> For the complete documentation index, see [llms.txt](https://docs.soraco.co/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.soraco.co/docs/floating-licenses/cloud-floating-licenses.md).

# Cloud Floating Licenses

A floating license is a software license that can be shared by multiple users, but not simultaneously. For example, if a customer purchases 5 copies of an application, the application could be installed on 100 computers but only 5 computers/users could run the application simultaneously 12.

A cloud floating license is a type of floating license that is managed by a cloud-based licensing server. The cloud-based licensing server manages the allocation of licenses to users who are connected to the internet. When an authorized user wishes to run the application, they request a license from the cloud-based licensing server. If a license is available, the cloud-based licensing server approves access. When the application exits, the application relinquishes the license so that other users can consume it.