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Effective SFDC License utilisation

I am integrating an application with Salesforce.com. I have 100 licenses in SFDC. Whereas 1200 users in the application.
 
How can I make those 1200 users use these limited licenses in such a way that the data from users be unique in SFDC.
 
Any business model that can support the requirement will be helpful.
 
 
Thanks in advance.
werewolfwerewolf
I hate to be a stick in the mud, but I'm not sure your SFDC master service agreement permits repeated license-swapping among users, unless you got an exception...
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We shall be utilising the limited storage space allocated to a licenses. Its just I want to manage the the users utilising this license.