There was a time when software licensing meant signing a multi-year contract, tucking it away in a drawer, and only pulling it out again when renewal was due. Today, however, the landscape is anything but static. Vendors across the board—whether Microsoft, Oracle or major CAD/CAM providers—are rolling out flexible, subscription-based models, constantly updated “evergreen” agreements, and a variety of specialized clauses for emerging technologies that demand constant attention.

Equally significant is a new perspective on compliance: it’s shifting from a purely enforcement-driven function to a role that supports customer success. Below, we’ll explore how agreements from companies such as Microsoft, Oracle, IBM, and SAP are evolving, and how both vendors and end users can benefit from an advisory-focused compliance strategy.

Below, we’ll also look at how licensing in sectors from enterprise productivity to engineering design (CAD/CAM) is changing, and why an advisory-based compliance mindset benefits vendors and customers alike and how these manifest within more recent software agreements.

The Changing Landscape of Software Licensing

From One-Time Contracts to Ongoing Relationships

Historically, enterprise licensing often meant a single, large contract that might be reviewed at renewal every few years. Now, many vendors push continuous models that adapt to evolving needs. Microsoft’s non-expiring (continuously renewing) Microsoft Customer Agreement (MCA) is one example. In the CAD/CAM engineering arena, companies like Autodesk and PTC (for tools like AutoCAD or Creo) have adopted subscription-only models, phasing out perpetual licenses (perpetual licenses may still be available through select enterprise agreements or legacy plans). This shift allows users to scale up or down more readily but also necessitates more vigilant tracking of entitlements.

Compliance Implication: With subscription-based or “evergreen” models, organizations can no longer rely on an annual “true-up” reminder to stay compliant. Instead, ongoing visibility into usage is essential, whether you’re dealing with office productivity suites or a multi-seat engineering design platform.

New Agreement Structures Across the Industry

1. Enterprise Software (Oracle, IBM, SAP): Credits and consumption-based offerings with specialized clauses for indirect usage (e.g., third-party apps connecting to SAP), and sub-capacity licensing in virtual environments.
2. CAD/CAM and Engineering Software:

• Dassault Systèmes (SOLIDWORKS): Offers network or “floating” licenses, sometimes complemented by subscription-based support and add-ons.
• Autodesk: Fully transitioned to subscription models for its main products like AutoCAD and Inventor.
• PTC: Shifting to subscription for products like Creo, with specialized terms for on-prem and SaaS usage.
• Ansys and other CAE players like Altair: Often rely on “token-based” licensing, where tokens can be pooled and assigned dynamically across simulation tasks.

The result is an increasingly diverse set of licensing structures. Teams must keep track of specific entitlements, especially for specialized engineering modules, simulation tokens, or concurrent use features, to avoid compliance risks.

Staying Informed

IT and asset management teams need to stay in “continuous evolution,” constantly monitoring vendor announcements. That could mean joining product update webinars for Autodesk, reading about new Oracle cloud credit policies, or watching for changes in Ansys’ token-based model. What was acceptable a year ago might be revised today, and even small contract changes can have major implications, especially for engineering teams with multiple active projects. .

2. Key Steps for Compliance Professionals

Map Out Major Agreements

One of the most practical actions is to build a central repository covering each key vendor relationship. Include:

• Type of Agreement: Subscription, token-based, hybrid, or perpetual (if still supported).
• Scope and Restrictions: Virtualization limits, indirect usage clauses, module add-ons, or usage of simulation tokens.
• Renewal vs. Evergreen: Whether the contract has a set term or renews automatically.
• Internal Ownership: Which team (e.g., engineering, product design, IT) manages the licenses?

Having this framework ensures that crucial information is always at hand, cutting down on confusion, particularly important if your mechanical engineering department spins up a new simulation environment overnight.

Identify Risk Areas

Flexible subscription or token-based licensing can easily result in overshoot if it’s not tightly monitored. A few examples:

• Multiple CAD Modules: Activating advanced modules in tools like NX or Creo can require separate entitlements. If engineers enable a feature on several seats without proper licensing, you risk non-compliance.
• Cloud/Hybrid Deployments: Shifting part of your data to a public cloud might trigger new usage rules in your vendor contracts or require a new license category.
• Data Exchange and Integrations: Indirect access in ERP systems or integrations between CAE tools and PLM (Product Lifecycle Management) platforms can require additional fees or specific licensing terms.

Set internal guardrails: require a quick procurement or legal review whenever new modules or simulation tokens are requested. This helps curb unintentional “license creep.”

Engage Vendors Proactively

Rather than waiting for an audit notice, consider scheduling regular check-ins with your primary vendors:

• Stay Updated: Autodesk, Dassault Systèmes, Siemens, and others often announce licensing or pricing changes in user community forums or official events. A short conversation might reveal relevant details before they impact your budget.
• Negotiate or Adapt Early: If your design team plans to expand significantly, discussing it upfront with your vendor may yield more favorable terms, or at least clarify how your current licenses scale.
• Advisory Services: Some vendors offer usage optimization sessions, reviewing how your engineers deploy modules and suggesting more efficient approaches.

3. From Enforcement to Customer Success

Advisory Instead of Audits

A growing trend among vendors, ranging from enterprise software giants to engineering tool providers, is to treat compliance as a collaborative endeavor. Rather than focusing on audit penalties, many now offer proactive “health checks.” They may help you align your licenses with real-world use, potentially even recommending specialized bundles if they see a mismatch between your subscriptions and day-to-day workflows.

Education and Transparency

A powerful way to build trust is to equip customers with clear guidelines. For instance, Dassault Systèmes could outline how to handle floating SOLIDWORKS licenses for multiple time zones. When customers have that information at their fingertips, they can better self-manage, reducing the risk of accidental overuse.

Case in Point: SAP’s Digital Access Model

SAP’s digital access model is a strong example of how indirect usage can upend assumptions. If your PLM or engineering tool feeds data into SAP for parts or BOM (Bill of Materials) updates, you might need additional licenses. Publishers who discuss these rules openly can guide customers to the right solution before any unexpected bills arise.

Outcome: A Win-Win Scenario

When compliance is a shared priority:

• Customers: Lower risk of penalties and better visibility into how licenses are used, often leading to cost savings and more predictable budgeting.
• Vendors: Protect their IP and revenue streams, but also enhance long-term customer loyalty. Clients who feel supported are far more likely to remain engaged, and possibly expand their investment in additional features or tools.

4. Conclusion & Call to Action

Software licensing, from enterprise software to sophisticated CAD/CAM platforms, has undergone a major transformation. Subscriptions, tokens, and hybrid usage models have added flexibility but also require ongoing diligence from compliance professionals. Yet this new environment can be beneficial, opening opportunities for strong collaboration between vendors and end users.

To make the most of this shift:

• Vendors: Offer transparent licensing tiers, educate your customers on effective usage, and provide advisory services that emphasize mutual success.
• Customers: Catalog agreements meticulously, track how your teams actually use various features or modules, and communicate proactively with vendors about upcoming changes in your environment.

Need Guidance? Whether you’re a software publisher refining your compliance approach or an organization juggling complex CAD/CAM and enterprise agreements, Connor Consulting can help. We blend in-depth knowledge of emerging licensing models with a philosophy centered on transparent, mutually beneficial relationships. Connect with us today to discover how an advisory-focused compliance strategy can safeguard your interests, optimize costs, and strengthen partnerships across the software ecosystem. Let’s build success, together.

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