This document summarizes software piracy and license compliance statistics and trends from 2015-2016. It finds that China contributed the most to software piracy in both years, though Iran increased in rank. Most piracy originated from the architecture, engineering and manufacturing industries. Geolocation data using WiFi networks helped identify organizations, and revenue recovery efforts were most successful in Western Europe and North America. Overall unlicensed software use remains a global challenge.
Show Me the Data! 2016 Software Piracy and License Compliance Stats and Trends
1. Show Me the Data!
2016 Software Piracy and License Compliance Stats and Trends
February 2017
Vic DeMarines
VP, Products & Strategy
Michael Goff
Marketing Director
2. Topics
• About Revulytics and Data Optimizer
• Statistics and Trends
• Wi-Fi Geolocation Data
• Revenue Recovery Results
• Observations
3. Poll Question
Are you seeing an increase in application data being used for compliance efforts?
Confidential
• Yes
• No
• Wait, we have data?
4. Revulytics offers software producers cloud-based
solutions that generate actionable intelligence on
the use and misuse of their applications
Confidential
Compliance
Analytics
• Identify and quantify
software use and misuse
• Create actionable
intelligence
• Turn intelligence into direct
revenue
• Revenue recovery services
Usage
Analytics
• Track and analyze
product usage
• Increase customer
acquisition and retention
• Generate revenue with
better products
5. Software Piracy Statistics
Methodology
Leveraging the Data Optimizer Service
• Centralized organization domain database to automate the matching of intelligence
data to organizations
• Subscribers query the service through the dashboard, and a category, company
name, and address are returned
• More than 1.3M Domains; Queries received in 2015 (203k) and 2016 (273k)
Compliance
Dashboards
Federated
Domains
LinkedIn
Investigation
team
CertificatesGeo-location
Multiple
WHOIS
Domain
Queries
Company,
EDU,
Gov, etc.
7. Egress Country Code Comparison 2015 and 2016
Confidential
CN
26%
RU
6%
US
6%
IR
5%IN
4%
Other
52%
2015
CN
31%
RU
5%
US
6%IR
6%
IN
4%
Other
48%
2016
Total:
203,396
Total:
272,689
8. Egress Country Code Comparison 2015 and 2016
“Other” Country Code Breakdown
Confidential
VN 6%
DE 5%
IT 5%
BR 5%
TR 4%
TW 3%
FR 3%
Other 69%
2015
VN 6%
DE 5%
IT 5%
BR 4%
TR 5%
FR 3%
KR 4%
Other 69%
2016
Total:
106,219
Total:
131,990
9. Government Domain Trends
Queries resolved to Government By Egress Country
Confidential
• 0.6% queries match to Government entities
• Largest percentage is in the US
US 13%
RU 6%
MX 5%
BR 5%
IT 4%
TR 3%
Other 64%
Total:
5,445
FR 5%
UA 4%
PL 4%
ES 4%
CL 4%
PE 3%
Other 76%
10. Poll Question
Are you using this type of data to support your go-to-market strategies?
Confidential
• Yes
• No
• Not Sure
11. Top Egress Countries 2015 & 2016
Unique Domain Queries
Confidential
• Do trends suggest impact of
sanctions?
• Iran moves up a position
• Easing sanctions in January
2016
• New Iran based piracy portals
appeared in 2016
• Russia moves down
• “President Vladimir Putin’s
calls for more digital
sovereignty”
12. Fortune 100 and Software 100 Trends
Confidential
Fortune 100 companies identified within Data Optimizer
Software 100 companies identified within Data Optimizer
51
100
2015
82
100
2016
78
100
2015
86
100
2016
13. Matching Organizations with IP Addresses
Confidential
• Using Organization IP Addresses is usually the first place clients start to scope or
begin a data-driven compliance solution
Sometimes available with activation telemetry
IP Address only = 2.6% (WHOIS and Certificate Data Providers used)
Expected match rates (based on 249,173 IP addresses collected in 2016)
• Improving results with IP Address Data
Leverage Customer support or marketing IP analytic databases
Customer example (CAM provider): 11% of machines reporting had IP addresses linked to
organizations based on marketing data
• IP address enriched with Revulytics Domain Data = 48%
14. About Wi-Fi Geolocation
Confidential
• The Google Maps Geolocation API
returns a location and accuracy
radius based on information about
cell towers and Wi-Fi nodes
• Introduced by Revulytics in 2016
• Used to confirm location, and
valuable to aid compliance
investigation
Match against suspect or
unknown data
Help organizations confirm location
Reaffirm complex compliance cases
15. Wi-Fi Geolocation Stats – Average Accuracy
Confidential
• Sample Size
27,713 events
21,021 machines
• Average range
Min = 20M
Max = 289M
• Data from the
following industries
Desktop
productivity
CAE
BIS
Country Average Accuracy (M)
Spain 33.8
Italy 34.1
Germany 35.8
Mexico 36.8
France 41.1
Ukraine 44.2
US 44.6
Russia 46.8
China 55.6
16. Poll Question
What % of machines running your software would connect to the internet via Wi-Fi?
Confidential
1) <15%
2) 15%
3) 21%
4) 43%
5) > 43%
17. Poll Question
What functional area leads your compliance program?
Confidential
• Finance
• Legal
• Sales or Sales Operations
• Not Sure
• Other
18. Revulytics Revenue Services
Confidential
• Global compliance partner with deep compliance
intelligence experience
• Augment efforts with inside sales, software audit, legal
enforcement, and raid services
• Manage programs beginning to end, or work hand-in-
hand to support internal teams
• Well-versed in local law and fluent in more than 12 local
languages
19. Revenue Recovery Results
What can you expect?
Confidential
• Pipeline
35% global closed won rate
Desktop publishing application
23% close rate (worldwide)
$1,376 average deal size
Visual effects plugin
42% close rate (mostly NA, W Europe)
$1,923 average deal size
41% open
24% closed lost
22. Observations
Confidential
• Unlicensed use continues to be a global challenge, impact the largest organizations
• Enrichment of IP addresses can help discover compliance opportunities, but
additional information needed to support a robust compliance program
• Wi-Fi data offers a new approach to accelerate organization identification and
reaffirm compliance actions
Data shows a connected world for even high value applications
• Data driven compliance programs offer a method to scope extent of the compliance
opportunity
• Don’t ignore historically challenging regions
Don’t be swayed by concerns with data protection regulations, local language limitations,
etc. – we’re seeing success
23. Questions
Confidential
• Thank you for joining us today!
• Please enter your questions in the GoToWebinar control panel’s Questions box
• You will receive a link to the webinar recording
Vic DeMarines
VP, Products & Strategy
Michael Goff
Marketing Director