7 Steps to the Software Licensing (R)evolution: How to Boost Software Profits With New Licensing & Entitlement Best Practices

1. 7 Steps to the Software Licensing (R)evolutionHow to Boost Software Profits With New Licensing & Entitlement Best Practices Have a Question? SRMQuestions@SafeNet-Inc.com Learn more: www.safenet-inc.com/Sentinel Darim Rahmatallah – Product Management, SafeNet Bastiaan Van Dorsten – Pre Sales Consultant, SafeNet David DiMillo – Principal Consultant, SafeNet

2. Who is SafeNet? SRM ExpertiseLeader in anti-piracy, IP protection, enterprise licensing, entitlement management and SaaS application management solutions (Sentinel) Global 25,000 customers in 100 countries Employees 1,600 in 25 countries Revenue ~$450 million Position 4th largest global security company Founded 1983

3. What Are Some Teams Saying? “We need more control over customer usage” Lots of information in small buckets “where do we begin??” “who is going to own this? Not it!” “this is more work than we thought it would be” Result – a bit unorganized and unsure where to start

5. That's how they find us!

6. Its usually more of a process problem

8. Business Integration 1. Corporate Licensing Strategy, Priorities and Vision 2. Licensing Philosophies and Policies 3. License Model Development 4. Licensing Requirement Specification Development Business Process Integration Technology Integration 5. Licensing Use Case Identification 6. Licensing Technology / Vendor selection 7. Licensing Architecture Definition and Roadmap Gravity 8. Licensing Workflows and Customer Experience 9. Licensing Engineering Plan 10. Licensing Development & Implementation “You likely have as many business process challenges as technical issues” 11. Internal Preparation, Communication and Enablement “Technology alone is not going to solve your problem” 12. External Licensing Program Roll Out 13. Licensing Program Management and Optimization

9. Why is software licensing a gray area for some businesses? License Enforcement License Back Office IT Sales

10. Why is software licensing a gray area for some businesses? License Enforcement License Back Office IT Sales

11. What are these teams really missing?

12. The Vision “how do all the pieces fit together?” “how is it all going to work?” “what things can we outsource?” “what things do WE have to do?”

14. How are we selling?

15. How do we want tosell?

16. What if you had more control over product behavior?

17. Fulfillment and Delivery Mechanics

18. What happens when our sales teams place an order?

19. What do we want to happen?

20. How do we want to deliver?

21. Talk about your customer experience

22. Licensing Requirements

23. Where do we add controls?

24. How do we feel about security vs. piracy?

28. Workshop Outcomes UK CompanyIdentified 4 new ways to sell through the workshop US CompanyCame to the workshop with little idea of how things would work. Had their vision in hand 2 days later. EMEA CompanyIdentified a customer compliance problem during the workshop they didn't know they had

30. Streamlined processes

31. ConsolidationLet’s look at how one company dealt with this problem…

33. 120 software products

34. ~$500M in annual revenues for product protected with license enforcement

35. 3 unique licensing technologies

36. 3 unique customer experiences for license key fulfillment

37. License key generation

38. 50% of all keys generated manually using 13 full time headcount worldwide

39. Automated tool used for the remaining 50%

40. Pain Points

41. Manual license key generation was expensive and slow

42. Supporting separate customer experiences was confusing and not optimalManual process = $$$ 80% of the total cost was in headcount!

44. Moved all license key generation to a single, scalable platform with a customer self-service web portal

45. Consolidated user workflows to a single experience

46. Reduced licensing support staff by 5 headcount

47. Licensing Landscape

48. Consolidated to 2 licensing technologies

49. Single customer experience for license key fulfillment

50. Single sales rep experience for issuing evaluation keys

51. ResultAdditional spend of $165K in tooling enabled $500K/yr cost reduction in headcount plus delivered a single and much more feature-rich customer experience With a much better user experience! Reduced headcount cost by 38%

53. ISV completed 4 incremental acquisitions

54. Added 100+ incremental products

55. Licensing Landscape

56. Each acquired company had their own license key systems with a total of 14 headcount manually generating keys

57. ResultThe ISV moved all 4 license managers of the acquired companies to their corporate standard at minimal cost No! Zero.

60. Delivered a single customer experiencefor their entire product portfolio

61. Developed a scalable corporate standardfor license key delivery

63. Sentinel™ EMS in Action Service Tier Nodes ISV User (YOU) ISV App API Runtime Partners SCC Define Load Balancer Entitle Authentication Server Control Report Internal Support Sales Prod Mgt

65. “Engineering our products to use keys solves our problem, right?”

67. Leadership by committee isn’t a formula for success

69. Inadequate business processes lead to confusion and frustration

71. Complete Software Licensing Solution

72. Choosing the Right Licensing Models Time limited Shared User reservation Pay-per-use Perpetual Commuter Volume Transaction Licensing (VTL) Hold License / Time (minimize downtime)

73. Enterprise Features Log file encryption Redundant Servers* (3 - 11 servers) License Revocation Queued Licenses Capacity Licensing Grace Period* * minimize downtime

74. Advanced Feature Set Advanced Feature Set Standard Feature Set Feature Based Licensing Benefits License multiple modules, components or features within a single product. Always ship entire product allowing access to specific applications only. Deliver upgrades by delivering licence updates. Vendor End Customer ¥ £ $ € Activate standard feature set Upgrade to advanced feature set No new software delivery required

75. Licensing & Entitlement Management Secure Software Licensing Solutions - Out-of-the-box licensing security solution - Flexible, highly scalable, enterprise-grade licensing toolkit Sophisticated Software License & Entitlement Management - Web-based software license and entitlement management system Cloud Services SaaS Licensing & Entitlement Management Services - Packaging, provisioning, metering, and management services for SaaS applications Software Licensing Professional Services Professional Services - Software licensing consulting and implementation services

76. Ask the Experts Q&A Please submit your question using the ASK A QUESTION button on your screen

77. The software licensing community to share ideas, find experts, and learn about the latest trends. SafeNet on the Webwww.SafeNet-Inc.com/Sentinel LicensingLive Blog www.LicensingLive.com Twitter www.twitter.com/LicensingLive LinkedIn http://www.linkedin.com/groups?gid=2878111 YouTube www.youtube.com/user/LicensingLive BrightTalk Webcasts http://www.brighttalk.com/channel/5572

78. Thank You