The process (or result) of using up license entitlements granted under a license agreement. For example, suppose you are entitled to install 3 copies of some software under a device-based license. When you install the first copy of the software, you have consumed one of your entitlements. After 3 installations, you have consumed all your entitlements, and any further installations put you in over-utilized of your license agreement.

IT Asset Management (Cloud)