xTuple's license manager (in the commercial Editions of the software) counts only concurrent users connected to the database. While you'll want to set up accounts on the system for all of your named users, from a licensing perspective, we only count the ones connected at any given time. As a general rule, allow for one (1) or two (2) seats more than you think you need — to allow room for growth and unencumbered usage at peak times in your business. The license manager also distinguishes between internal xTuple users connecting via the xTuple client or another xTuple GUI tool (CSV import, xTuple Connect, etc.) and external connections to the database by other programs, including any Web-based systems, database tools, and other custom applications you may need to connect to xTuple through the APIs. For all on-site commercial Editions of xTuple, there is a five (5) user minimum purchase (although there are no minimums in the xTuple Cloud service). For every internal xTuple user license you purchase, you receive an external license at no additional cost, e.g., if you buy a five-user license, you can have up to ten (10) concurrent connections to your xTuple database, of which up to five (5) can be via the xTuple client. More on License Options.