Consumption-based Licensing | Definition


Consumption-based licensing is a type of software licensing, where the software vendor enforces a licensing model that enables them to charge users based on their usage of the application that the vendor sells.

This “usage” (or consumption) can be, for example, use-time, the number of times an item is accessed, or the number of times a particular action is completed or a feature used, like exporting a file.

Implementing consumption-based licensing allows a software business to deploy a pay-per-use business model for its end customers.


Your One-Stop Shop for

Software Monetization

10Duke provides fast-growing software businesses with


Cloud-based Software Licensing

id_sm2 Customer Identity Management

int_sm4 Out-of-the-box Integrations with Ecommerce & CRM

event_sm2 License Usage Insights

Schedule a Demo