# On-premise 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.

An on-premise floating license is a type of floating license that is managed by a licensing server installed on the customer’s premises. The licensing server manages the allocation of licenses to users who are connected to the local network. When an authorized user wishes to run the application, they request a license from the on-premise licensing server. If a license is available, the on-premise licensing server approves access. When the application exits, the application relinquishes the license so that other users can consume it.


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