The document discusses how cloud licensing is revolutionizing traditional licensing models. It describes how cloud licensing allows for continuous, usage-based monetization through features like auto-activation and updates from a connected backend. This enables new licensing approaches like post-paid usage billing and harnessing usage data for customer intelligence. The document also discusses hybrid licensing approaches and how Sentinel Cloud Services provides a solution for feature-based provisioning, usage control, and analytics to support flexible cloud licensing.

1. Cloud Licensing
A Revolution in Traditional Licensing
Todd Your
InsertSteel Name
Sr. Product Manager
Insert Your Title
March 20, 2012
Insert Date
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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
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3. Forecast: Getting Cloudy
2009 2010 2011 2012 2013
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4. Changing Sales Cycle
Source: Forrester Research Source: Forrester Research
LINEAR CONTINUOUS
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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
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6. R-Evolution In Licensing
 Cloud Licensing
• “Live” Licensing
• Auto-Activation
• Updates
• Usage
• Post Paid
• Customer Intimacy: Customer Intelligence
• Hybrid Support
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7. R-Evolution In Licensing
 What is a cloud license?
• Connected to Back Office
• “Locked” to a User/Company – not a
machine
• Provides Usage
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8. R-Evolution In Licensing
 What is a cloud license?
“It’s ALIVE!”
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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
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10. Usage
Not Just For $$$ …Also Customer
Intelligence

11. Usage: for $$$ - Post Paid In Action
1. CAD/CAM
 Design Catalog Monetization
 Offer the entire catalog, pay for what you use
 Break Into Lower Tier Markets
 Without eroding price point of high-tier customers
2. Monetizing a PaaS (platform as a service)
 Bandwidth
 Charge for data through-put
 Storage
 Charge for data Stored
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12. Usage: for $$$ - 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
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13. Usage: for $$$ - Post Paid In Action
Usage: uniform
policy for monetizing
your offering across
delivery methods
• Mobile
• Virtual
• Installed
• Cloud
Services
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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
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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
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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
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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