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Aligning Business Models and Technology Architectures Luke Hohmann CEO, Enthiosys Feb 27, 2008
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],About Luke Hohmann
Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
A Reminder… ,[object Object],[object Object],[object Object],[object Object],[object Object]
Some Key Business Issues  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Not exhaustive…
Business Model Framework ,[object Object],Customer ROI Model Quantifies Return Enforcement Protection of Rights Licensing Terms and Conditions of Use Type of Value Exchange The way you make money Profit Engine Causes More Money Making Events Customer Value Analysis Identifies Value Pricing How much money you make
Value Exchange Models ,[object Object],[object Object],[object Object]
Core Value Exchange Models ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Charity?
Time-Based Access ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Transaction ,[object Object],[object Object],[object Object],[object Object],[object Object]
Meter ,[object Object],[object Object],[object Object],[object Object],[object Object]
Hardware ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Service ,[object Object],[object Object],[object Object],[object Object],[object Object]
Revenue Obtained /  Cost Saved ,[object Object],[object Object],ServiceSource, with annual revenue between $25M - $50M, says it receives compensation  based on the revenue it generates for its  clients and charges no consulting, training or implementation fees, or ongoing  management costs.  - June 29, 2005, San Jose Mercury News
Data / Content  ,[object Object],[object Object],[object Object],[object Object],[object Object]
A Smattering of Examples... Transaction Fee: Flat or % of some defined txn Visa, BEA (when used in an ASP) Perpetual License: Upfront fee +  15-22% annual maintenance ERP Annual License: Yearly License, must be renewed ERP, MSFT Per-user, Concurrent, & Named User ERP Per-CPU (Hardware) MSFT, Oracle, BEA Service (subscriptions) Anti-Virus, AOL Consumables (Meter) Printers (ink, paper)
Architectural Impact ,[object Object],[object Object],[object Object],[object Object]
Effects of  Time-Based  Access on Tarchitecture ,[object Object],[object Object],[object Object],[object Object]
Effects of  Transactions on Tarchitecture ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Licensing Terms and Conditions of Use
License Choices ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Flip-Chart Exercise ,[object Object],[object Object],[object Object],[object Object],[object Object]
SoftCo Software License License Term Meaning Grant of License:  non-exclusive non-assignable,  non-transferable USE SoftCo grants the purchaser (licensee) the right to use the software, and licensee cannot give or sell it to anyone else. SoftCo can continue to license the same software to anyone they want to Ownership of Software SoftCo owns the actual software that is licensed to the purchaser. Copy Restrictions The only copy of the software that the licensee can make is for backup purposes. Use Restrictions Licensee cannot distribute the software.  Licensee cannot crack software or derive new IP from it. Assignment and Transfer Restrictions Licensee cannot sell or give the Grant of License to anyone else without SoftCo’s permission.  If SoftCo does grant permission, the new licensee is bound by the original license
SoftCo Software License License Term Meaning Termination License is in force until terminated by SoftCo.  When terminated, licensee shall destroy or return the software and media. Update Policy Reinforces SoftCo’s ownership of the software.  SoftCo can change the software anytime without having to notify the licensee or granting use of the new software to the licensee. Export Law Licensee must abide by applicable export laws. Confidentiality Complex expression that tries to protect SoftCo’s IP contained within the software. Disclaimers of warranty and Liability Litigation attorney’s requirements.  Releases SoftCo from ANY AND ALL CONCEIVEABLE FORMS OF HARM TO THE LICENSEE IN ALL WAYS AND FOREVER.  
Common Rights ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Rights, Restrictions,  and Architectures ,[object Object]
Case Study:  Promising the Future ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Try This Now AND At Work… ,[object Object]
Enforcement Protection of Rights
Enforce? What Do You Mean? ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Motivations for License Enforcement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Enforcement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
SW License Manager Basics Protect “ Server” License Manager License Generator Embedded License Manager License
HW License Manager Basics Protect “ Server” License Manager License Generator Embedded License Manager Strong protection: a) Software and  license on key b) Must have  physical token to run! License
SW License Manager Attacks Protect “ Server” License Manager License Generator Embedded License Manager License
HW License Manager Attacks Protect License Generator Embedded License Manager “ Server” License Manager License
Tangible Costs ,[object Object],[object Object],[object Object],[object Object]
Projected Total Cost over Solution Lifetime Development cost based on US Bureau of Labor Statistics mean salary for computer software engineers. Lost opportunity cost based on  Software Magazine , "Software 500“: Average Revenue/Employee (2007). Total cost of ownership based on Gartner Research estimate of $3.40 lifetime costs for every dollar invested in initial development.
