SlideShare a Scribd company logo
Relationships built to last Ruediger Kuegler
VP Sales & Security Expert, WIBU-SYSTEMS AG
Joerg Jans
Professional Services, WIBU-SYSTEMS AG
Subscriptions
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 1
Where to find the accompanying audio
To access the on-demand reply of this masterclass, please visit
www.wibu.com/resources/webinars/2022/subscriptions-relationships-built-to-
last/access
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 2
Basic Foundations of
Subscription Models
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 3
License Subscription
 The User leases the software
 The right to use the software ends when the subscription expires
 In technical terms
 Time-limited license with Expiration Time
 Examples:
 Anti-virus software
 Office applications like Office 365
 Game portals like Sony Entertainment Network
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 4
Maintenance Subscription
 The User purchases the software & signs up for a maintenance contract
 The right to use the software does not expire
 The right to receive updates expires at the end of the maintenance period
 In technical terms:
 Perpetual license with a Maintenance Period
 Examples:
 Microsoft Software Assurance
 Perpetual Fallback License (JetBrains)
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 5
Pricing of Subscription Models
 Purchasing software only
 Full price 100%
 Price of the update 50% - 100%, depending on the last purchase
 Maintenance Subscription
 Annual maintenance fee 12% - 25% of license fee
 License Subscription
 Monthly fee 2% - 5% of license fee
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 6
Sample Calculation 1
 New customers per year
 100
 Price of the software application (license fee)
 $5,000.00
 Selling a software update
 50% of the customers purchase the update
 Update priced at 50% of the software’s
 Purchase after 2-3 years
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 7
Sample Calculation 2
 Maintenance Subscription
 75% of customers sign up for a maintenance contract
 Maintenance fee is priced at 20% of license’s
 Churn rate: 10% per year
 License Subscription
 Price: 4% of license fee
 25% more customers thanks to lower upfront costs
 Churn rate: 5% per year
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 8
Sample Calculation 3
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 9
0,50
0,58
0,16
0,51
0,64
0,45
0,56
0,70
0,74
0,61
0,76
1,00
0,63
0,81
1,26
$0,00 Mio
$0,25 Mio
$0,50 Mio
$0,75 Mio
$1,00 Mio
$1,25 Mio
$1,50 Mio
Perpedual
Maintenance
Subscription
Perpedual
Maintenance
Subscription
Perpedual
Maintenance
Subscription
Perpedual
Maintenance
Subscription
Perpedual
Maintenance
Subscription
Year 1 Year 2 Year 3 Year 4 Year 5
New Licenses License Updates Maintenance Fees Subscription Fees
Conclusions of the Sample Calculation
 Selling maintenance contracts via subscriptions is risk-free
 A license subscription model generates more revenues in the long term, but
represents a risk in the early years
 Introducing a new license model attracts more customers
 For a successful outcome, the selection of the right subscription price is essential: its
relation to the full software price and certain psychological barriers at $50 / $100 /
$200 / $500 come into play
 It is recommended to proceed in stages, i.e. for individual products or markets
 Specific considerations for each software and market!
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 10
CodeMeter License Options
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 11
Activation Time
CodeMeter Product Item Options
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 12
(Extended) Protected Data
Expiration Time
Feature Map
Hidden Data
License Quantity
Maintenance Period
Secret Data
Text
Unit Counter
Usage Period
Named User License
Linger Time
Customer Own License Information
Module Items License Transfer
User Data
Universal Data
Access Password
Minimum Runtime Version
Maximum Encryption Rate
Activation Time
Usage Period
Renewal Triggered
by the ERP
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 13
WIBU User
Vendor
Subscription – Triggered by the ERP 1
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 14
3. Activation
1. Create License
Protected
Software
2. Ticket
License
Central
e-Commerce /
ERP / CRM
5. Auto Update
4. Triggers Replace
… Triggers Replace …
Subscription – Triggered by the ERP 2
 The ERP, CRM or e-Commerce requests a time-limited license
 CodeMeter License Central creates a time-limited license
 The User activates the license using the ticket (Software Activation Wizard
or License Portal)
 The ERP, CRM or e-Commerce triggers the renewal of the license
(replace)
 Software (Activation Wizard) collects the renewed license (auto-update)
 The subscription stops when the ERP, CRM or e-Commerce stops
renewing the license
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 15
Subscriptions – Triggered by the ERP 3
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 16
End date from ERP
(on order)
Automatic License
Renewals
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 17
WIBU User
Vendor
Subscription – Automatic Renewal 1
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 18
3. Activation
1. Create Subscription
Protected
Software
2. Ticket
License
Central
e-Commerce /
ERP / CRM
4. Renewal
… Renewal …
Cancel Subscription
Subscription – Automatic Renewal 2
 The ERP, CRM or e-Commerce triggers the creation of a subscription
 CodeMeter License Central creates the license, which renews itself
automatically
 The User activates the license using the ticket (Software Activation Wizard
or License Portal)
 Software (Activation Wizard) renews the license periodically and
automatically
 The ERP, CRM or E-Commerce triggers the cancellation of the subscription
 Automatic renewal stops
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 19
Subscriptions – Automatic Renewal 3
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 20
Automatic renewal
(on activation)
Storage of ticket for
automatic renewal
Duration Threshold
Multi-channel Time
Contingents
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 21
Reseller
WIBU User
Vendor
Subscription – Multi-Channel Time Contingents 1
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 22
3. Activation (merge time contingents)
1. Create Time Contingent
Protected
Software
2. Ticket
License
Central
e-Commerce /
ERP / CRM
3. Activation (merge time contingents)
1. Create Time Contingent
2a. Ticket 2b. Ticket
Subscription – Multi-Channel Time Contingents 2
 The ERP, CRM or e-Commerce creates multiple tickets with time
contingents
 CodeMeter License Central creates the licenses
 Optionally: Tickets are distributed via multiple channels
 The User activates the license using the specific ticket (Software Activation
Wizard or License Portal)
 Dynamic calculation of Expiration Time during activation
 If the User already has a license (with same identifier), time contingents are merged
 If the User doesn’t have a license yet (with this identifier), a new license is created
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 23
Subscriptions – Multi-Channel Time Contingents 3
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 24
Subscription ID
(on activation)
Duration
Summary
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 25
Summary
 Subscription models are realized using an Expiration Time in CodeMeter
 CodeMeter License Central can handle different workflows
 Triggered by ERP, CRM or e-Commerce
 Automatic renewal
 Multi-channel time contingents
 CodeMeter License Central Extensions (WebDepot, Gateways, License
Portal) handle renewals and time contingents
 Custom adaptions are possible
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 26
https://www.wibu.com
info@wibu.com
Europe: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
Japan: +81-45-5659710
Many thanks for your kind attention
2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 27

