Earlier quoted context omitted.
Having to put a physical device on your parallel port at the back of the computer is kind of annoying, especially if every software you use has one. More common for games was to use the media itself for copy protection, using a variety of tricks to make copy more difficult. Other techniques involve printing some keys you have to enter using colors that don't render well in photocopies, or have you look at words a cer…
Makes me sad how many person-years of effort have been wasted over the years on futile dongle-engineering, copy-protection and DRM. They're pretty much all cracked. And the industry keeps insisting on trying!
As for enterprise software, pros usually don't want the potential legal trouble associated with cracked software, and dongles are just about not making is easy to violate the licence by accident.