The document discusses how new business models are changing pricing and licensing in the software industry. It introduces the concept of "Just-In-Time Licensing" which aims to simplify and standardize pricing and licensing to better synchronize supply with customer demand. This involves centralizing pricing and licensing functions and taking a less complex, more optimized approach. The goal is to address challenges around managing software entitlements across the lifecycle in a way that maximizes value for both customers and vendors.

1. Just-In-Time Licensing
How new business models are changing Pricing & Licensing
Timothy Willey
Forward-looking Statements: Any forward-looking indication of plans for products or programs is preliminary and
Senior Director all future release or delivery dates are tentative and are subject to change. Any future program plans, or release of
a product or planned modifications to product capability, functionality, or feature are subject to ongoing evaluation
by Symantec, and may or may not be implemented and should not be considered firm commitments by Symantec
Office of Pricing and Licensing and should not be relied upon in making program participation or product purchasing decisions.
SoftSummit, October 26th, 2011 1

2. What Is An Entitlement?
What Which
Who? has Rights? to Product/Service?
• Customer • Agreement Type • Product • Service
– Account – Use – Type – Upgrade Insurance
– Contact – Re-license – Feature – Technical Support
• Partner – Replicate – Version – Content
– OEM – Re-sell – Model • Professional Service
– Reseller – Rent – Meter • Software-as-a-Service
– Distributor – Support
• Terms & Conditions
for
How Long? How Many? How Much?
• Perpetual • Quantity • Price
• Term/Date • Contract
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3. Managing Software Entitlements today is as simple as
balancing Demand with Supply…
Demand Supply
What do I need? What do I own?
Huh? 
Challenges
and risks
Customers and
Partners
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4. These traditional software issues can cause customer
headaches across the Entitlement Lifecycle
How can I check what I
Customer already own?
Entitlement How do I get my
software?
Lifecycle Purchase
Renew Download
What if I’ve
over-deployed? What about
keys?
Upgrade Activate
What are my
upgrade and Can I track my
Get Help Manage deployments?
cross-grade
rights?
Where do I go
with an issue?
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5. Are the heart of these issues is the concept of the
Software Business Model…
The Software Business Model
$$$ = Revenue
Value Proposition
- Costs
Delivery Model
1 Segment Needs 4 Sales Channel
2 Competitive Offering 5 Service Delivery
3 Pricing & Licensing 6 Support Model
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6. This Business model is changing rapidly, adding to the
list of challenges for Pricing & Licensing
On-Premise Virtual & Mobile Private Public
Model environments Cloud Cloud
Business Impact for
Model Pricing &
Evolution Licensing
Traditional Emerging
Margin
Revenue Drivers
Segment Needs On-premise software Multi-device services
focus
Offering License + Maintenance Hosted Solutions
More
Pricing & Licensing Perpetual + Renewals Subscription + Usage Complexity
Channel Model Direct + 2-tier Direct + Multi-tier + MSP More SKUs
Cost Drivers
Delivery Model On-premise In the Cloud
Support Model Reactive In product and proactive Less time
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7. There are 3 stages to addressing these challenges
Synchronize
Demand Optimization
Just in Time
Standardize
Licensing
2-handed
clapping
Simplify
Centralize
Pricing & Licensing
Simplify Standardize Synchronize
Supply Optimization
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8. The starting point is to realize that in most
instances “less is more”
HIGH Overly simplified
approach leaves Optimal
money on the table Position Overly complex approach
(MC<MR) (MC=MR) drives down customer
retention and increases
Value to operating costs
(MC>MR)
Software
Vendor
Most
software
vendors
today
LOW
LOW Complexity of Product SKUs HIGH
and Pricing
MC = Marginal Cost MR = Marginal Revenue
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9. To address complexity, pricing and licensing
needs to be centralized within the organization
SKU and Price creation process Leads-to-Renewals
• Define strategy, policy and standards Life Cycle
• Simplify and reduce SKU volumes
New product • Manage exceptions via Executive Committee
releases
Channel
Price list Book
Fast-lane order
New business process $
models
$ Sales Provide in-life
$ tools and
Fulfill
$ support Deliver
M&A Exceptions Bill
$ Upgrade
process Renew
Cross- Install
grade Use
Support
New Services
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10. This centralized team can also drive a better
understanding of Business model mix
1. How to drive growth in traditional?
Business Model Mix
• Optimize renewals
High
• Targeted cross-sell and up-sell
Traditional 3
1
On-Premise • Tailor pricing towards new business
software Optimal
2. How to improve margins in new models?
models Business Mix
• Drive scale through standardization
Margin
2
• Differentiate discounting and incentives
New Business
• Manage cost and channel structures
Models
(e.g. SaaS, 3. How to optimize the business mix?
Appliances)
• Manage cannibalization risk
Low
• Align pricing and licensing
Low Growth High
• Create new go-to-market options
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11. Data policy and standards then need to be
enforced to allow easier reconciliation…
Understand Ongoing Understand
Entitlements Reconciliation Deployments
• Create centralized • Implement certified
Entitlement repository Software ID (SWID) Tags
• Utilize master data • Enable SAM tools and
standards and governance partners
• Provide self-service access • Create in-product
for customers and partners reporting features
• Provide up-to-date • Enable usage based meters
entitlement position (e.g. capacity)
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12. …developing a modular SKU structure, and
implementing SWID tags can help
Simplified SKU DNA + Certified SWID tags
• Standard discovery
Product • Product name
• Centralized reporting
• Version
Offerings • Operating System • Normalized data
• Tagvault.org Certified
PRODUCTS are sold
via USAGE RIGHTS
• License meter
Usage Rights • License model
• Maintenance type
PRICING is attached
to USAGE RIGHTS
• Buying Program
Pricing Attributes • Volume Discount
• Price-list
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13. The final stage is to develop on-demand
licensing, using Just-In-Time principles
Just in time (JIT) is a production strategy "Lean," is a production practice that
that strives to improve a business return on considers the expenditure of resources for
investment by reducing in-process inventory any goal other than the creation of value
and associated carrying costs…the for the end customer to be wasteful, and
philosophy of JIT is simple: thus a target for elimination
inventory is waste
Entitlement Supply Chain – Future State
Maximizing
Deploy Activate Register in Buy based Auto-
Software
Trial-ware Features Product on Usage renewal
ROI
Dealing with Manual patch Manual
Licensing License Keys and upgrades reporting
process
“waste” Manual Email Under / Over
registration notifications deployment
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14. A structured approach to Pricing & Licensing is needed
to get in-front of the wave of new business models
SaaS
PaaS
Appliances
IaaS Just-In-Time
The Cloud 2-Handed Licensing
Clapping
Virtualization
Centralize Pricing
MSPs & Licensing
Freemium models • Increase visibility • Create modular • Eliminate process
and governance SKU structure waste
Subscription
• Develop policy • Implement certified • Remove manual
and standards SWID tags activities
Mobile devices
• Control SKU • Enable true-up • Use the Product
Usage metering complexity reporting as a Channel
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15. Thank you!
Timothy_willey@symantec.com
Forward-looking Statements: Any forward-looking indication of plans for products or programs is preliminary and
all future release or delivery dates are tentative and are subject to change. Any future program plans, or release of
a product or planned modifications to product capability, functionality, or feature are subject to ongoing evaluation
SYMANTEC PROPRIETARY by Symantec, and may or may not be implemented and should not be considered firm commitments by Symantec
Copyright © 2011 Symantec Corporation. All rights reserved. and should not be relied upon in making program participation or product purchasing decisions.
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