Concurrent Licensing vs. Per-User: Which Model Saves You More?

If you've ever priced document management software, you've seen the model: $X per user, per month. It sounds straightforward until you realize you're paying for every single person in your organization — even the ones who only log in once a week to look up a single file. There's a better way.

The Problem with Per-User Pricing

Per-user (or "named user") licensing charges for every individual account. A company with 50 employees needs 50 licenses, whether those people use the system daily or once a quarter. For organizations with shift workers, part-time staff, seasonal employees, or teams that rotate through the system, per-user pricing creates significant waste.

Consider a county government office with 80 employees across multiple departments. Maybe 15 of them are in the system at any given time. Under per-user pricing at $49/user/month, that's $3,920/month — for a system that never has more than 15 active sessions.

How Concurrent Licensing Works

Concurrent licensing flips the model. Instead of paying for every person who could use the system, you pay for the number of people who use it at the same time. Everyone in your organization gets an account — unlimited user accounts — but only the concurrent limit matters.

That same county office? They'd buy 15 concurrent licenses instead of 80 named licenses. At $49/license/month, that's $735/month instead of $3,920. Same access for all 80 employees. Over $38,000 saved per year.

How to Calculate the Right Number of Licenses

The key metric is your peak concurrent usage — the maximum number of people who need to be logged in simultaneously. Here's a simple way to figure it out:

• Count the number of people who use the system during your busiest hour
• Add a 20% buffer for growth and peak days
• That's your license count

Most organizations find that their peak concurrent usage is 15–30% of their total headcount. The larger the organization, the lower the ratio tends to be.

When Does Per-User Make More Sense?

In fairness, per-user licensing can be simpler for very small teams (under 5 people) where everyone is in the system all day. If your concurrent usage equals your headcount, the pricing models converge. But for any organization with shifts, part-time staff, field workers, or departments that don't need constant access, concurrent licensing is almost always cheaper.

The Bottom Line

Concurrent licensing aligns your costs with actual usage. You're not paying for seats that sit empty — you're paying for the value you're getting. At REV3, concurrent licensing is built into every plan, starting at $49/license/month. No audits, no true-ups, no surprise bills when you onboard a new hire.