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Cloud Licensing
           A Revolution in Traditional Licensing




        Todd Your
        InsertSteel Name
        Sr. Product Manager
        Insert Your Title
        March 20, 2012
        Insert Date



© SafeNet Confidential and Proprietary
Agenda

      Changing Sales Cycle
      Affect on Monetization
      R-Evolution in Licensing
              • “Live” Licensing
                       • Auto-Activation
                       • Updates
              • Usage
                       • Post Paid
                       • Customer Intimacy: Customer Intelligence
              • Hybrid Support



© SafeNet Confidential and Proprietary                              2
Forecast: Getting Cloudy




                   2009                  2010   2011   2012   2013




© SafeNet Confidential and Proprietary                               3
Changing Sales Cycle




    Source: Forrester Research                 Source: Forrester Research




                       LINEAR            CONTINUOUS

© SafeNet Confidential and Proprietary                                      4
Affect on Monetization

                                         Linear          Continuous

                        Static: One-Time           Dynamic: Recurring


                        Pre-Determined             On-Demand


                        This Computer/Server…      This User/Company…

                                                   Report: What are others
                        Report: What am I doing?
                                                   doing?

                        Disconnected Backend       Connected Backend


                                    Traditional           Cloud




© SafeNet Confidential and Proprietary                                       5
R-Evolution In Licensing

      Cloud Licensing
              • “Live” Licensing
                       • Auto-Activation
                       • Updates
              • Usage
                       • Post Paid
                       • Customer Intimacy: Customer Intelligence
              • Hybrid Support




© SafeNet Confidential and Proprietary                              6
R-Evolution In Licensing

      What is a cloud license?
              • Connected to Back Office
              • “Locked” to a User/Company – not a
                machine
              • Provides Usage




© SafeNet Confidential and Proprietary               7
R-Evolution In Licensing

      What is a cloud license?




                                         “It’s ALIVE!”

© SafeNet Confidential and Proprietary                   8
R-Evolution In Licensing
      “Live” Licensing From Two Points of View:
              • Customer View
                       • Better Customer Experience
                       • Get Started More Quickly
                       • Flexibility – Make changes when they what/how they want

              • Software Publisher View
                       • Low Touch Sales & Upgrades
                                • Improved Business Efficiency
                                • Reduced Support Cost
                       • Connected Licensing Experience
                                • Real Time Control
                                • Compliance Validation
                                • Synchronization
                       • Usage Collection & Aggregation




© SafeNet Confidential and Proprietary                                             9
Usage

  Not Just For $$$   …Also Customer
                       Intelligence
Usage: for $$$ - Post Paid In Action

     1. CAD/CAM
                      Design Catalog Monetization
                              Offer the entire catalog, pay for what you use
                      Break Into Lower Tier Markets
                              Without eroding price point of high-tier customers

     2. Monetizing a PaaS (platform as a service)
                      Bandwidth
                              Charge for data through-put
                      Storage
                              Charge for data Stored




© SafeNet Confidential and Proprietary                                              11
Usage: for $$$ - Post Paid In Action

     3. Software Development Kit
                      My software is embedded in another application
                              Concurrency – How many instances of the application are
                               being used by a software developer at any given time


     4. Financials
                      Transaction Model
                              Number of Invoices Generated




© SafeNet Confidential and Proprietary                                                   12
Usage: for $$$ - Post Paid In Action


      Usage: uniform
      policy for monetizing
      your offering across
      delivery methods
        •     Mobile
        •     Virtual
        •     Installed
        •     Cloud


                                         Services


© SafeNet Confidential and Proprietary              13
Usage: Customer Intelligence




                                    Business
  Building a better offering                          Uncovering new ways to
                                   Intelligence
                                     delivers         do business…
                                    customer
                                  insight for…




Improving customer satisfaction                   Improved sales relations
Hybrid Delivered Applications




                                         OR




© SafeNet Confidential and Proprietary        15
Hybrid Delivered Applications

         Test the waters….
                 • Initially use license
                   models which fit
                   current offerings
                 • Introduce and test new
                   license models which
                   fit service offerings
                          •   Flexible subscriptions
                          •   Usage
                          •   Prepaid pools
                          •   Overages, rollovers,
                              peak usage



© SafeNet Confidential and Proprietary                 16
Hybrid Delivered Applications
              Attributes of Successful Hybrid Licensing
                                                                         2   Supports Cloud Elasticity
          4     Common Operational System
                 - Provisioning
                 - Business Metrics

              IS V


                                                                             OR        1   Common
                                                                                           Source Code
       Licensing Operations




                                         Control Behavior Offline 3
                                          - including usage collection



© SafeNet Confidential and Proprietary                                                                   17
Technology Considerations
A successful cloud licensing experience requires:

   Service Agreement Compliance
   Product Versatility
   Business Agility
   Sophisticated License Models
   Business Intelligence
   Back Office Support
The Solution: Sentinel Cloud Services
Sentinel™ Cloud Services is a feature-based user provisioning, authorization,
metering and management solution for Software delivered as a Service

                       Define


                                                   DEFINE service catalog and pricing models at the
                                                   feature-level to boost product versatility and
                                                   business agility
     Adapt                            Provision
                                                   PROVISION service agreements instantly to improve
                                                   operational efficiency and minimize manual errors

