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Software Licenses
6 Months Ended
Jun. 30, 2012
Software Licenses [Abstract]  
Software License

6. Software Licenses

The Company was previously party to an agreement that provided the Company the right to distribute third-party software on a per-user basis up to 35,000,000 licenses over a four-year period for $6.4 million. The arrangement required the Company to pay a per-user license fee for licenses distributed in excess of 35,000,000. The cost was amortized to cost of revenue over a 3.5 year period ending May 2012, based on the greater of actual usage or the straight line method. The Company continues to pay maintenance and support fees under this agreement.

In 2011, the Company entered into a new agreement that provides the Company the right to distribute this third-party software on an unlimited basis through May 2016 at a total cost of $10.2 million, of which $6.5 was paid during the quarter ended March 31, 2012. To the extent annual billed license revenue over the four-year period exceeds $460 million, the Company would be required to pay additional fees. The additional $10.2 million is being amortized to cost of revenue over the four-year period beginning in June 2012 (after expiration of the previous agreement), based on the straight line method.

Amortization expense related to these agreements was approximately $1.0 million and $0.9 million for the six months ended June 30, 2012 and 2011, respectively.