5 Tips to Get Started

1. 5 Tips
to Get Started
How Can
You
Monetize
the Internet
of Things?

2. Especially if you manufacture intelligent connected devices.
Traditionally each device model stood alone,
and changing functions required a new device.
Things are changing.

3. Now users demand more.
Users are less interested in
devices and more interested in
flexible solutions:
• More functions next week
• Cost savings next quarter
• Increased speed and
capacity next year

4. The Internet of Things (IoT)…
…is driving new business models!

5. IoT isn’t about selling physical devices.

6. It’s about leveraging the software in your device
to provide a “service” and “value.”
Functions, flexibility, speed, capacity,
timely upgrades...and more.
Device-Centric Model
Specialized physical device
vs.
Static product
Flexible ecosystem: device, software,
capacity, speed, etc.
Platform for variable offerings
User can develop new use cases
Service Model

7. It’s a new way of thinking.
to your software,
the firmware and applications,
that drive functionality
and value for users.
shifts
Instead of focusing on the physical device,
the spotlight

8. change its functions via licensing and the cloud.
Without physically changing
the device, you can
So the customer always has
“exactly what I need.”

9. licensing & entitlement management
is the key to unlocking value
In that approach,
It’s how you enable your IoT strategy.
Licensing Entitlement Management
Defines the contractual
relationship with the customer
Details the specific capabilities the
customer can access—what, when,
how much, for how long, etc.
&

10. these 5 tips can point the way
If you’re wondering how you might leverage your
current intelligent devices and apps
to higher revenues, competitive advantages,
and lower costs.

11. 1. Simplify
2. Differentiate
3. Drive Revenue
4. Grow Your Market
5. Protect Your IP

12. Simplify

13. 1 Simplify
• Ship a single device model (or just a few) containing
all configurable functions, rather than a separate
model for each product tier, customer segment, or
other market need
• Turn features on and off to create ‘exactly right’
solutions - licensing & entitlement management
technology makes it easy and secure
TIP
Leading building technologies
company went from hundreds
of SKUs to just a few,
simplifying manufacturing,
inventory, and distribution.
Read the story

14. Differentiate

15. 2 Differentiate
Fast customization - quickly
create unique, high-value solutions
Niche solutions – differentiate with software
and monetize the value
Speed to market - roll out new
“models” before competitors
Flexible pricing - provide multiple
licensing options (concurrent, floating,
subscription, usage-based, overage, etc.)
Easy to buy - offer evaluations
without risking your IP will be stolen
Free trials and on-the-fly
reconfigurations give Convey
Computer’s hybrid-core servers
a competitive edge.
Read the story
TIP
Strengthen your competitive edge using
effective licensing & entitlement management

16. Drive Revenue

17. 3 Drive Revenue
TIP
Device
Software
Licensing
Use licensing & entitlement technology to:
• Create a self-serve portal for customers
• Configure and test new pricing models
• Capture data on customer usage patterns to
- Spot up-sell/cross-sell
- New product opportunities
Quickly create new product
configurations and license models to
take advantage of new revenue
opportunities…
Read the story
+
+
= New and
recurring revenue

18. Grow Your Market

19. 4 Grow Your Market
TIP
• Meet regional or individual customer
requirements by quickly ‘slicing and
dicing’ product features, capacity, and
more
• When entering a market, trial usage
may give you traction. Licensing &
entitlement automation makes that
easy, while protecting your
intellectual property
• Re-consider niche opportunities that
once seemed too small or fleeting. The
ease of creating Lite, Standard and
Premium packages may bring some of
those incremental opportunities within
reach
The IoT makes it
easier to move fast
and build
momentum in
new territories or
industry segments.
A leading global specialist in energy
management needed a Software
Monetization solution that would give the
company flexibility to quickly adapt and
take advantage of new business
opportunities such as the Internet of
Things by standardizing software licensing,
entitlement management and delivery onto a
single, consolidated platform across its
traditional and digital software business.
Read the story

20. Protect Your IP

21. 5 Protect Your IP
TIP
...protects against
piracy while giving you
product, pricing, and
service flexibility
across the IoT
...lets you protect your
IP on virtual solutions
with customer-specific
usage-based trust and
enforcement strategies
...enable customers to
self-serve for feature
upgrades with accurate
and timely data sent to
your back-office system
CPU Tech needed to protect their intellectual property while allowing the customer to
operate in a classified/ secure area without internet access.
Read the story
Effective licensing & entitlement management...

22. • Shift your focus from the physical device to
one of software, the firmware and
applications, that drive functionality and value
for users
• Build one device model with all capabilities, turn
features on/off to create ‘exactly right’ solutions
- Simplifies manufacturing, inventory and distribution
- Differentiates, improves flexibility and customer satisfaction
- Drives new and recurring revenues
• Use licensing & entitlement management to enable your IoT
monetization strategy and protect your IP
If you manufacture
connected intelligent devices,
the Internet of Things offers opportunities.
To monetize the Internet of Things...

23. Flexera Software's Software Monetization solution, powered by purpose-
built licensing and entitlement management technology, supports IoT
success by making it easy to monetize embedded software through flexible
pricing, packaging and licensing. It also protects IP and reins in
unauthorized software use to prevent revenue loss.
Use Licensing and Entitlement Management
to Capitalize on the Internet of Things Opportunity
www.flexerasoftware.com
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