What Is a Software License? Types, Models, and Examples

Software licenses are legal agreements governing how users can access and deploy software, spanning three main types (proprietary, open-source, and freeware) and five licensing models (subscription, perpetual, usage-based, user-based, and device-based). Understanding license terms is crucial for managing costs, maintaining compliance, and avoiding waste, noting that organizations typically use only 54% of their purchased SaaS licenses.