More Related Content

Similar to Subscriptions - Relationships built to last

Feeling Right at Home: Uniform Processes for Online and Offline Licenses
Feeling Right at Home: Uniform Processes for Online and Offline LicensesFeeling Right at Home: Uniform Processes for Online and Offline Licenses
Feeling Right at Home: Uniform Processes for Online and Offline Licenses
team-WIBU
 
The Power of Partnership: Enabling Success Together
The Power of Partnership: Enabling Success TogetherThe Power of Partnership: Enabling Success Together
The Power of Partnership: Enabling Success Together
team-WIBU
 
Safer to market: Licensing and e-commerce integrated
Safer to market: Licensing and e-commerce integratedSafer to market: Licensing and e-commerce integrated
Safer to market: Licensing and e-commerce integrated
team-WIBU
 
Monetizing Software, Machines, and Materials with New Business Models
Monetizing Software, Machines, and Materials with New Business ModelsMonetizing Software, Machines, and Materials with New Business Models
Monetizing Software, Machines, and Materials with New Business Models
team-WIBU
 
For a Few Licenses More
For a Few Licenses MoreFor a Few Licenses More
For a Few Licenses More
team-WIBU
 
VBOT
VBOTVBOT
Optimizing Cloud Licensing: Strategies and Best Practices
Optimizing Cloud Licensing: Strategies and Best PracticesOptimizing Cloud Licensing: Strategies and Best Practices
Optimizing Cloud Licensing: Strategies and Best Practices
team-WIBU
 
Serving Up Features-on-Demand for Every Appetite
Serving Up Features-on-Demand for Every AppetiteServing Up Features-on-Demand for Every Appetite
Serving Up Features-on-Demand for Every Appetite
team-WIBU
 
Protection and monetization of 3D printed objects in the spare parts business...
Protection and monetization of 3D printed objects in the spare parts business...Protection and monetization of 3D printed objects in the spare parts business...
Protection and monetization of 3D printed objects in the spare parts business...
team-WIBU
 
Wibu systems-code metersoftwareprotection
Wibu systems-code metersoftwareprotectionWibu systems-code metersoftwareprotection
Wibu systems-code metersoftwareprotection
Himanshu Arora
 
