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Page 1WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
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1989....
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Thous...
Page 1Wibu-Systems 2012
CodeMeter
Product Overview
Rüdiger Kügler
VP Sales | Security Expert
rk@wibu.com
Page 2Wibu-Systems 2012
Who takes part?
Vendor
• Software protection
• Software licensing
• Process integration
User
• Use...
Page 3Wibu-Systems 2012
LICENSE ACTIVATION
View of the User
Page 4Wibu-Systems 2012
 User gets his ticket
with order confirmation
delivery notice
 User starts software
and activate...
Page 5Wibu-Systems 2012
1) User gets Order Confirmation
Page 6Wibu-Systems 2012
2) User starts Software
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2) User starts Software II
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2) User starts Software III
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2) User starts Software IV
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3) Software works
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Transparent license management
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OVERVIEW
View of the Vendor
Page 13Wibu-Systems 2012
CodeMeter for the Vendor
Technology
(CmDongle /
CmActLicenses)
Software Integration
Backoffice In...
Page 14Wibu-Systems 2012
CODEMETER TECHNOLOGY
View of the Vendor
Page 15Wibu-Systems 2012
Realizing license models
Single User License
Floating Network Licenses
Software Renting
Pay-Per-U...
Page 16Wibu-Systems 2012
Secure license storage
 CmActLicense
 State-Of-The-Art Binding to
hardware fingerprint of PC
 ...
Page 17Wibu-Systems 2012
SmartBind®: Generation of Binding
HD ID
Mac
2
CPU
type
CPU ID TPM ID
Mac
1
…
HD ID
CPU
type
CPU I...
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Original Property VectorHD ID
CPU
type
CPU ID …
Mac
1
SmartBind®: Check of Binding (== OK)
HD ID
...
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Original Property VectorHD ID
CPU
type
CPU ID
Mac
1
…
SmartBind®: Check of Binding (!= OK)
HD ID
...
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SOFTWARE INTEGRATION
View of the Vendor
Page 22Wibu-Systems 2012
Integration into the Software
 Automatic Protection
 AxProtector
 Windows 32-bit / 64-bit, Mac...
Page 23Wibu-Systems 2012
AxProtector = Wrapper
Why do I need
a wrapper?
Page 24Wibu-Systems 2012
Application with simple API calls
.Net (and Java) code can be
disassembled very easily
Page 25Wibu-Systems 2012
Hacker removes license check
Page 26Wibu-Systems 2012
Cracked application
License check
is removed
Page 27Wibu-Systems 2012
Application with obfuscation
Code still readable
Page 28Wibu-Systems 2012
AxProtector/IxProtector .Net
Compiled application Release version
Header
Code
Header
Stub Code
(w...
Page 29Wibu-Systems 2012
Encrypted Code with AxProtector
Code is no longer
readable
Page 30Wibu-Systems 2012
BACK OFFICE INTEGRATION
View of the Vendor
Page 31Wibu-Systems 2012
Ticket /
Fingerprint
4
User
Online Activation Server
Vendor
Ticket
3
License
5
Ticket
2
SKU
1
Onl...
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Backoffice Integration
Business
Logic
User Interface
License CentralERP
CRM
Webdepot
Gateway
Conn...
Page 33Wibu-Systems 2012
Activation via Internet (Online)
Vendor UserSOAP (XML), JSON,
HTTP Post
Ticket +
Fingerprint
Lice...
Page 34Wibu-Systems 2012
UserVendor
Activation via File (Offline)

Page 35Wibu-Systems 2012 Page 35
Activation Wizard
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License Portal
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License Portal II
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License Portal III
Page 39Wibu-Systems 2012
License Portal Customization
1
A Note to the Analyst
This template is designed to allow a new Frost & Sullivan analyst to create a high quality deliver...
2
Lecture Capture & Video Webcasting
Video
Enabled
Consumer
Devices
Broadcast &
Cinematography Cameras
Encoding & Transcod...
3
Security
Entitlement Management
Monetization = Entitlement Management + Piracy Prevention
Entitlement Management is Nece...
4
Losses from
piracy can
become
significant,
and they hurt
both software
vendors and
their
customers.
Source: Frost & Sull...
5
Key Market Trends in Software Monetization
• Keeping software monetized and keeping IP secure is a
harder challenge in i...
6
Considerations in Choosing an LM System
7
Vendor Profile: Wibu-Systems
Seamless
0
1
2 3
4
5
Scalable
0
1
2 3
4
5
Secure
0
1
2 3
4
5
• Seamless in development and ...
8
Critical
License management systems, once deployed, are very hard to replace.
The process is deeply disruptive and extre...
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Q&A
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Customer Centric View of Best Practices in Software Monetization

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Software Monetization is the capability to effectively maximize your software revenue by meeting market demands. As such, it is the combination of entitlement management and piracy prevention. The entitlement management is the foundation upon which license management is built. It includes in fact the definition of software SKUs, the definition and the enforcement of license policies, backoffice functions, like license generation, tracking and transaction management, as well as usability functions, like the transfer or the upgrade of licenses, usage auditing and more.

