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User-based licensing is designed to provide access to specific individuals, meaning that each user is granted a license tied to their individual account. This model ensures that only designated users can access the software at any given time. Conversely, concurrent licensing allows for a set number of licenses that can be shared among multiple users. This means that any number of users can access the software at the same time, as long as the number of simultaneous users does not exceed the number of licenses available.

The distinction lies primarily in the way access is controlled and allocated. User-based licensing is ideal for organizations where specific users require frequent or dedicated access, whereas concurrent licensing suits environments with fluctuating usage patterns, where not all users need access simultaneously.

In contrast, the other options do not accurately reflect the nature of user-based versus concurrent licensing. While it may be true that one type could be more expensive than the other in specific scenarios, this is not a defining characteristic and can vary by vendor and context. The assertion that they are interchangeable or that user-based licenses apply to software only while concurrent licenses apply to hardware misrepresents the fundamental differences between these licensing models.