The Dongle is Dead. Long Live the Dongle.
The Dongle is Dead. Long Live the Dongle.The Dongle is Dead. Long Live the Dongle.
The Dongle is Dead. Long Live the Dongle.
team-WIBU
 
A Software Engineering Project on Cyber cafe management
A Software Engineering Project on Cyber cafe managementA Software Engineering Project on Cyber cafe management
A Software Engineering Project on Cyber cafe management
svrohith 9
 
Best Practices for License Management
Best Practices for License ManagementBest Practices for License Management
Best Practices for License Management
team-WIBU
 
E trading platform for insurance
E trading platform for insurance E trading platform for insurance
E trading platform for insurance
supriyo12
 
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
Tracey Saunders
 
Managing entitlements through the product lifecycle
Managing entitlements through the product lifecycleManaging entitlements through the product lifecycle
Managing entitlements through the product lifecycle
team-WIBU
 
IBM Software Licensing: Tips to Safeguard Your Bottom Line
 IBM Software Licensing: Tips to Safeguard Your Bottom Line IBM Software Licensing: Tips to Safeguard Your Bottom Line
IBM Software Licensing: Tips to Safeguard Your Bottom Line
Senturus
 
The first step is always the most decisive
The first step is always the most decisiveThe first step is always the most decisive
The first step is always the most decisive
team-WIBU
 
IRJET - BI: Blockchain in Insurance
IRJET -  	  BI: Blockchain in InsuranceIRJET -  	  BI: Blockchain in Insurance
IRJET - BI: Blockchain in Insurance
IRJET Journal
 
Unleash the Power of CodeMeter - CodeMeter Basics
Unleash the Power of CodeMeter - CodeMeter BasicsUnleash the Power of CodeMeter - CodeMeter Basics
Unleash the Power of CodeMeter - CodeMeter Basics
team-WIBU
 

Similar to Subscriptions - Relationships built to last (20)

Feeling Right at Home: Uniform Processes for Online and Offline Licenses
Feeling Right at Home: Uniform Processes for Online and Offline LicensesFeeling Right at Home: Uniform Processes for Online and Offline Licenses
Feeling Right at Home: Uniform Processes for Online and Offline Licenses
 
The Power of Partnership: Enabling Success Together
The Power of Partnership: Enabling Success TogetherThe Power of Partnership: Enabling Success Together
The Power of Partnership: Enabling Success Together
 
Safer to market: Licensing and e-commerce integrated
Safer to market: Licensing and e-commerce integratedSafer to market: Licensing and e-commerce integrated
Safer to market: Licensing and e-commerce integrated
 
Monetizing Software, Machines, and Materials with New Business Models
Monetizing Software, Machines, and Materials with New Business ModelsMonetizing Software, Machines, and Materials with New Business Models
Monetizing Software, Machines, and Materials with New Business Models
 
For a Few Licenses More
For a Few Licenses MoreFor a Few Licenses More
For a Few Licenses More
 
VBOT
VBOTVBOT
VBOT
 
Optimizing Cloud Licensing: Strategies and Best Practices
Optimizing Cloud Licensing: Strategies and Best PracticesOptimizing Cloud Licensing: Strategies and Best Practices
Optimizing Cloud Licensing: Strategies and Best Practices
 
Serving Up Features-on-Demand for Every Appetite
Serving Up Features-on-Demand for Every AppetiteServing Up Features-on-Demand for Every Appetite
Serving Up Features-on-Demand for Every Appetite
 
Protection and monetization of 3D printed objects in the spare parts business...
Protection and monetization of 3D printed objects in the spare parts business...Protection and monetization of 3D printed objects in the spare parts business...
Protection and monetization of 3D printed objects in the spare parts business...
 
Wibu systems-code metersoftwareprotection
Wibu systems-code metersoftwareprotectionWibu systems-code metersoftwareprotection
Wibu systems-code metersoftwareprotection
 
The Dongle is Dead. Long Live the Dongle.
The Dongle is Dead. Long Live the Dongle.The Dongle is Dead. Long Live the Dongle.
The Dongle is Dead. Long Live the Dongle.
 
