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7steps software-licensing
 

7steps software-licensing

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    7steps software-licensing 7steps software-licensing Presentation Transcript

    • 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
    • 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
    • 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
    • Process vs. Technology
      • Our clients often think they have a technical problem
      • That's how they find us!
      • Its usually more of a process problem
      • A focus on technology alone ends up in a bad place
    • Licensing Project Lifecycle
      1. Corporate Licensing Strategy, Priorities and Vision
      2. Licensing Philosophies and Policies
      3. License Model Development
      4. Licensing Requirement Specification Development
      Your licensing project leader willdeal with every element of the lifecycle
      5. Licensing Use Case Identification
      6. Licensing Technology / Vendor selection
      7. Licensing Architecture Definition and Roadmap
      8. Licensing Workflows and Customer Experience
      9. Licensing Engineering Plan
      10. Licensing Development & Implementation
      11. Internal Preparation, Communication and Enablement
      12. External Licensing Program Roll Out
      13. Licensing Program Management and Optimization
    • 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
    • Why is software licensing a gray area for some businesses?
      License Enforcement
      License Back Office
      IT
      Sales
    • Why is software licensing a gray area
      for some businesses?
      License Enforcement
      License Back Office
      IT
      Sales
    • What are these teams really missing?
    • 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?”
    • Planning Workshops
      Sales Models
      Operations
      Enforcement
      • Begin by starting at the top
      • How are we selling?
      • How do we want tosell?
      • What if you had more control over product behavior?
      • Fulfillment and Delivery Mechanics
      • What happens when our sales teams place an order?
      • What do we want to happen?
      • How do we want to deliver?
      • Talk about your customer experience
      • Licensing Requirements
      • Where do we add controls?
      • How do we feel about security vs. piracy?
      • Technology investigation
    • Building the Vision
      • Ah… land ho!
      • I can see it!
    • CA
      PM
      CLM
      BU
      Mfg
      Tools
      Software Activation - Critical Components
      Initial Requirements & Platform dependent work
      Size and Scoping requirements and dependencies, prioritization and Consistency
      Enabling platform Independent technology & 3rd Party engagement
      License generator, Install licenses on new devices
      IOS Infra
      Cisco Product License Registration Portal
      Portals for various licensing workflows
      Cisco.com tools e.g. Feature Navigator
      Fulfillment
      Network-wide License Management Tool
      Customer support and and troubleshooting
    • Workshop Outcomes
      On process vs. technology…
      • “When you started with all the process discussions yesterday, I really wondered where it all was going. But now I realize they were exactly the conversations we needed to have”
      - US Software Vendor
      • “If we are only focus on the technology, we will fail. We have to have a broader view and look at all the processes surrounding the technology”
      - EMEA Software Vendor
    • 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
    • Case Study
      • Vision and business process evolution in practice
      • Streamlined processes
      • Consolidation
      Let’s look at how one company dealt with this problem…
    • Original State
      • Licensing Landscape
      • 120 software products
      • ~$500M in annual revenues for product protected with license enforcement
      • 3 unique licensing technologies
      • 3 unique customer experiences for license key fulfillment
      • License key generation
      • 50% of all keys generated manually using 13 full time headcount worldwide
      • Automated tool used for the remaining 50%
      • Pain Points
      • Manual license key generation was expensive and slow
      • Supporting separate customer experiences was confusing and not optimal
      Manual process = $$$
      80% of the total cost was in headcount!
    • Getting Efficient, Y2
      • Major changes
      • Moved all license key generation to a single, scalable platform with a customer self-service web portal
      • Consolidated user workflows to a single experience
      • Reduced licensing support staff by 5 headcount
      • Licensing Landscape
      • Consolidated to 2 licensing technologies
      • Single customer experience for license key fulfillment
      • Single sales rep experience for issuing evaluation keys
      • Result
      Additional 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%
    • Scalability pays off big, Y4
      Do we need to add 14 more people?
      • Major changes
      • ISV completed 4 incremental acquisitions
      • Added 100+ incremental products
      • Licensing Landscape
      • Each acquired company had their own license key systems with a total of 14 headcount manually generating keys
      • Result
      The ISV moved all 4 license managers of the acquired companies to their corporate standard at minimal cost
      No!
      Zero.
    • Cost comparison
      • The “do nothing” trajectory
      Had the company maintained multiple licensing systems and manual key generation:
      Potential run rate
      • Actual performanceScalable customer-self service license key fulfillment system:
      Actual!
    • What’s the Lesson?
      By introducing a self-service entitlement and
      customer fulfillment portal, the ISV:
      • Reduced licensing support costby 38% in the first year and by 66% including acquisitions
      • Delivered a single customer experiencefor their entire product portfolio
      • Developed a scalable corporate standardfor license key delivery
      • Absorbed multiple acquisitionsat reasonable incremental cost
    • Centralized License & Entitlement Management
      IT: One license backoffice system to manage that can support multiple licensing technologies
      Operations: Single tool for defining licensing models and license definitions
      End User: Single self-service license management portal
      Customer Service: Can assist customers with entitlement lookup and activation
      Sales & Marketing: Track entitlements and activations
      Product Management: collect and analyze product entitlement and activation data
    • 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
    • Why licensing implementations fail
      Improper focus
      • “Well, this is a development and IT project, right?”
      • “Engineering our products to use keys solves our problem, right?”
      • “Our IT guys can easily build a system to deliver keys, right?”
      Lack of Ownership and Expertise
      • Many stakeholders across the company but no real owner
      • Leadership by committee isn’t a formula for success
      • Not considering all the stakeholders and use cases can lead to inadequate designs
      Not prepared for impact
      • Customer licensing (system down) issues escalate through sales and support quickly
      • Inadequate business processes lead to confusion and frustration
      • Poor licensing designs can be slow and expensive to correct after going live
    • 7 Habits of Successful Licensing Implementers
      They …
      Have a clear internal owner
      Have well-defined licensing philosophy and policies
      Focus on the use cases
      Focus on data structure and quality
      Focus on their customers
      Harvest valuable business analytics
      Conduct annual business reviews
    • Complete Software Licensing Solution
    • Choosing the Right Licensing Models
      Time limited
      Shared
      User reservation
      Pay-per-use
      Perpetual
      Commuter
      Volume Transaction
      Licensing (VTL)
      Hold License / Time
      (minimize downtime)
    • Enterprise Features
      Log file encryption
      Redundant Servers*
      (3 - 11 servers)
      License Revocation
      Queued Licenses
      Capacity Licensing
      Grace Period*
      * minimize downtime
    • 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
    • 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
    • Ask the Experts
      Q&A
      Please submit your question using the ASK A QUESTION button on your screen
    • 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
    • Thank You