Showing results for 
Search instead for 
Did you mean: 
Create Post

Licensing Monitoring Tools: What Types of Models There Are and When Each Could Be a Good Fit

Level 10

This is a continuation of one of my previous blog posts, Which Infrastructure Monitoring Tools Are Right for You? On-Premises vs. SaaS, where I talked about the considerations and benefits of running your monitoring platform in either location. I touched on the two typical licensing models geared either towards a CapEx or an OpEx purchase. CapEx is something you buy and own, or a perpetual license. OpEx is usually a monthly spend that can vary month-to-month, like a rental license. Think of it like buying Microsoft Office off-the-shelf (who does that anymore?) where you own the product, or you buy Office 365 and pay month-by-month for the services that you consume.

Let’s Break This Down

As mentioned, there are the two purchasing options. But within those, there are different ways monitoring products are licensed, which could ultimately sway your decision on which product to choose. If your purchasing decisions are ruled by the powers that be, then cost is likely one of the top considerations when choosing a monitoring product.

So what license models are there?

Per Device Licensing

This is one of the most common operating models for a monitoring solution. What you need to look at closely, though, is the definition of a device. I have seen tools classify a network port on a switch as an individual device, and I have seen other tools classify the entire switch as a device. You can win big with this model if something like a VMware vCenter server or an IPMI management tool is classed as one device. You can effectively monitor all the devices managed by the management tool for the cost of a single device license.

Amount of Data Ingested

This model seems to apply more to SaaS-based security information and event management (SIEM) solutions, but may apply to other products. Essentially, you’re billed per GB of data ingested into the solution. The headline cost for 1GB of data may look great, but once you start pumping hundreds of GBs of data into the solution daily, the costs add up very quickly. If you can, evaluate log churn in terms of data generated before looking at a solution licensed like this.

Pay Your Money, Monitor Whatever You Like

Predominantly used for on-premises monitoring solutions deployments, you pay a flat fee and you can monitor as much or as little as you like. The initial buy-in price may be high, but if you compare it to the other licensing models, it may work out cheaper in the long run. I typically find established players in the monitoring solution game have on-premises and SaaS versions of their products. There will be a point where paying the upfront cost for the on-premises perpetual license is cheaper than paying for the monthly rental SaaS equivalent. It’s all about doing your homework on that one.


I may be preaching to the choir here, but I hope there are some useful snippets of info you can take away and apply to your next monitoring solution evaluation. As with any project, planning is key. The more info you have available to help with that planning, the more successful you will be.


Thanks for the article!

Level 14

Thanks for the article!

Level 16

Thanks for the write up. I have also seen pay per transaction when doing some types of synthetic monitoring.

Level 13

Thanks.  Definitely a case of do your homework and make sure the license model (and for that matter deployment model) work for you.

Level 11

Thanks for the article.

Level 13

Thanks for the Article

Speaking from the viewpoint of a non-profit supporting millions of customer interactions (in person and online) each year, I can only ask for the impossible:  100% enterprise licensing without restrictions, at an impossibly low price point, across all platforms.

It'd be great if you got right on that . . . you know, with your magic wand, pixie dust, and an all-powerful Genie.

Level 14

I'm right in the middle of this as we are about to replace out monitoring solution.  I want to CapEx the solution as Solarwinds on prem and then OpEx the annual maintenance.  In my last place it was all SaaS from a supplier and therefore all OpEx.  That was quite expensive and we had no control.