A Software Engineering Project on Cyber cafe management
A Software Engineering Project on Cyber cafe managementA Software Engineering Project on Cyber cafe management
A Software Engineering Project on Cyber cafe management
 
Best Practices for License Management
Best Practices for License ManagementBest Practices for License Management
Best Practices for License Management
 
E trading platform for insurance
E trading platform for insurance E trading platform for insurance
E trading platform for insurance
 
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
My Business in the Cloud Presentation Ian Saunders Asite 09/09/2014
 
Managing entitlements through the product lifecycle
Managing entitlements through the product lifecycleManaging entitlements through the product lifecycle
Managing entitlements through the product lifecycle
 
IBM Software Licensing: Tips to Safeguard Your Bottom Line
 IBM Software Licensing: Tips to Safeguard Your Bottom Line IBM Software Licensing: Tips to Safeguard Your Bottom Line
IBM Software Licensing: Tips to Safeguard Your Bottom Line
 
The first step is always the most decisive
The first step is always the most decisiveThe first step is always the most decisive
The first step is always the most decisive
 
IRJET - BI: Blockchain in Insurance
IRJET -  	  BI: Blockchain in InsuranceIRJET -  	  BI: Blockchain in Insurance
IRJET - BI: Blockchain in Insurance
 
Unleash the Power of CodeMeter - CodeMeter Basics
Unleash the Power of CodeMeter - CodeMeter BasicsUnleash the Power of CodeMeter - CodeMeter Basics
Unleash the Power of CodeMeter - CodeMeter Basics
 

More from team-WIBU

Post Quantum Cryptography – The Impact on Identity
Post Quantum Cryptography – The Impact on IdentityPost Quantum Cryptography – The Impact on Identity
Post Quantum Cryptography – The Impact on Identity
team-WIBU
 
Unlocking the Future: Empowering Industrial Security
Unlocking the Future: Empowering Industrial SecurityUnlocking the Future: Empowering Industrial Security
Unlocking the Future: Empowering Industrial Security
team-WIBU
 
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für GeschäftskontinuitätKeine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
team-WIBU
 
No Time to Idle – License availability for business continuity
No Time to Idle – License availability for business continuityNo Time to Idle – License availability for business continuity
No Time to Idle – License availability for business continuity
team-WIBU
 
Cloud-Based Licensing in Offline Scenarios
Cloud-Based Licensing in Offline ScenariosCloud-Based Licensing in Offline Scenarios
Cloud-Based Licensing in Offline Scenarios
team-WIBU
 
App Management on the Edge
App Management on the EdgeApp Management on the Edge
App Management on the Edge
team-WIBU
 
Protecting and Licensing .NET Applications
Protecting and Licensing .NET ApplicationsProtecting and Licensing .NET Applications
Protecting and Licensing .NET Applications
team-WIBU
 
Authenticate and authorize your IIoTdevices
Authenticate and authorize your IIoTdevicesAuthenticate and authorize your IIoTdevices
Authenticate and authorize your IIoTdevices
team-WIBU
 
Security and Protection for Machine Learning.pptx
Security and Protection for Machine Learning.pptxSecurity and Protection for Machine Learning.pptx
Security and Protection for Machine Learning.pptx
team-WIBU
 
Running code in secure hardware or cloud environments
Running code in secure hardware or cloud environmentsRunning code in secure hardware or cloud environments
Running code in secure hardware or cloud environments
team-WIBU
 
Protecting Node.js-based JavaScript Applications
Protecting Node.js-based JavaScript ApplicationsProtecting Node.js-based JavaScript Applications
Protecting Node.js-based JavaScript Applications
team-WIBU
 
Your CODESYS Applications, Protected and Licensed
Your CODESYS Applications, Protected and LicensedYour CODESYS Applications, Protected and Licensed
Your CODESYS Applications, Protected and Licensed
team-WIBU
 
Everything You Always Wanted to Know About CodeMeter FSBs
Everything You Always Wanted to Know About CodeMeter FSBsEverything You Always Wanted to Know About CodeMeter FSBs
Everything You Always Wanted to Know About CodeMeter FSBs
team-WIBU
 
Protecting Python applications the simpler way
Protecting Python applications the simpler wayProtecting Python applications the simpler way
Protecting Python applications the simpler way
team-WIBU
 
Embedded devices - Big opportunities in tiny packages
Embedded devices - Big opportunities in tiny packagesEmbedded devices - Big opportunities in tiny packages
Embedded devices - Big opportunities in tiny packages
team-WIBU
 
Licensing in virtual environments
Licensing in virtual environmentsLicensing in virtual environments
Licensing in virtual environments
team-WIBU
 

More from team-WIBU (16)

Post Quantum Cryptography – The Impact on Identity
Post Quantum Cryptography – The Impact on IdentityPost Quantum Cryptography – The Impact on Identity
Post Quantum Cryptography – The Impact on Identity
 
