What's the difference between a named vs. concurrent user licenses? Here’s what you need to know.
If you are in the market for SaaS ERP or considering a cloud migration from your on-premises solutions like Microsoft GP or NAV, here’s what you need to know about the differences in licensing and what concurrent vs. named users refer to.
What is a Concurrent User License?
A concurrent user license is like a group license. It allows a team of employees to share a license between them. Each user is entitled to access and use the software, but only up to the specified maximum number of permitted users.
This means that if you have a 5 concurrent user license plan, up to 5 registered people can simultaneously access the software, regardless of who they are. However, if an additional user wants to log on, they won’t be able to access the system until one of the 5 using the software log off and a license becomes available.
With this type of licensing, it is common that more users are registered than actual concurrent licenses available. This model is often found in companies where employees work in different shifts or time zones and access the software at different times.
What is a Named User License?
A named user license is a single license and is individualized. The license, in this case, is made for a specific group of people, and only they can access and use the software. This means if you have a 5 named user license plan, only the 5 registered people selected to use the software will be able to access the software.
This type of licensing is ideal when you have a situation where a specific group of people needs constant and unlimited access to the software. This type of licensing is more common in cloud-based ERP solutions.
Many software providers using this model also offer add-on additional users who need access to the software from time to time. They may need to consume data or reports, complete light tasks like time or expense entry and HR record updates, or use the system more heavily without requiring full user capabilities. For example, Microsoft’s cloud-based Dynamics 365 Business Central follows a named user licensing model and allows you to get additional licenses for these types of users.
About Kwixand Solutions
As a Microsoft Solutions Partner based in Vancouver, Canada, we think about digital transformation a bit differently. For us, successful digital transformation is much more than just implementing an ERP or CRM solution. It's about helping businesses achieve their goals and maximizing their ROI, and ensuring they are set up for continued success. Get in touch today to learn how we can help your organization digitally transform.
