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Exactly why Product Activation For Software is Getting Common

  • Product activation is popular by software vendors to shield their applications and enforce license agreements. Even though some users object to any type of license management, modern product activation systems can beat other techniques from the vendor's as well as the end-user's perspectives.


    Software vendors use license management for various reasons. They are generally concerned with protection from piracy, and protection against users exceeding their agreed license terms (like the amount of installations that run in the customer company). License management also allows the software vendor to produce, distribute, and support one version of their application, but offer different license terms at different prices to various markets.

    For example, the seller may use the licensing mechanism to offer trial licenses, perpetual licenses, subscription licenses, set limits around the product features or modules enabled, set usage limits, combination's of all of the above, and offer straightforward upgrades in capabilities, by using one executable (some license management systems even let the vendor to also offer floating licensing either on the end-customer's network or perhaps the Internet based with this same executable). Finally, license management can encourage the vendor to automate fulfillment, management and reporting, so reducing operations costs and offering immediate delivery worldwide 24x7 to their customers.

    A vital concern for software vendors is ensuring users don't just give the software to unlicensed colleagues and friends, or perhaps post it on the web for anyone to download. The common option is called node-locking, where each user's installation is locked to at least one or maybe more parameters of their system, such as the MAC address. Every time the application runs, it reads, say, the MAC address with the computer where it can be running, and can proceed only if the address it reads matches normally the one recorded for your license.

    Older methods for license enforcement include dongle-based licensing and key-file-based licensing. A dongle is a hardware device that connects to anyone's computer; if the application runs it checks for that presence of the dongle and may run provided that it finds it. Dongles do therefore let the user to maneuver their license around, but only by physically relocating the dongle. With key-file-based licensing, the license limits and node-locking parameters are encrypted within a file, which is provided for an individual and browse by the application each time it runs.

    These approaches have a number of disadvantages. Dongles need the distribution from the hardware, with all of that entails in material cost, shipping cost, delivery times and management with the vendor. They may be widely disliked by end-users, that don't need to wait for the crooks to arrive, keep an eye on them, keep these things stick out of these computer and so on.

    Key-based licensing improves on dongles since the encrypted key files might be delivered immediately by email, and impose no hardware burden. However, they do require the user to deliver what they are called of the locking parameters (or operate a utility to see them), and don't allow users to readily move their license from machine to machine, as such moving will need a whole new key file. Upgrading with a user's license, like extending a subscription, also necessitates the generation and delivery of the new key file.
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