Unlocking the Future: Empowering Industrial Security
Unlocking the Future: Empowering Industrial SecurityUnlocking the Future: Empowering Industrial Security
Unlocking the Future: Empowering Industrial Security
 
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für GeschäftskontinuitätKeine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
Keine Zeit für Leerlauf – Lizenzverfügbarkeit für Geschäftskontinuität
 
No Time to Idle – License availability for business continuity
No Time to Idle – License availability for business continuityNo Time to Idle – License availability for business continuity
No Time to Idle – License availability for business continuity
 
Cloud-Based Licensing in Offline Scenarios
Cloud-Based Licensing in Offline ScenariosCloud-Based Licensing in Offline Scenarios
Cloud-Based Licensing in Offline Scenarios
 
App Management on the Edge
App Management on the EdgeApp Management on the Edge
App Management on the Edge
 
Protecting and Licensing .NET Applications
Protecting and Licensing .NET ApplicationsProtecting and Licensing .NET Applications
Protecting and Licensing .NET Applications
 
Authenticate and authorize your IIoTdevices
Authenticate and authorize your IIoTdevicesAuthenticate and authorize your IIoTdevices
Authenticate and authorize your IIoTdevices
 
Security and Protection for Machine Learning.pptx
Security and Protection for Machine Learning.pptxSecurity and Protection for Machine Learning.pptx
Security and Protection for Machine Learning.pptx
 
Running code in secure hardware or cloud environments
Running code in secure hardware or cloud environmentsRunning code in secure hardware or cloud environments
Running code in secure hardware or cloud environments
 
Protecting Node.js-based JavaScript Applications
Protecting Node.js-based JavaScript ApplicationsProtecting Node.js-based JavaScript Applications
Protecting Node.js-based JavaScript Applications
 
Your CODESYS Applications, Protected and Licensed
Your CODESYS Applications, Protected and LicensedYour CODESYS Applications, Protected and Licensed
Your CODESYS Applications, Protected and Licensed
 
Everything You Always Wanted to Know About CodeMeter FSBs
Everything You Always Wanted to Know About CodeMeter FSBsEverything You Always Wanted to Know About CodeMeter FSBs
Everything You Always Wanted to Know About CodeMeter FSBs
 
Protecting Python applications the simpler way
Protecting Python applications the simpler wayProtecting Python applications the simpler way
Protecting Python applications the simpler way
 
Embedded devices - Big opportunities in tiny packages
Embedded devices - Big opportunities in tiny packagesEmbedded devices - Big opportunities in tiny packages
Embedded devices - Big opportunities in tiny packages
 
Licensing in virtual environments
Licensing in virtual environmentsLicensing in virtual environments
Licensing in virtual environments
 

Recently uploaded

Providing Globus Services to Users of JASMIN for Environmental Data Analysis
Providing Globus Services to Users of JASMIN for Environmental Data AnalysisProviding Globus Services to Users of JASMIN for Environmental Data Analysis
Providing Globus Services to Users of JASMIN for Environmental Data Analysis
Globus
 
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, BetterWebinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
XfilesPro
 
Prosigns: Transforming Business with Tailored Technology Solutions
Prosigns: Transforming Business with Tailored Technology SolutionsProsigns: Transforming Business with Tailored Technology Solutions
Prosigns: Transforming Business with Tailored Technology Solutions
Prosigns
 
Enhancing Research Orchestration Capabilities at ORNL.pdf
Enhancing Research Orchestration Capabilities at ORNL.pdfEnhancing Research Orchestration Capabilities at ORNL.pdf
Enhancing Research Orchestration Capabilities at ORNL.pdf
Globus
 
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.ILBeyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
Natan Silnitsky
 
Cracking the code review at SpringIO 2024
Cracking the code review at SpringIO 2024Cracking the code review at SpringIO 2024
Cracking the code review at SpringIO 2024
Paco van Beckhoven
 
Quarkus Hidden and Forbidden Extensions
Quarkus Hidden and Forbidden ExtensionsQuarkus Hidden and Forbidden Extensions
Quarkus Hidden and Forbidden Extensions
Max Andersen
 
May Marketo Masterclass, London MUG May 22 2024.pdf
May Marketo Masterclass, London MUG May 22 2024.pdfMay Marketo Masterclass, London MUG May 22 2024.pdf
May Marketo Masterclass, London MUG May 22 2024.pdf
Adele Miller
 
How Recreation Management Software Can Streamline Your Operations.pptx
How Recreation Management Software Can Streamline Your Operations.pptxHow Recreation Management Software Can Streamline Your Operations.pptx
How Recreation Management Software Can Streamline Your Operations.pptx
wottaspaceseo
 
