A few years ago, during an intensive User Acceptance Testing (UAT) phase, a familiar scenario unfolded: “Why are Robert and his team using advanced features in the model viewer? I’m not sure we have enough licenses for this new version. How did we miss this?”
For many engineering organizations, this story sounds all too familiar. When planning a major upgrade for EDA, CAD, FEA, PLM, or ALM software, attention naturally focuses on data models, migration, and functionality. Unfortunately, license management often becomes an afterthought—until it becomes a bottleneck.
This situation highlights two common issues that most engineering teams face.
1. Limited Visibility into Feature Usage
Many organizations simply don’t know how their teams are using their engineering software.
In mid-to-large companies, network or floating licenses are the most cost-effective way to manage access. However, without FlexLM Option Files or other controls in place, licenses are available on a “first come, first served” basis.
Engineers, by nature, are curious and driven to improve processes. They explore new tool features to gain efficiency. But without visibility into feature usage, managers are left guessing who uses what—and how often.
Without accurate reporting, planning for upgrades or expansions becomes guesswork.
2. License Model Changes During Upgrades
Software vendors frequently introduce new features, modules, and bundles with each version release. These upgrades often come with changes to the licensing model, which can complicate renewals or transitions.
While vendors usually avoid charging extra for functionality that was already available, changes in license bundling or add-ons can still cause confusion. “Grandfathering” agreements can further complicate transitions, particularly in large multi-site engineering environments.
Understanding which tools, modules, and features your users rely on before upgrading can help avoid unexpected licensing shortfalls—and budget surprises.
The Rise of Token-Based Licensing
To simplify complex bundle and add-on models, many vendors are now moving toward token-based licensing. This approach provides flexibility for organizations with highly variable usage patterns, allowing them to allocate tokens dynamically across different software products or modules.
FlexLM already supports token-based management, and more vendors are expected to adopt it as they transition to subscription-style licensing.
While token licensing provides scalability and flexibility, determining the right number of tokens to purchase can be challenging without reliable usage data.
Having a clear understanding of who uses what, and when, is crucial before making token-based purchasing decisions.
Have you implemented token-based engineering software? What challenges have you faced in forecasting token demand?
How to Truly Know Your Users
To make informed decisions about software upgrades, purchases, and transitions, engineering leaders need more than assumptions—they need data-driven insight.
That’s where TeamEDA’s LAMUM (License Asset Manager with Usage Monitoring) comes in.
LAMUM provides:
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Complete license visibility across all vendors, servers, and daemons.
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User-level usage data, including heatmaps and historical reports.
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Active Directory integration for easy tracking and role-based access.
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Alerts and zero-use reports for identifying underutilized tools.
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Denial tracking to highlight capacity issues.
LAMUM empowers organizations to right-size their license portfolios, forecast upgrade needs, and ensure that every investment in engineering software delivers measurable value.
Supported Tools and Vendors
TeamEDA supports an extensive range of engineering tools, including but not limited to:
Siemens NX, Solid Edge, Teamcenter, PTC Creo, Windchill, Dassault Systèmes CATIA, SolidWorks, ENOVIA, Autodesk, ANSYS, ArcGIS, Mentor, No Magic, Altair, LabVIEW, Cadence, and MathWorks.
For the complete list of supported vendors and applications, visit TeamEDA’s website.
Plan Your Next Upgrade with Confidence
Before starting your next EDA, CAD, FEA, PLM, or ALM upgrade, make sure you have a clear understanding of user behavior and license utilization.
With LAMUM, engineering and IT leaders can plan upgrades with precision, ensuring resources are allocated efficiently and cost savings are realized across the organization.
TeamEDA has one focus, helping you make smarter, data-driven decisions about your engineering software assets. Contact us today to discuss your license planning strategy.
About the Author
This post was adapted from a LinkedIn article by Paul Empringham, TeamEDA’s European Sales Director, who brings over 20 years of experience in engineering software and CAD/PLM management.
Paul has consulted for Siemens PLM and led engineering application teams across Europe. Outside of work, he is a Level 2 ECB Cricket Coach and an avid skier.
