a company that allows you to license software monthly to use online is an example of

A company that allows you to license software monthly to use online is an example of Subscription

Explanation:

A software license is an agreement between individuals, companies or email that authorizes the use of that software and its application. As each person or company has a different economic situation so licensing ways have been introduced. There are five options .i.e. Stand-alone, Networked, Site, Cloud, and Subscription.

Subscription:

In this case, you are renting a software on a subscription basis instead of buying permanently. The facility in the subscription is that instead of paying collective upfront for the software you are charged monthly, quarterly and annually.

Subscription software is good for short-term projects, temporary staff, and other institutions when you need a program for limited use.

Subscription is now a days is a trending way of using software on lease instead of buying permanently. Because these are updated and available to use on easy packages. Sometimes permanent software are very hard to purchase because of their higher prices.