Software Licensing models: cloud or on premise

Licensing for PackDesign software can come in two forms: cloud-based and on-premise. Both have their advantages and disadvantages, and the choice between the two will largely depend on your specific needs and preferences. Below we’ll explore the differences between cloud-based and on-premise licensing, to help you make an informed decision.

Cloud-based Licensing

Cloud-based licensing refers to a software model where the software is hosted on a remote server and accessed through the internet. This means that users don’t have to install any software on their own computer, and can access it from anywhere with an internet connection. Cloud-based licensing requires a yearly subscription fee, and the software provider takes care of all the technical aspects, such as software upgrades, maintenance and backup.


  1. Accessibility: As the software is hosted on a remote server, users can access it from anywhere with an internet connection.
  2. Cost-effective: yearly subscription fees can be more cost-effective compared to upfront costs associated with on-premise licensing.
  3. Scalability: Cloud-based licensing is highly scalable, allowing you to add or remove users as your business grows.
  4. Automatic upgrades: The software provider takes care of software upgrades and maintenance, meaning users always have access to the latest version.

On-Premise Licensing

On-Premise Licensing refers to a software model where the software is installed directly on the user’s computer or on-site server. This means that users have complete control over the software and the data it generates, but also means that they are responsible for managing the software and dealing with any technical issues that may arise. On-premise licensing requires a one-time fee for the software, as well as ongoing costs for maintenance and upgrades.


  1. Control: On-premise licensing gives users complete control over the software and the data it generates.
  2. Data security: With on-premise licensing, user data is stored on-site and is therefore less vulnerable to hacking or data breaches.
  3. Customization: On-premise software can be customized to meet the specific needs of the user, which is not possible with cloud-based licensing.
  4. Offline access: With on-premise licensing, users can access the software even when an internet connection is not available.

A floating license is a type of on-premise license that is designed for organizations that need to share the software among multiple users. The license is not tied to a specific machine, but instead, is managed on a server and can be accessed by multiple users simultaneously.

A floating license allows you to define a specific number of licenses to an application that are shared among a specific group of people. For example, you may provide 10 floating licenses to a company, but that company may have 30 people who may request a license from the floating pool of 10 licenses. Once all 10 licenses are checked out, no other access is permitted until a license is returned to the pool.

A floating license works on a ‘first come first served basis’ and is a great way to share licenses between a group of people.


In conclusion, the choice between cloud-based and on-premise licensing largely depends on your specific needs and preferences. Cloud-based licensing offers accessibility and cost-effectiveness, while on-premise licensing offers control and data security. Consider your business requirements, budget, and IT infrastructure before making a decision. If you need any help or have any questions, feel free to contact our team at packdesign@admin