Can a named user license be transferred to another person?

Yes, generally. Upon departure or role change, the license is revoked from the previous person and assigned to a new one. Some vendors limit how often or at what intervals this is permitted, so the license terms of the respective provider apply.

Are you allowed to share a named user license with colleagues?

No, generally not. The license applies to one named person; sharing an account usually violates the license terms and makes it difficult to trace who did what. For shared use, concurrent user models exist if the provider offers them.

Is a named user license the same as a user license?

Yes, in everyday usage the terms are mostly used synonymously. Both refer to a license assigned to a specific person. Vendors use different names, such as Authorized User at IBM or User Subscription License at Microsoft.

Named User License: Definition and Comparison

Key Takeaways

Every authorized person is counted, not simultaneous usage.
IBM defines an Authorized User as a unique person given access to the program.
Microsoft bills Microsoft 365 and Dynamics 365 with per-user licenses.
Sharing a single account among multiple people is usually prohibited.

How does a named user license work?

With a named user license, each license is assigned to the account of a specific person. Only that person may use the software, often across several of their own devices. If they leave the company, the license can generally be revoked and assigned to another person. Microsoft describes this exact principle for Microsoft 365.

When is a named user license worthwhile?

A named user license is worthwhile when most authorized people use the software regularly.

Email, office suites, and collaboration tools that everyone needs daily
CRM for the sales team
Tools with personal data and settings per person

What should small and medium-sized businesses watch out for with named user licenses?

With named user licenses, costs arise for every assigned person, even if they barely use the tool. Small and medium-sized businesses should therefore revoke assignments promptly upon departure, regularly review inactive accounts, and reassign free licenses instead of buying new ones.

Example: Named User License in practice

Real-world example

Example: The sales team of a company with 70 employees uses a CRM with named user licenses at 40 euros per month each. Each of the 25 people on the team needs their own license, totaling 1,000 euros per month, even though 6 of them only log in once a week.

Named User License vs. Concurrent User License

Aspect	Named User License	Concurrent User License
Counting unit	Authorized person	Simultaneous access
Assignment	Fixed to one person	No fixed assignment; seats are shared
Costs scale with	Each additional person	Higher simultaneous usage
Suitable for	Regular use by almost all authorized users	Occasional, time-shifted usage

A named user license counts every authorized person, whereas a concurrent user license only counts the number of simultaneous accesses.

How does Sovaro help with Named User License?

How Sovaro helps

Sovaro flags named user licenses without usage for 30 days. This lets you see which specific person holds a license without using it.

Frequently Asked Questions about Named User License

Sources

IBM Passport Advantage: License Types and Definitions Microsoft Learn: Subscriptions, licenses, accounts, and tenants for Microsoft's cloud offerings

Named User License