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7steps software-licensing

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  • 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
  • 4. Process vs. Technology
    • Our clients often think they have a technical problem
    • 5. That's how they find us!
    • 6. Its usually more of a process problem
    • 7. 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
  • 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?”
  • 13. Planning Workshops
    Sales Models
    Operations
    Enforcement
    • Begin by starting at the top
    • 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?
    • 25. Technology investigation
  • Building the Vision
    • Ah… land ho!
    • 26. 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
  • 27. 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
  • 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
  • 29. Case Study
    • Vision and business process evolution in practice
    • 30. Streamlined processes
    • 31. Consolidation
    Let’s look at how one company dealt with this problem…
  • 32. Original State
    • Licensing Landscape
    • 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 optimal
    Manual process = $$$
    80% of the total cost was in headcount!
  • 43. Getting Efficient, Y2
    • Major changes
    • 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. 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%
  • 52. Scalability pays off big, Y4
    Do we need to add 14 more people?
    • Major changes
    • 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. Result
    The ISV moved all 4 license managers of the acquired companies to their corporate standard at minimal cost
    No!
    Zero.
  • 58. 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!
  • 59. 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
    • 60. Delivered a single customer experiencefor their entire product portfolio
    • 61. Developed a scalable corporate standardfor license key delivery
    • 62. 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
  • 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
  • 64. Why licensing implementations fail
    Improper focus
    • “Well, this is a development and IT project, right?”
    • 65. “Engineering our products to use keys solves our problem, right?”
    • 66. “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
    • 67. Leadership by committee isn’t a formula for success
    • 68. 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
    • 69. Inadequate business processes lead to confusion and frustration
    • 70. 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
  • 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

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