"Pricing policy is an executive matter" – this should underline how important it is who defines prices and how they are defined. If the price is too steep, you scare off potential customers and lose revenue. If the price is too low, you may win more customers, but the revenue will plateau at some point, because the increased numbers will not make up for the financial shortfall. Low prices naturally affect profits, and sometimes dramatically so. For software developers, retail prices are directly related to different licensing options. The most common choices are still the traditional "One-off purchases" or "One-off purchases with maintenance contracts". But there are more and more software vendors offering more modern models like subscriptions or consumption-based licenses. This webinar will cover both the commercial and the technical sides of these licensing models, specifically consumption-based models. For pricing decisions, two factors matter most: "What does it cost me to produce the software?" and "What is the software worth to our customers?". In many cases in the market, the second question ought to take precedence both when calculating prices and when trying to sell the actual software: "This printer can print 1000 pages" might be a great statement for gadget lovers. But when trying to sell the printer’s real added value, it should be "This printer is 20% faster and can save you a lot of expensive labor." Modern licensing models can benefit from using cloud solutions, as the cloud makes it easy to capture and collect usage data immediately and renew subscriptions on the fly. But has the whole world really gone online already? Our experts at Wibu-Systems know: That is not true. In industrial shopfloor scenarios in particular, there is so much legitimate concern about cyberattacks, sabotage, or data theft that many devices are not always available online. Often, outbound connections through dedicated gateways are the limit of what can be accepted. And availability is also another legitimate worry for many users of cloud services. It only takes a misguided shovel, and the fastest fiberoptic interconnection is cut and production comes to a standstill. What good is a 20% faster connection with a network printer, if the printer has been physically cut from the network? All the time and effort saved with modern connectivity is quickly lost again to such incidents. The technical part of the webinar will cover the concrete ways to implement consumption-based licenses with CodeMeter.

1. How and Why to Create and Sell
Consumption-Based Licenses
Ruediger Kuegler
VP Sales & Professional Services
Florian Schneider
Product Manager
Consumption-Based
Licenses
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2. Where to find the accompanying audio
To access the on-demand replay of this masterclass, please visit
www.wibu.com/wibu-systems-webinars/consumption-based-licensing/access
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3. License Models
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4. Favorite License Models
 One-off purchases and perpetual licenses
 Optionally, with Maintenance Subscriptions
 Optionally, Features-on-Demand
 License Subscriptions
 Recurring Revenue
 Optionally, a few packages (2..3)
 Consumption-based licenses
 Pay-per-Click / Pay-per-Time / …
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5. Consumption-Based Licensing vs. Traditional Models
 Pro Consumption-Based Licensing
 Reaching new target groups (sporadic users)
 Fair charging of values for user
 Contra Consumption-Based Licensing
 Expensive (too high?) price for power users
 Less predictable than subscription licenses or maintenance subscriptions
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6. Online and Offline
Scenarios
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7. Online and/or Offline?
 In Online scenarios, license usage can be recorded easily and monitored
in real time
 License Server at vendor side (in the Cloud)
 In Offline scenarios, license usage needs to be recorded offline and
transferred securely to the vendor
 Prepaid contingents
 Storage in the license, automatic transfer with the next license update
 Storage in a protected license tracking file and file transfer
 CodeMeter offers tracking in Online and Offline scenarios
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8. Implementation with
CodeMeter
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9. Live Demo – Unit Counter
 Defining a separate Product Code per Features
 Defining a Unit Counter
 Click-based measurement
 Decrement via API in Software
 Time-based measurement
 Decrement via API in Software
 Decrement via AxProtector
 Offline: Getting Feedback from Context File
 Online: Checking Unit Counter in CodeMeter Cloud
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10. Live Demo – License Tracking
 Definition of a separate Product Code per Features
 Activating License Tracking
 Getting Feedback from reporting file
 Reporting in CodeMeter WebAdmin available for user
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11. Use Case 1
It’s Christmas Time
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12. POS Cash Register Software for Retailer Industry 1
 Customer Journey
 15 Lines maximum capacity
 Before Xmas: 2 more special counters in the front of the store
 Customer needs: 15 permanent licenses + 2 overflow licenses
 CodeMeter Implementation
 1 Product Item with 15 licenses (License Quantity = 15)
 1 additional Product Item with same Product Code, 2 licenses and Unit Counter
 Software decrements Unit Counter every minute
 Check and refill Unit Counter once per year
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13. POS Cash Register Software for Retailer Industry 2
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14. Use Case 2
Complete Software Suite
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15. Civil Engineering Software – Complete Suite for Rent 1
 Customer Journey
 Vendor offers 40+ different products
 Some users need different products, but only for a short time
 Creation of time-based complete suite package
 CodeMeter Implementation
 Different Product Codes for every product – One additional for complete suite
 Encryption with AxProtector and 2 Product Codes (product + suite)
 Decrement of Unit Counter every minute
 Selling different time contingents (Units) online
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16. Civil Engineering Software – Complete Suite to Rent 2
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17. Use Case 3
Pay-per-Exam
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18. Driving School Software 1
 Customer Journey
 Software is sold with pay-per-click model
 Every exam costs xx €
 No perpetual license available
 CodeMeter Implementation
 CodeMeter Core API is used to decrement the Unit Counter when an exam is taken
(after print of exam result)
 Packages with n Units are sold
 Software is protected using AxProtector (to prevent reverse engineering)
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19. Driving School Software 2
CmAccess2 cmacc2 = new CmAccess2();
cmacc2.FirmCode = 6000947;
cmacc2.ProductCode = 1001;
var handle = api.CmAccess2(CmAccessOption.Local, cmacc2);
CmCrypt2 cmcrypt = new CmCrypt2();
byte[] data = GetRandomData(16);
cmcrypt.BaseCrypt.EncryptionCodeOptions |= 1; // decrement by 1
var res = api.CmCrypt2(handle, CmCryptOption.AesEncryptEcb, cmcrypt, data);
api.CmRelease(handle);
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20. Summary
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21. Summary
 CodeMeter supports all license models:
 Perpetual, Features-on-Demand, Subscription, Consumption-Based, and any
combination thereof
 CodeMeter supports Online and Offline scenarios
 Unit Counter measures Time and Actions (Clicks)
 Pre- and post-paid billing
 APIs for process integration
 License Tracking
 Detailed usage statistics for user and vendor
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22. https://www.wibu.com
info@wibu.com
Europe: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
Japan: +81-45-5659710
Many thanks for your kind attention
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