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One of the licensed model techniques that we recommend to software vendors to drive increased usage of their application is to leverage what we call overdraft licenses. So the use case here is you may have a customer that wants to purchase a hundred seats of your application. Could be a SaaS application, could be on prem, and so forth. But, you know, typically the worst thing in the world from an end customer standpoint is when they want to make increased use of your application that it is denied, right, that you do what we would call a hard enforcement of those hundred seats.
And you as a vendor, of course, want to encourage your customers to make as much use of your software as possible, you just want to get fairly paid for it. So what overdraft licenses allow you to do is to have kind of a soft limit. So here we've sold them a hundred seats. And so we can give feedback to the customer say, Hey, you're within your hundred seats, or no, you're actually starting to use these overage or overdraft licenses, but we'll put a hard cap of a hundred and twenty seats so that they don't just have unbridled access to your application.
So when you look at that in terms of seat usage over time, we can even graph this out for you dynamically. And in fact, this is also part of our end user portal So if you wanna provide that capability to your end customers as well, to be able to look at their usage over time, help them do capacity planning, and so forth, we can accommodate that. So here you might have sort of varying demand against the initial hundred seats. So here at this point where they've started going into those overdraft seats within the application, itself, you'll get status back from our APIs to say, Hey, we're using overdraft licenses right now, so you can give that indication back to the end customer if you choose. That will also generate events, both through the APIs, as well as through webhooks.
So you can put the appropriate handling against that perhaps send an email to the account team, send an email to the end customer admin, whatever you wish to do. And then as that usage continues to grow into those overdraft licenses, we'll still do that hard enforcement at that upper limit, right, that hard enforcement line of one hundred and twenty seats. So if they do try to activate one hundred and twenty first seat, etcetera.
That will be denied. Again, that generates an event so you can perform automation against that and so forth. And again, the and customer through the end user portal can see that, you know, they've been denied a certain number of times and if that happens a lot. Obviously, they'll want to bump up their capacity. So with overdraft licenses, it really encourages the best working relationship between the end customer and yourself by selling them what they paid for, giving them the ability to do a little bit more, but still enforcing a hard limit directly under your control.