In cloud computing, software licensing refers to the legal instrument that governs the use and distribution of software. Cloud providers often have different licensing models for their software, which can impact the cost and flexibility of using their services.

• Software licensing can affect the cost of using cloud services, as some licenses charge based on the number of users, while others charge based on the amount of computing resources used.
• Understanding software licensing can help businesses avoid unexpected costs and ensure they are using software legally.

Software licensing works by setting out the terms and conditions for using a piece of software.

• In a cloud context, this could include terms related to the number of users, the amount of computing resources used, or the geographic location of the users.
• Software licenses can be perpetual (lasting indefinitely), term (lasting for a specific period), or subscription-based (requiring regular payments).

A business, BizCorp, wants to use a cloud-based project management tool. The tool's software license charges based on the number of users. By understanding the terms of the license, BizCorp can accurately budget for the cost of using the tool.