Floating Licenses

Floating Licenses provide flexibility during the initial deployment phase, allowing customers to begin using licensed services before full license activation. They are billed based on actual used capacity during that period, not on contracted license quantities. Floating licenses are available by default, but charges apply only when eligible services are activated and measured. If the customer does not activate sites, users, or other applicable services before the contract start date, no floating charges apply.

Ramp-Up Period and Contract Term

The Ramp-Up Period begins on the contract signing date when a new customer purchases licenses with a future service start date, which becomes the contract start date. It lasts for up to 12 months and precedes the committed contract term, which retains its full quoted duration. The Ramp-Up Period ends on the scheduled contract start date and does not end early if deployment is completed sooner.

Grace Period and Customer Notification

When the account moves from Trial to Commercial, the customer is notified in CMA that the Ramp-Up Period has started and that billing will apply based on measured services. A 14-day grace period begins at that time, during which the customer may deactivate services and usage is not included in Floating measurement.

Following the grace period, usage measurement begins on the next full calendar month. Usage may still be visible in the CMA during the grace period and any partial month that follows; however, that usage is not included in the floating measurement.

Usage Measurement and Billing Baseline

During the Ramp-Up Period, usage is measured monthly according to the standard measurement rules for each license type (for example, users, bandwidth, or devices).

The highest measured usage reached to date becomes the billed baseline for the period. If usage decreases in a later month, billing remains based on the highest previously measured value until full activation.

For example, if an account has 40 active licenses at the beginning of August and usage increases to 50 during the month, billing for August is based on 50 licenses.

Similarly, if usage is 1000 users in July and decreases to 750 users in August, billing remains based on 1000 users during the Ramp-Up Period until full activation.

Billing and Invoice Timing During the Ramp-Up Period

• Monthly measurement: Usage is measured each month and compared with the previous highest measured capacity. If usage does not exceed that level, the billing baseline does not change.

• When usage reaches a new high: Only the increase above the previous billing baseline is charged in arrears, and the higher measured capacity becomes the new baseline.

• At the next billing date: The accumulated incremental charges are included in the customer’s scheduled invoice. The customer is also billed in advance based on the highest measured capacity for the following billing period.

Floating charges apply only to the Ramp-Up Period. They do not increase the customer's committed license quantities and do not carry over into the committed contract term

Over-Usage During the Ramp-Up Period

Over-usage may occur during the Ramp-Up Period and is evaluated under the same Fair Use rules and commercial terms that apply during the regular contract period. The customer may resolve over-usage through a one-time true-up or a true-forward upsell; the standard 150% terms and 60-day resolution period apply.

Adding Licenses During the Ramp-Up Period

Customers may purchase additional licenses or services during the Ramp-Up Period. Additional licenses follow the same Ramp-Up timeline and co-terminate with the account end date.

Purchasing additional licenses does not create a new Ramp-Up Period.

End of the Ramp-Up Period

At the end of the Ramp-Up Period, all licenses transition to full activation.

The month in which the account transitions from the Ramp-Up Period to full activation is measured as a normal commercial month. Usage during that month is included in measurement and over-usage evaluation from the beginning of the calendar month.

Following activation, billing is based on the contracted license quantities, regardless of prior Ramp-Up usage, and standard measurement and over-usage rules apply.

Measurement During Ramp-Up Period by License Type