INTRODUCTION Cloud computing is useful for business and public in several ways. Due to its advantages and effectiveness, many industries are migrating from their local server to cloud. Different services such as Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) are being used according to the requirement. Some firms use either of the services, while some firm uses more than one service depending on the requirements. Software licensing for cloud computing is having a major problem with services such as IaaS and PaaS. Software Licensing for SaaS is much less when compared to other two services. Software licensing for cloud computing is a well-known problem and it doesn’t have a proper accepted solution. SOFTWARE LICENSING Software License is a legal document that provides the use and distribution of software. Software licenses provide the user with the right to use the software and it is like an agreement between the user and service provider on how to use the software, limitations, warranties, etc. Different types of software licensing which are available are free/open-source licensing and purchased software licensing. Free/open-source licensing allows users to use the software for free without charging for the usage and the rights are similar to the original user rights but users have to accept some agreement terms. Whereas, purchased licensing is obtaining through End-user licensing agreements and this license is strictly prohibited from using licensing media. Here the original licensing is maintained by the owner and the user is more like renting the license by paying the owner for a particular period of time. A software license agreement details exclusive and reserved copyright owner rights. Licensees failing to adhere to this agreement section may be held liable under copyright law.SOFTWARE LICENSING PROBLEMS IN CLOUD COMPUTING Software licensing is more challengeable for Infrastructure-as-a-Service and Platform-as-a-Service than the Software-as-a-Service. Most of the services charges are based on the number of users using the service and moreover, these users may be concurrent or named. Few other services base their licensing is based on per processor basis. There are also some services which consider the casual usage and measure it in the metric which is different from a number of users. A contract between service provider and the user is often referred as Service-Level-Agreement (SLA). The main purpose of SLA is to set up the quality of the service, security and such details to the users. It helps the user to simplify the complicated issues and to provide a clear framework for the users. It is important that users read the agreement and understand the agreement because there are some agreements where service provider doesn’t cover the third-party faults. Software licensing is a real problem for IaaS model as the SLA for PaaS model describes all the valid access of users which eliminates the unauthorized access. Software licensing is not a big problem in SaaS model as the software is the part of the service. It is important to note that the software is has a license and we can only access the software if we are authorized to use it.In any organization, the administrator has all the access to the system. They have to ability to add/remove any user, add/remove security from their system. To access software from a service provider, the administrator can type in the license keys and provide software access for particular users. Authorization can be verified if the applications have the certificate of authority. As the application is used locally, certification must also be available locally. As certification is available locally, there is an open source for the administrator to hijack license system by trading the local certification.Some of the ways to prevent an administrator to hijack the authorization to use software license:• By maintaining a record of all the license usage at the user end, we can have a list of license activations. Update the information in the service provider end and approve the license to be activated only after the record is entered. In this way, we can have a list of license activations and this will stop the opportunity for administrators to hijack the authorization to use license.• The other way is to capture the request and communicate back with the service to complete the registration and authorization at particular provider user. Captured requests should be noted in both user side and the provider side and take appropriate action after verifying user ID and system ID. If more than the approved licenses are used then it should be reported or block the access and if the licenses are within the limit then the provider should approve the request.• There should be some features which will note down the upgrading or downgrading advance features. When such actions are performed on the user side, service providers should run or execute the same in the next execution step and take appropriate actions. • The other way is to limit the number of parallel usage of the software license. Once the access is restored, we should inform the user granted the license of the activity during the license active history.