Monthly agreements, such as those available to our MSP Partner program, are billed in arrears based on actual metered use.
Annual or longer agreements, which typically rely on usage estimates, have a fair use agreement to allow for minor variances of license consumption during the contract term.
Unless otherwise stipulated, annual agreements contain a 10% overage allowance within any given Metered Period.
The default Metered Period is a calendar month.
Example: If a Customer were to purchase 500 annual licenses for one of our products, and in March the user count went up to 545 active users, the Customer would not be liable to pay any additional overage or be compelled to reduce the distribution of our product.
Customers that exceed the fair use agreement will be given a written notification of the breach, and given a choice to A) Purchase additional licenses or B) Restrict the deployment to bring the active user count back into fair use limits. On receiving this notification, unless otherwise stipulated, a Customer has 30 days to comply.
Should a customer refuse to comply, or fail to comply, we reserve the right to consider the Contract in breach and take appropriate actions.
The spirit of the fair use agreement is an attempt to reasonably allow for genuine unpredictable changes in user count in the Customer organization without incurring unplanned costs. It is not a permanent “10% free” offer to encourage Customers to intentionally under-purchase licenses. Therefore, on annual renewal of contract, the previous 12-month average active user count will be used as a benchmark to define the number of licenses for next 12-month subscription renewal.