Software metering refers to several areas:
- Tracking and maintaining software licenses . One needs to make sure that the license is in use, and at the same time, that there are enough licenses for everyone using it. This can include monitoring of concurrent use of software for real-time enforcement of license limits. Such license monitoring usually includes when a license is needed or when upgrades or even rebates are possible. 
- Real-time monitoring of all (or selected) applications running on the computers within the organization in order to detect unregistered or unlicensed software and prevent its execution, or to limit its execution to within certain hours. The systems administrator can configure the software metering agent on the computer, for example, to prohibit the execution of games before 5 pm
- A plan for allocating software to a specified format and a record of usage and attempted usage. A company can check out and check in licenses for mobile users, and can also keep a record of all licenses in use. This is often used when limited licenses are available to avoid violating strict license controls.
- A method of software licensing where the software is automatically used, or the user pays the country fees based on this actual use (also known as ‘pay-per-use’)
Provides a set of standards for a standard set of standards across all levels of a company.
One of the main functions of the software is to keep track of the software usage statistics in an organization. This assists the IT departments in keeping track of software, which is often from multiple software vendors. Desktop or Network based software metering packages can provide an “inventory” of software, give details of the software installed in the network with the total number of copies of the software often it is used by a particular department, which is used, and what add-ons are being used with it. The possible savings on the cost of renewing the licenses of rarely used programs. [ citation needed]
Short Explanation of Active / Passive Software Metering
Active software metering occurs when a user is using a metered application. Passive software is used when it is used and is not controlled by a competitor. 
- Jump up^ Kruetzfeld, Ron (2003). Pro SMS 2003 . Apress. ISBN 1-59059-698-6 .
- Jump up^ “Software Metering / SAM terms” . OMTCO Operations Management Technology Consulting GmbH . Retrieved 21 May 2013 .