Token licenses are in fact a form of Network Floating licenses, only that instead of having a pool of licenses – they have a pool of tokens. When a feature is checked-out, a certain amount of tokens are consumed. The number of consumed tokens is specific to each feature, and is apparent in the feature/Increment line in the license file. When the application is closed, the tokens are returned to the pool for other end users to use.
Advantages of Token licenses
Having the ability to apply the acquired licenses to multiple products is an appealing concept:
Customers are not always aware of the full array of features they may acquire. having a token based license scheme ensures customer satisfaction from the license acquisition.
As development stages progress, customer needs change. They may require different licensed features, and eliminate the charge of unused software.
The entire license purchasing method is simplified. Customers can add or try new software applications during the project, without a need for new POs or an evaluation process