Abstract
The impact of Cloud on Software industry is significant. There are many advantages with a software hosted in cloud. Software licensing models should consider the new parameters which are introduced by the cloud. In the cloud world user can use his own software license to deploy the software in VM (Bring Your Own License) or he can purchase a Virtual Machine with the required software, in this case the software license charges are included with the Virtual Machine price (License Charges Included). The service providers use different software licensing models, user has to select licensing model and licensing option (BYOL or LCI) according to his requirement.
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