Software as a Service (SaaS) breaks the shackles of traditional software licensing approaches, but savvy users still optimize their SaaS environments to avoid undue costs.
SaaS subscription models typically require a one to three year commitment. Customers are invoiced, usually on a monthly basis, and the license typically uses some sort of billing metric based on resource usage, such as the number of end users that can access the product. The flexibility of SaaS licensing models enables organizations to expand the use of the product according to their needs during the term of the subscription.
For instance, decreasing the number of subscribed licenses is usually permitted during the course of the subscription, or at least on its renewal date. The ability to reduce or increase the number of licenses, as needed, is beneficial to organizations if they can closely monitor use so that all licenses purchased are actually being used.