The 10 Most Common Types of Software Licenses Used by Businesses in Indonesia

Every business has different software requirements. Some organizations need a license for a single user, while others manage hundreds of devices across multiple locations. That's why understanding the different types of software licenses is essential before making a purchase. Before searching for a software license, make sure you choose one that fits your operational needs—not just the lowest price.

The Most Popular Software License Options

• Businesses in Indonesia commonly use 10 major software licensing models, depending on their size and operational requirements.

• Software licenses may be based on users, devices, locations, or subscription periods.

• Choosing the wrong license can increase operating costs and complicate software compliance audits.

• Genuine software provides legal compliance, security updates, and official vendor support.

• Before selecting a software license, determine the number of users and your company's future growth plans.

The 10 Most Common Software License Types

In corporate software procurement, the following licensing models are among the most widely used.

1. Subscription License

Subscription licenses are billed monthly or annually and are commonly used for cloud-based services such as Microsoft 365, Adobe Creative Cloud, and various SaaS applications.

Their primary advantage is continuous access to the latest features, security updates, and official technical support.

2. Perpetual License

A perpetual license is purchased once and allows indefinite use of the software version acquired.

This licensing model is still widely used for engineering applications, CAD software, and certain desktop applications.

Before purchasing a software license, verify whether future version upgrades are included or require additional payment.

3. OEM License

OEM (Original Equipment Manufacturer) licenses are typically pre-installed on new desktops or laptops.

They are generally more affordable but cannot usually be transferred to another device.

4. Retail License

Retail licenses offer greater flexibility than OEM licenses because they can usually be transferred to another device according to the vendor's licensing terms.

This option is well suited for professionals and small businesses that regularly upgrade their hardware.

5. Volume License

Volume Licensing is a popular choice for medium-sized and large organizations because it allows businesses to purchase dozens—or even hundreds—of licenses under a single agreement.

Centralized administration makes deployment and license management significantly easier.

For this reason, many companies choose Volume Licensing to simplify large-scale software deployment.

6. Named User License

A Named User License is assigned to a specific individual rather than a device.

This licensing model is particularly effective for hybrid work environments because employees can access the software from multiple authorized devices.

7. Device License

A Device License is tied to a specific computer or workstation.

It is commonly used for point-of-sale systems, manufacturing workstations, laboratories, and other shared operational devices.

8. Concurrent License

Concurrent Licensing limits the number of users who can access the software at the same time.

For example, a company with 40 employees may purchase only 15 concurrent licenses if only 15 people typically use the software simultaneously.

This licensing model can significantly reduce software costs when applications are shared across shifts or departments.

9. Enterprise License

Enterprise Licenses are designed for large organizations that require advanced security, centralized user management, system integration, and priority technical support.

These licenses generally provide greater flexibility and broader administrative capabilities than standard licensing options.

10. Commercial Open-Source License

Some open-source software vendors offer commercial licensing options that include official technical support, certified updates, and enterprise-grade services.

This model is ideal for organizations seeking the flexibility of open-source software while benefiting from professional support and long-term stability.

How to Choose the Right Software License

• Calculate the number of active users.

• Determine how many devices require software access.

• Select a license that matches your work environment (office-based, hybrid, or remote).

• Compare the total cost of ownership over one to three years.

• Verify that the license permits commercial use.

• Confirm that updates and technical support are included.

• Store all invoices and license keys securely.

• Purchase software through an authorized licensing partner.

• Ensure that activation, license management, and renewals are easy to administer.

Frequently Asked Questions

Which software license is most commonly used by businesses?

Subscription and Volume Licensing are among the most widely adopted models because they are easy to manage and provide continuous updates.

What is the difference between a Volume License and an Enterprise License?

Volume Licensing primarily focuses on the number of licenses purchased, while Enterprise Licensing typically includes advanced security, centralized administration, and enhanced support services.

When should a company choose a Subscription License?

Subscription Licensing is ideal when businesses require continuously updated software, cloud-based services, or collaboration tools.

Is an OEM license suitable for businesses?

Yes, especially if the hardware is unlikely to be replaced. However, organizations that frequently upgrade their computers may benefit more from the flexibility of Retail licenses.

How can businesses choose the most cost-effective license?

Evaluate the total cost of ownership over several years, rather than comparing only the initial purchase price.

Can one software license be shared by multiple employees?

It depends on the licensing model. Concurrent and Multi-User licenses allow multiple users within the limits defined by the software vendor.

Why should businesses purchase through an authorized licensing partner?

Authorized partners help ensure software authenticity, legal compliance, smooth activation, technical support, and easier license renewals and compliance audits.

Conclusion

Choosing the right software license helps businesses reduce costs, improve security, and simplify digital asset management. Before purchasing software, take the time to evaluate your operational requirements and select the licensing model that best supports your organization.

Whether you're a small business or a large enterprise, software licenses should always be purchased through a trusted licensing partner to ensure genuine products, reliable technical support, and complete licensing documentation. By doing so, software licensing becomes more than just a legal requirement—it becomes a long-term investment in your company's efficiency, security, and future growth.