Understanding Anaconda’s Upcoming Licensing Changes in 2024 

Anaconda’s recent outreach regarding software compliance highlights the importance of understanding the software publisher’s evolving Terms of Service. This article examines the implications of these changes and how they affect organizations using Anaconda’s offerings.

Since its establishment in 2012, Anaconda has emerged as a leading programming language in 2024. This popularity has led to an increase in software compliance claims as their terms of service evolves, prompting Anaconda to proactively contact customers about potential software overuse. Many users are now receiving notifications about exceeding their licensed limits and are often unaware of the commercial license requirements, mistakenly assuming that the software is free.

Overview

This outreach is tied to Anaconda’s changing Terms of Service, which were originally modified in 2020 and again in March 2024. The 2020 update requested that “commercial users who heavily rely on [our] packaging and distribution efforts purchase [our] commercial repository software.” Unfortunately, this change went largely unnoticed by many customers.

Fast forward to March 2024, and Anaconda made another change to its Terms of Service intended to consolidate legal language. However, this update now requires organizations with 200 or more employees, including government and non-profit entities, to purchase additional licenses. The change has created confusion among many users, as the consolidation of legal language made it difficult for them to identify their specific licensing obligations. 

Looking ahead, Anaconda has announced plans for an additional update in Q4 2024 to clarify these changes, aiming to provide clearer guidance on licensing requirements and compliance expectations to help organizations understand their licensing obligations more effectively. In the meantime, Anglepoint has reviewed Anaconda’s current Terms of Service to help you navigate their key software licensing requirements.

Key Licensing Requirements for Anaconda Users

When Is a License Required?

Understanding when a commercial license is necessary is crucial for compliance with Anaconda’s Terms of Service. According to Section 2.1 of Anaconda’s Terms of Service, organizations with 200 or more employees or contractors must obtain a commercial license to use the program. This requirement also applies to government and non-profit organizations, covering all activities related to the registration, download, use, installation, access, or enjoyment of Anaconda’s offerings. Additionally, paid options such as Anaconda Business and Anaconda Enterprise are included in this licensing requirement.

To reduce the risk of non-compliance and avoid potential penalties, organizations must proactively evaluate their licensing requirements and ensure they align with actual software usage.

When Is a License Not Required?

It’s equally important to recognize when a software license is not necessary, as this can provide significant benefits for organizations with fewer users.

Anaconda provides a free offering available to community users, if their usage fits into one of the following categories:

• Personal Use
• Educational Use (unless embedding, mirroring, or providing third-party access to Anaconda products)
• Open Source Use
• Small Business Use (for businesses with fewer than 200 employees or contractors)

Understanding the End-User License Agreement (EULA)

The End-User License Agreement (EULA) establishes the essential framework that governs how organizations utilize Anaconda’s software. Understanding the key concepts of the EULA is vital for organizations to maintain software compliance, mitigate risks, and fully leverage their software investments, enabling efficient operations and strategic resource allocation.

Here are some critical aspects that organizations should be aware of regarding the EULA:

• Defining Authorized Users:
  The EULA defines “Authorized Users” as individuals you permit to use the on-premise products for your benefit, in accordance with the agreement. While other software publishers require unique credentials to define authorized users, Anaconda does not specify this in its EULA (Anaconda Privacy Center).
• Compliance Monitoring and Audit Rights:
  Anaconda is reaching out to customers regarding a software audit prompted by observed download activities that exceed acceptable license limits. As we discussed earlier, organizational usage includes all downloads and installations, and the General License Grant (1.1) allows Anaconda to monitor software usage to ensure compliance with its Terms of Service.
• Right to Audit Verification Records (14.1):
  During the usage term for a period of thirty six (36) months after its expiry or termination, organizations must maintain accurate records of their use of Anaconda offerings to verify compliance. Anaconda and its auditors will have reasonable access to these records upon advance notice.
• Quarterly User Count (14.2):
  Anaconda conducts periodic true-ups to align the actual number of users with the initially reported user count. This review includes an assessment of any unauthorized or noncompliant usage.
• Penalties for Overage or Noncompliant Use (14.3):
  Should the actual user count exceed the initially reported figure, organizations must compensate Anaconda for any additional users or noncompliant usage in accordance with current pricing terms. If no custom commercial agreement exists at the time of a true-up, organizations will owe a settlement amount or back bill for unauthorized usage since April 2020.
• Identifying Non-Compliance (13.6):
  Anaconda reserves the right to determine non-compliance based on various criteria, including excessive network traffic, content size and length, quality and format, sources of content, and download volume.
• Consequences of Non-Compliance (13.6):
  In cases of non-compliance, Anaconda may block or restrict access to its offerings, highlighting the need for strict adherence to licensing requirements.

Navigating Anaconda’s Licensing Changes and Ensuring Compliance

As with any software publisher, understanding the End-User License Agreement (EULA) and Terms of Service is crucial for compliant software usage. Organizations must stay informed about licensing requirements to avoid potential penalties and maintain a positive relationship with software providers like Anaconda. By addressing compliance preemptively, you not only safeguard your organization but also position yourself for continued success in leveraging Anaconda’s powerful offerings.

As Poppy Gacke, Lead Consultant at Anglepoint, explains

“In 2020, Anaconda changed their terms to state that any commercial users who heavily rely on packaging and distribution from Anaconda would be required to purchase licenses. However, there was ambiguity around what constitutes ‘heavy reliance,’ making it critical for organizations to carefully assess their usage.”

Take the Next Step for Compliance and Growth

For expert guidance in navigating these licensing changes, connect with Anglepoint. Our team is dedicated to helping your organization maintain compliance with the latest updates and maximize the value of your software usage.

By partnering with us, you can stay ahead of the curve, ensuring your licensing agreements are regularly reviewed and aligned with Anaconda’s evolving terms. Let Anglepoint’s experts help you achieve compliance while fully leveraging Anaconda’s offerings. Contact us here.