First Steps with Globus Compute Multi-User Endpoints
First Steps with Globus Compute Multi-User EndpointsFirst Steps with Globus Compute Multi-User Endpoints
First Steps with Globus Compute Multi-User Endpoints
Globus
 
How to Position Your Globus Data Portal for Success Ten Good Practices
How to Position Your Globus Data Portal for Success Ten Good PracticesHow to Position Your Globus Data Portal for Success Ten Good Practices
How to Position Your Globus Data Portal for Success Ten Good Practices
Globus
 
Corporate Management | Session 3 of 3 | Tendenci AMS
Corporate Management | Session 3 of 3 | Tendenci AMSCorporate Management | Session 3 of 3 | Tendenci AMS
Corporate Management | Session 3 of 3 | Tendenci AMS
Tendenci - The Open Source AMS (Association Management Software)
 
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
Globus
 
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
Anthony Dahanne
 
Developing Distributed High-performance Computing Capabilities of an Open Sci...
Developing Distributed High-performance Computing Capabilities of an Open Sci...Developing Distributed High-performance Computing Capabilities of an Open Sci...
Developing Distributed High-performance Computing Capabilities of an Open Sci...
Globus
 
Navigating the Metaverse: A Journey into Virtual Evolution"
Navigating the Metaverse: A Journey into Virtual Evolution"Navigating the Metaverse: A Journey into Virtual Evolution"
Navigating the Metaverse: A Journey into Virtual Evolution"
Donna Lenk
 
top nidhi software solution freedownload
top nidhi software solution freedownloadtop nidhi software solution freedownload
top nidhi software solution freedownload
vrstrong314
 
Accelerate Enterprise Software Engineering with Platformless
Accelerate Enterprise Software Engineering with PlatformlessAccelerate Enterprise Software Engineering with Platformless
Accelerate Enterprise Software Engineering with Platformless
WSO2
 
Cyaniclab : Software Development Agency Portfolio.pdf
Cyaniclab : Software Development Agency Portfolio.pdfCyaniclab : Software Development Agency Portfolio.pdf
Cyaniclab : Software Development Agency Portfolio.pdf
Cyanic lab
 
Graphic Design Crash Course for beginners
Graphic Design Crash Course for beginnersGraphic Design Crash Course for beginners
Graphic Design Crash Course for beginners
e20449
 

Recently uploaded (20)

Providing Globus Services to Users of JASMIN for Environmental Data Analysis
Providing Globus Services to Users of JASMIN for Environmental Data AnalysisProviding Globus Services to Users of JASMIN for Environmental Data Analysis
Providing Globus Services to Users of JASMIN for Environmental Data Analysis
 
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, BetterWebinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
Webinar: Salesforce Document Management 2.0 - Smarter, Faster, Better
 
Prosigns: Transforming Business with Tailored Technology Solutions
Prosigns: Transforming Business with Tailored Technology SolutionsProsigns: Transforming Business with Tailored Technology Solutions
Prosigns: Transforming Business with Tailored Technology Solutions
 
Enhancing Research Orchestration Capabilities at ORNL.pdf
Enhancing Research Orchestration Capabilities at ORNL.pdfEnhancing Research Orchestration Capabilities at ORNL.pdf
Enhancing Research Orchestration Capabilities at ORNL.pdf
 
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.ILBeyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
Beyond Event Sourcing - Embracing CRUD for Wix Platform - Java.IL
 
Cracking the code review at SpringIO 2024
Cracking the code review at SpringIO 2024Cracking the code review at SpringIO 2024
Cracking the code review at SpringIO 2024
 
Quarkus Hidden and Forbidden Extensions
Quarkus Hidden and Forbidden ExtensionsQuarkus Hidden and Forbidden Extensions
Quarkus Hidden and Forbidden Extensions
 
May Marketo Masterclass, London MUG May 22 2024.pdf
May Marketo Masterclass, London MUG May 22 2024.pdfMay Marketo Masterclass, London MUG May 22 2024.pdf
May Marketo Masterclass, London MUG May 22 2024.pdf
 
How Recreation Management Software Can Streamline Your Operations.pptx
How Recreation Management Software Can Streamline Your Operations.pptxHow Recreation Management Software Can Streamline Your Operations.pptx
How Recreation Management Software Can Streamline Your Operations.pptx
 
First Steps with Globus Compute Multi-User Endpoints
First Steps with Globus Compute Multi-User EndpointsFirst Steps with Globus Compute Multi-User Endpoints
First Steps with Globus Compute Multi-User Endpoints
 