Challenges with eLicensing ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Underlying Technology Matters ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Developing The  License Model ,[object Object],[object Object],[object Object],[object Object],[object Object]
Contact and Content ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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Aligning Business Models And Technology Architectures Ore Dev Conference 2008

  • 1. Aligning Business Models and Technology Architectures Luke Hohmann CEO, Enthiosys Feb 27, 2008
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  • 16. A Smattering of Examples... Transaction Fee: Flat or % of some defined txn Visa, BEA (when used in an ASP) Perpetual License: Upfront fee + 15-22% annual maintenance ERP Annual License: Yearly License, must be renewed ERP, MSFT Per-user, Concurrent, & Named User ERP Per-CPU (Hardware) MSFT, Oracle, BEA Service (subscriptions) Anti-Virus, AOL Consumables (Meter) Printers (ink, paper)
  • 17.
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  • 20. Licensing Terms and Conditions of Use
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  • 23. SoftCo Software License License Term Meaning Grant of License: non-exclusive non-assignable, non-transferable USE SoftCo grants the purchaser (licensee) the right to use the software, and licensee cannot give or sell it to anyone else. SoftCo can continue to license the same software to anyone they want to Ownership of Software SoftCo owns the actual software that is licensed to the purchaser. Copy Restrictions The only copy of the software that the licensee can make is for backup purposes. Use Restrictions Licensee cannot distribute the software. Licensee cannot crack software or derive new IP from it. Assignment and Transfer Restrictions Licensee cannot sell or give the Grant of License to anyone else without SoftCo’s permission. If SoftCo does grant permission, the new licensee is bound by the original license
  • 24. SoftCo Software License License Term Meaning Termination License is in force until terminated by SoftCo. When terminated, licensee shall destroy or return the software and media. Update Policy Reinforces SoftCo’s ownership of the software. SoftCo can change the software anytime without having to notify the licensee or granting use of the new software to the licensee. Export Law Licensee must abide by applicable export laws. Confidentiality Complex expression that tries to protect SoftCo’s IP contained within the software. Disclaimers of warranty and Liability Litigation attorney’s requirements. Releases SoftCo from ANY AND ALL CONCEIVEABLE FORMS OF HARM TO THE LICENSEE IN ALL WAYS AND FOREVER. 
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  • 33. SW License Manager Basics Protect “ Server” License Manager License Generator Embedded License Manager License
  • 34. HW License Manager Basics Protect “ Server” License Manager License Generator Embedded License Manager Strong protection: a) Software and license on key b) Must have physical token to run! License
  • 35. SW License Manager Attacks Protect “ Server” License Manager License Generator Embedded License Manager License
  • 36. HW License Manager Attacks Protect License Generator Embedded License Manager “ Server” License Manager License
  • 37.
  • 38. Projected Total Cost over Solution Lifetime Development cost based on US Bureau of Labor Statistics mean salary for computer software engineers. Lost opportunity cost based on Software Magazine , "Software 500“: Average Revenue/Employee (2007). Total cost of ownership based on Gartner Research estimate of $3.40 lifetime costs for every dollar invested in initial development.
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Editor's Notes

  1. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  2. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  3. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  4. www.enthiosys.com Jan 22, 2007 Copyright (c) 2001-2007 by Luke Hohmann Think of “failure” in terms of degrees, not absolutes. For example, you might ship the system on time (a huge success) but be unable to extend it in any reasonable manner for future requirements (a failure).
  5. www.enthiosys.com Jan 22, 2007 Copyright (c) 2001-2007 by Luke Hohmann
  6. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  7. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  8. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  9. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  10. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  11. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  12. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  13. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  14. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  15. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  16. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann There are innumerable variations on these basic business models. Common variations include such things as minimum fees, pre-payment options, conversions, penalties, and so forth. Different modules can be offered at different rates/fees.
  17. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  18. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  19. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann
  20. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  21. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  22. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  23. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  24. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  25. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  26. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  27. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  28. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  29. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  30. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  31. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  32. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  33. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  34. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  35. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  36. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  37. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  38. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  39. www.enthiosys.com Copyright (c) 2001-2007 by Luke Hohmann
  40. www.enthiosys.com Copyright (c) 2001-2008 by Luke Hohmann