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Many software vendors like to use what is often called a floating or concurrent use model. What a floating license is? It's kind of like exactly what it sounds like. Rather than have individual licenses in the field, often called nodelock licenses, where it's persistently tied to an identity for a given machine.
What a floating license lets you do is let's say you have three individual users, but you have a two-seat floating license. That allows any two of those users to be able to access the application at the same time. The licensing will enforce that the seat count of two never gets exceeded, And if the third customer wants to try to check out a seat, it will be denied, and they'll have to wait until a seat frees up. So what this allows a company and end customer to do is to have a larger pool of potential users of an application and only buy as many seats for their peak capacity as they might need.