Plain-English meaning
A pricing model in which subscription cost is tied to the number or type of licensed users.
Why it matters in a software decision
Definitions for active users, minimum quantities, guests, viewers, agents, and administrators can change the true seat count.
Where you may see it
Pricing pages, quotes, order forms, administrator billing screens, and true-up terms.
What to verify
- Which roles require paid seats
- Minimum purchase and tier bands
- Billing for inactive users
- Reassignment and true-up rules
Do not confuse it with
Seat-based price tracks licensed users; usage-based price tracks consumption such as messages, storage, or compute. A plan can use both.
Procurement example
Build the estimate from real role counts and growth assumptions instead of multiplying the employee total by a headline price.
This glossary explains procurement usage in plain English. Contract, privacy, security, accounting, and regulatory conclusions require context-specific review.