue, Apr 28 2009 7:33 AM Link To This Comment

One of the most frustrating problems with app licensing I see is the inconsistency.  Especially with a large ISV (like Microsoft), if you ask the vendor for a determination of your license needs for a given scenario like this (or even just on TS) you will far too often get a different "authorative" answers from different customer facing employees who should know the "correct" answer to the question.  In the Terminal Server case, we have heard of authoritative answers that claimed you needed a license for any user that ever logs onto a terminal server with the app installed - whether or not they use the application, and other (?more reasonable?) answers from the same vendor.

This directly leads to the approach Brian mentioned - try to do what you think is right.  If you are going to go with that approach, it is important that you be prepared for an audit.  Being able to show that you are monitoring application usage, and have an established on-going process to review usage and "catch-up" with any license shortfalls goes a long way with the ISVs.

Ultimately, we need the industry to develop licensing models that can be clearly understood and implemented in the real world.  I believe "named user" licensing (regardless of involved devices) to generally be the most fair model for commercial software for both the ISV and the end-user.  Site/Enterprise licensing based on the gross number of employees is also a reasonable solution that is easy to determine.

I certainly hope that EB is correct regarding Microsoft, however I remember having conversations with them 8 years ago when MS was going to take the lead in this area and am still waiting.

Sar Haidar wrote re: Hey Brian: How does licensing work with streamed applications?
on Tue, Apr 28 2009 4:48 PM Link To This Comment

From a University standpoint, licensing all 20,000+ students would be out of the question or buying a site license for each piece of software so that 10 people can use it. We've been using Softgrid for the past 3-4 years and what suits us most is using concurrent licenses. We can assign an app to all users or a class group and buy a certain amount of concurrent licenses based on usage.

As for apps running on TS (other than the specifics for each app and the way the vendor handles TS licenses), we were told by our Microsoft Rep that students are covered under the external connector license, which sure is a big money saver.

Clayton Price wrote re: Hey Brian: How does licensing work with streamed applications?
on Wed, Apr 29 2009 5:54 AM Link To This Comment

We've got an interesting scenario with TS/XenApp. We control access to published apps via Group Membership however for example, if you are in your XenApp published email client (Lotus Notes) and open an attachment which is associated to an app eg. Microsoft Project. It will open Project regardless if you are in the AD group or not!

I'm not a tech so there may be an easy way around this. I'm led to believe that because the mail client is calling the app and not the user, the current controls we have in place are bypassed.

Apparently the AppSense boys can sort this out and their approach is supported by Microsoft (of course it is!) !! It was in the marketing powerpoint slide anyway ;-)

Gareth Kitson wrote re: Hey Brian: How does licensing work with streamed applications?
on Wed, Apr 29 2009 9:18 AM Link To This Comment

Hello..

..As mentioned, yes, many Microsoft applications, including Microsoft Office™, Project™ and Visio™, are licensed on a per-device basis. This means a desktop application license is required for each and every device that is able to access the application or server where the application is installed or streamed from.  

One misconception mentioned in this comments chain, is that by ‘publishing’ or 'streaming' applications to a limited "user" group, that group is compliant with the Microsoft license agreement.  

‘Publishing’ or 'streaming' applications to a limited "user" group is not valid, since users in the group can access the application from any device that can connect to the server hosting the application binaries, or, any device the server can stream to.

Furthermore, Group Policies and Software Restriction Policies cannot be used, as these apply to "users", or groups of "users".   Access must be controlled at the “device” level.

Clayton, you kindly mentioned AppSense Application Manager, thank you.  To elaborate on this, Application Manager is Microsoft approved for controlling application access on a per device basis. (Clayton, also blocking MS Project which is spawned from opening email attachment)..

(I do not intend for this to be a product pitch, I am just making you aware of further information on this topic) - To learn more about Microsoft Licensing and AppSense, please visit www.appsense.com/.../licensemanagement.aspx    

A copy of the whitepaper can be found at www.appsense.com/.../Windows%20Terminal%20Server%20Software%20Licensing%20Control%20(US).pdf

With this in mind.. it seems most of us here agree, a concurrent or named user based licensing model would certainly make life a little easier… just pay for the users who are using the app’s.. (but until then.. we must remain compliant :-) )  

Many thanks

Gareth Kitson

AppSense.

(Note: You must be logged in to post a comment.)

If you log in and nothing happens, delete your cookies from BrianMadden.com and try again. Sorry about that, but we had to make a one-time change to the cookie path when we migrated web servers.