                                                   CONTROL user authorization to enable service
                                                   agreement compliance

                                                   MEASURE customer usage for business intelligence
                                                   and billing support to simplify operations and
                                                   improve strategic decision-making capabilities

                                                   ADAPT service offerings and pricing models on the fly
                                                   without the involvement of engineering to
                                                   Instantly embrace evolving market demands
             Measure            Control

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The Revolution in Licensing - Cloud-Based Licensing

  • 1. Cloud Licensing A Revolution in Traditional Licensing Todd Your InsertSteel Name Sr. Product Manager Insert Your Title March 20, 2012 Insert Date © SafeNet Confidential and Proprietary
  • 2. Agenda  Changing Sales Cycle  Affect on Monetization  R-Evolution in Licensing • “Live” Licensing • Auto-Activation • Updates • Usage • Post Paid • Customer Intimacy: Customer Intelligence • Hybrid Support © SafeNet Confidential and Proprietary 2
  • 3. Forecast: Getting Cloudy 2009 2010 2011 2012 2013 © SafeNet Confidential and Proprietary 3
  • 4. Changing Sales Cycle Source: Forrester Research Source: Forrester Research LINEAR CONTINUOUS © SafeNet Confidential and Proprietary 4
  • 5. Affect on Monetization Linear Continuous Static: One-Time Dynamic: Recurring Pre-Determined On-Demand This Computer/Server… This User/Company… Report: What are others Report: What am I doing? doing? Disconnected Backend Connected Backend Traditional Cloud © SafeNet Confidential and Proprietary 5
  • 6. R-Evolution In Licensing  Cloud Licensing • “Live” Licensing • Auto-Activation • Updates • Usage • Post Paid • Customer Intimacy: Customer Intelligence • Hybrid Support © SafeNet Confidential and Proprietary 6
  • 7. R-Evolution In Licensing  What is a cloud license? • Connected to Back Office • “Locked” to a User/Company – not a machine • Provides Usage © SafeNet Confidential and Proprietary 7
  • 8. R-Evolution In Licensing  What is a cloud license? “It’s ALIVE!” © SafeNet Confidential and Proprietary 8
  • 9. R-Evolution In Licensing  “Live” Licensing From Two Points of View: • Customer View • Better Customer Experience • Get Started More Quickly • Flexibility – Make changes when they what/how they want • Software Publisher View • Low Touch Sales & Upgrades • Improved Business Efficiency • Reduced Support Cost • Connected Licensing Experience • Real Time Control • Compliance Validation • Synchronization • Usage Collection & Aggregation © SafeNet Confidential and Proprietary 9
  • 10. Usage Not Just For $$$ …Also Customer Intelligence
  • 11. Usage: for $$$ - Post Paid In Action 1. CAD/CAM  Design Catalog Monetization  Offer the entire catalog, pay for what you use  Break Into Lower Tier Markets  Without eroding price point of high-tier customers 2. Monetizing a PaaS (platform as a service)  Bandwidth  Charge for data through-put  Storage  Charge for data Stored © SafeNet Confidential and Proprietary 11
  • 12. Usage: for $$$ - Post Paid In Action 3. Software Development Kit  My software is embedded in another application  Concurrency – How many instances of the application are being used by a software developer at any given time 4. Financials  Transaction Model  Number of Invoices Generated © SafeNet Confidential and Proprietary 12
  • 13. Usage: for $$$ - Post Paid In Action Usage: uniform policy for monetizing your offering across delivery methods • Mobile • Virtual • Installed • Cloud Services © SafeNet Confidential and Proprietary 13
  • 14. Usage: Customer Intelligence Business Building a better offering Uncovering new ways to Intelligence delivers do business… customer insight for… Improving customer satisfaction Improved sales relations
  • 15. Hybrid Delivered Applications OR © SafeNet Confidential and Proprietary 15
  • 16. Hybrid Delivered Applications  Test the waters…. • Initially use license models which fit current offerings • Introduce and test new license models which fit service offerings • Flexible subscriptions • Usage • Prepaid pools • Overages, rollovers, peak usage © SafeNet Confidential and Proprietary 16
  • 17. Hybrid Delivered Applications Attributes of Successful Hybrid Licensing 2 Supports Cloud Elasticity 4 Common Operational System - Provisioning - Business Metrics IS V OR 1 Common Source Code Licensing Operations Control Behavior Offline 3 - including usage collection © SafeNet Confidential and Proprietary 17
  • 18. Technology Considerations A successful cloud licensing experience requires:  Service Agreement Compliance  Product Versatility  Business Agility  Sophisticated License Models  Business Intelligence  Back Office Support
  • 19. The Solution: Sentinel Cloud Services Sentinel™ Cloud Services is a feature-based user provisioning, authorization, metering and management solution for Software delivered as a Service Define DEFINE service catalog and pricing models at the feature-level to boost product versatility and business agility Adapt Provision PROVISION service agreements instantly to improve operational efficiency and minimize manual errors CONTROL user authorization to enable service agreement compliance MEASURE customer usage for business intelligence and billing support to simplify operations and improve strategic decision-making capabilities ADAPT service offerings and pricing models on the fly without the involvement of engineering to Instantly embrace evolving market demands Measure Control