How to Position Your Globus Data Portal for Success Ten Good Practices
How to Position Your Globus Data Portal for Success Ten Good PracticesHow to Position Your Globus Data Portal for Success Ten Good Practices
How to Position Your Globus Data Portal for Success Ten Good Practices
 
Corporate Management | Session 3 of 3 | Tendenci AMS
Corporate Management | Session 3 of 3 | Tendenci AMSCorporate Management | Session 3 of 3 | Tendenci AMS
Corporate Management | Session 3 of 3 | Tendenci AMS
 
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
Climate Science Flows: Enabling Petabyte-Scale Climate Analysis with the Eart...
 
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
Paketo Buildpacks : la meilleure façon de construire des images OCI? DevopsDa...
 
Developing Distributed High-performance Computing Capabilities of an Open Sci...
Developing Distributed High-performance Computing Capabilities of an Open Sci...Developing Distributed High-performance Computing Capabilities of an Open Sci...
Developing Distributed High-performance Computing Capabilities of an Open Sci...
 
Navigating the Metaverse: A Journey into Virtual Evolution"
Navigating the Metaverse: A Journey into Virtual Evolution"Navigating the Metaverse: A Journey into Virtual Evolution"
Navigating the Metaverse: A Journey into Virtual Evolution"
 
top nidhi software solution freedownload
top nidhi software solution freedownloadtop nidhi software solution freedownload
top nidhi software solution freedownload
 
Accelerate Enterprise Software Engineering with Platformless
Accelerate Enterprise Software Engineering with PlatformlessAccelerate Enterprise Software Engineering with Platformless
Accelerate Enterprise Software Engineering with Platformless
 
Cyaniclab : Software Development Agency Portfolio.pdf
Cyaniclab : Software Development Agency Portfolio.pdfCyaniclab : Software Development Agency Portfolio.pdf
Cyaniclab : Software Development Agency Portfolio.pdf
 
Graphic Design Crash Course for beginners
Graphic Design Crash Course for beginnersGraphic Design Crash Course for beginners
Graphic Design Crash Course for beginners
 

