Hardware vs software license keys in a VM environment

licensingvirtual-machines

I am working with a vendor who is supplying a server-based application which requires licensing for activation. There are two options, software-based licensing and hardware (USB-dongle) based activation. What are the pros and cons to using hardware or software license keys in an environment where the application software is running on a VMware based server? The USB hardware license key will be plugged into one of these:
https://www.digi.com/products/usb/anywhereusb

There are two applications which are being licensed:
Vendor: Iconics Software:GENESIS32 SCADA platform
Vendor: Rockwell Automation Software: FactoryTalk (RSLinx)

This is the reasoning the vendor gave for their preference for hardware keys:

We have found that hardware keys are more stable than software keys,
especially in a VM environment. Software keys are usually attached to
the hard drive or NIC id of a computer. Any time this number changes
(hard drive failure, VM reconfiguration, etc) the license is lost and
needs to be reloaded with the help of the manufacturer. Today’s
licensing is done over the internet, and most servers do not have
internet access, so dealing with licensing issues has become a major
headache. Hardware keys work well for the VMs because they don’t
reside on the VM. If you have an image failure or other server
failure, you can copy in a new image, point to the license key, and
you are up and running.

Best Answer

The hardware keys add an extra point of failure. I've seen them break. When they do break, you can't log into your card swipe system and give new people access to the building. sigh

Always go software key if you have the choice. FlexLM (one of the more common license servers) for example is a real pain in the ass, but once it's up and running, you don't have to worry about it. With a hardware key, you have to worry about the key failing, the USBAnywhere failing, the USBAnywhere software failing, etc.

I've used those USBAnywhere devices and they've been pretty solid, but I'd still prefer software keys 10 out of 10 times.