Subscriptions - Relationships built to last

  • 1. Relationships built to last Ruediger Kuegler VP Sales & Security Expert, WIBU-SYSTEMS AG Joerg Jans Professional Services, WIBU-SYSTEMS AG Subscriptions 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 1
  • 2. Where to find the accompanying audio To access the on-demand reply of this masterclass, please visit www.wibu.com/resources/webinars/2022/subscriptions-relationships-built-to- last/access 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 2
  • 3. Basic Foundations of Subscription Models 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 3
  • 4. License Subscription  The User leases the software  The right to use the software ends when the subscription expires  In technical terms  Time-limited license with Expiration Time  Examples:  Anti-virus software  Office applications like Office 365  Game portals like Sony Entertainment Network 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 4
  • 5. Maintenance Subscription  The User purchases the software & signs up for a maintenance contract  The right to use the software does not expire  The right to receive updates expires at the end of the maintenance period  In technical terms:  Perpetual license with a Maintenance Period  Examples:  Microsoft Software Assurance  Perpetual Fallback License (JetBrains) 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 5
  • 6. Pricing of Subscription Models  Purchasing software only  Full price 100%  Price of the update 50% - 100%, depending on the last purchase  Maintenance Subscription  Annual maintenance fee 12% - 25% of license fee  License Subscription  Monthly fee 2% - 5% of license fee 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 6
  • 7. Sample Calculation 1  New customers per year  100  Price of the software application (license fee)  $5,000.00  Selling a software update  50% of the customers purchase the update  Update priced at 50% of the software’s  Purchase after 2-3 years 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 7
  • 8. Sample Calculation 2  Maintenance Subscription  75% of customers sign up for a maintenance contract  Maintenance fee is priced at 20% of license’s  Churn rate: 10% per year  License Subscription  Price: 4% of license fee  25% more customers thanks to lower upfront costs  Churn rate: 5% per year 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 8
  • 9. Sample Calculation 3 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 9 0,50 0,58 0,16 0,51 0,64 0,45 0,56 0,70 0,74 0,61 0,76 1,00 0,63 0,81 1,26 $0,00 Mio $0,25 Mio $0,50 Mio $0,75 Mio $1,00 Mio $1,25 Mio $1,50 Mio Perpedual Maintenance Subscription Perpedual Maintenance Subscription Perpedual Maintenance Subscription Perpedual Maintenance Subscription Perpedual Maintenance Subscription Year 1 Year 2 Year 3 Year 4 Year 5 New Licenses License Updates Maintenance Fees Subscription Fees
  • 10. Conclusions of the Sample Calculation  Selling maintenance contracts via subscriptions is risk-free  A license subscription model generates more revenues in the long term, but represents a risk in the early years  Introducing a new license model attracts more customers  For a successful outcome, the selection of the right subscription price is essential: its relation to the full software price and certain psychological barriers at $50 / $100 / $200 / $500 come into play  It is recommended to proceed in stages, i.e. for individual products or markets  Specific considerations for each software and market! 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 10
  • 11. CodeMeter License Options 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 11
  • 12. Activation Time CodeMeter Product Item Options 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 12 (Extended) Protected Data Expiration Time Feature Map Hidden Data License Quantity Maintenance Period Secret Data Text Unit Counter Usage Period Named User License Linger Time Customer Own License Information Module Items License Transfer User Data Universal Data Access Password Minimum Runtime Version Maximum Encryption Rate Activation Time Usage Period
  • 13. Renewal Triggered by the ERP 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 13
  • 14. WIBU User Vendor Subscription – Triggered by the ERP 1 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 14 3. Activation 1. Create License Protected Software 2. Ticket License Central e-Commerce / ERP / CRM 5. Auto Update 4. Triggers Replace … Triggers Replace …
  • 15. Subscription – Triggered by the ERP 2  The ERP, CRM or e-Commerce requests a time-limited license  CodeMeter License Central creates a time-limited license  The User activates the license using the ticket (Software Activation Wizard or License Portal)  The ERP, CRM or e-Commerce triggers the renewal of the license (replace)  Software (Activation Wizard) collects the renewed license (auto-update)  The subscription stops when the ERP, CRM or e-Commerce stops renewing the license 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 15
  • 16. Subscriptions – Triggered by the ERP 3 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 16 End date from ERP (on order)
  • 17. Automatic License Renewals 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 17
  • 18. WIBU User Vendor Subscription – Automatic Renewal 1 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 18 3. Activation 1. Create Subscription Protected Software 2. Ticket License Central e-Commerce / ERP / CRM 4. Renewal … Renewal … Cancel Subscription
  • 19. Subscription – Automatic Renewal 2  The ERP, CRM or e-Commerce triggers the creation of a subscription  CodeMeter License Central creates the license, which renews itself automatically  The User activates the license using the ticket (Software Activation Wizard or License Portal)  Software (Activation Wizard) renews the license periodically and automatically  The ERP, CRM or E-Commerce triggers the cancellation of the subscription  Automatic renewal stops 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 19
  • 20. Subscriptions – Automatic Renewal 3 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 20 Automatic renewal (on activation) Storage of ticket for automatic renewal Duration Threshold
  • 21. Multi-channel Time Contingents 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 21
  • 22. Reseller WIBU User Vendor Subscription – Multi-Channel Time Contingents 1 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 22 3. Activation (merge time contingents) 1. Create Time Contingent Protected Software 2. Ticket License Central e-Commerce / ERP / CRM 3. Activation (merge time contingents) 1. Create Time Contingent 2a. Ticket 2b. Ticket
  • 23. Subscription – Multi-Channel Time Contingents 2  The ERP, CRM or e-Commerce creates multiple tickets with time contingents  CodeMeter License Central creates the licenses  Optionally: Tickets are distributed via multiple channels  The User activates the license using the specific ticket (Software Activation Wizard or License Portal)  Dynamic calculation of Expiration Time during activation  If the User already has a license (with same identifier), time contingents are merged  If the User doesn’t have a license yet (with this identifier), a new license is created 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 23
  • 24. Subscriptions – Multi-Channel Time Contingents 3 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 24 Subscription ID (on activation) Duration
  • 25. Summary 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 25
  • 26. Summary  Subscription models are realized using an Expiration Time in CodeMeter  CodeMeter License Central can handle different workflows  Triggered by ERP, CRM or e-Commerce  Automatic renewal  Multi-channel time contingents  CodeMeter License Central Extensions (WebDepot, Gateways, License Portal) handle renewals and time contingents  Custom adaptions are possible 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 26
  • 27. https://www.wibu.com info@wibu.com Europe: +49-721-931720 USA: +1-425-7756900 China: +86-21-55661790 Japan: +81-45-5659710 Many thanks for your kind attention 2022-02-16 © WIBU-SYSTEMS AG 2022 - Subscriptions: Relationships built to last 27