But enforcement implicitly assumes security; security is just but another side of the same coin. And losses from piracy are real: a great deal of software is unlicensed across the whole world; this robs nations of jobs and tax revenues. Moreover competitors using pirated software undercut legitimate licensees, creating a negative feedback loop.

Wibu-Systems’ CodeMeter® technology offers software publishers a seamless, scalable and most of all secure platform, providing the most stringent security protocols meant at safeguarding your IP, and multiple licensing models that adapt to your distribution channels.

This presentation is loaded with new perspectives from Frost & Sullivan Industry Analysts for the growth of your business. Software monetization is the key strategy to grow your top line revenues while controlling bottom line costs. The 3 S’s of Wibu-Systems unveiled: seamless, secure and scalable technology. Real business usages you can apply to increase the strength of your application and multiply licensing models.

Published in: Software
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Customer Centric View of Best Practices in Software Monetization

  1. 1. Page 1WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Oliver Winzenried CEO oliver.winzenried@wibu.com Customer centric view of best practices in software monetization Welcome to our Webinar
  2. 2. Page 2WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Webinar Agenda  Introduction of speakers  Avni Rambhia, Senior Industry Analyst, Frost&Sullivan  Ruediger Kuegler, Security Expert, Wibu-Systems  Oliver Winzenried, Founder and CEO, Wibu-Systems  Intro Wibu-Systems by Oliver Winzenried  Solution Demonstration by Ruediger Kuegler  F&S requirements analysis and conclusions  Some use cases  Q & A: Questions and Answers
  3. 3. Page 3WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization 1989... 2012: > 20 years WIBU-SYSTEMS  Founded 1989 by Oliver Winzenried and Marcellus Buchheit  Privately held independent company  Headquarters at Karlsruhe, Germany  Subsidiaries in: USA, Netherlands, Belgium, China, Spain, Portugal, United Kingdom  Focus on Protection, Licensing and Security
  4. 4. Page 5WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Software Monetization: Maximizing revenues Help customers to sell more. Due to  less product piracy  increased target user groups  flexible licensing
  5. 5. Page 6WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Challenges Piracy Reduction IP Protection Production Data Features on Demand Access Control Integrity Protection
  6. 6. Page 7WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization The solution: CodeMeter Technology CF-Card CmCard/CF SD-Card CmCard/SD USB CmStick/C Basic µSD-Card CmCard/µSD USB CmStick Link to the data sheets: http://www.wibu.com/en/hardwarebasierter-kopierschutz.html Intern CmCard/I Express-Card CmCard/E Activation CmActLicense PC-Card CmCard Chip CmASIC
  7. 7. Page 8WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Thousands of Customers, Millions of Dongles
  8. 8. Page 1Wibu-Systems 2012 CodeMeter Product Overview Rüdiger Kügler VP Sales | Security Expert rk@wibu.com
  9. 9. Page 2Wibu-Systems 2012 Who takes part? Vendor • Software protection • Software licensing • Process integration User • Uses protected and licensed software
  10. 10. Page 3Wibu-Systems 2012 LICENSE ACTIVATION View of the User
  11. 11. Page 4Wibu-Systems 2012  User gets his ticket with order confirmation delivery notice  User starts software and activates it  Software is ready to use  Activation via customer portal  Offline license file transfer View of the User
  12. 12. Page 5Wibu-Systems 2012 1) User gets Order Confirmation
  13. 13. Page 6Wibu-Systems 2012 2) User starts Software
  14. 14. Page 7Wibu-Systems 2012 2) User starts Software II
  15. 15. Page 8Wibu-Systems 2012 2) User starts Software III
  16. 16. Page 9Wibu-Systems 2012 2) User starts Software IV
  17. 17. Page 10Wibu-Systems 2012 3) Software works
  18. 18. Page 11Wibu-Systems 2012 Transparent license management
  19. 19. Page 12Wibu-Systems 2012 OVERVIEW View of the Vendor
  20. 20. Page 13Wibu-Systems 2012 CodeMeter for the Vendor Technology (CmDongle / CmActLicenses) Software Integration Backoffice Integration AxProtector IxProtector CodeMeter License Central Dongles: CmDongle (USB, SD, CF, µSD, …) Softlicenses: CodeMeter SmartBind® License Models: Single User, Trial, Network, ….
  21. 21. Page 14Wibu-Systems 2012 CODEMETER TECHNOLOGY View of the Vendor
  22. 22. Page 15Wibu-Systems 2012 Realizing license models Single User License Floating Network Licenses Software Renting Pay-Per-Use Modular Licensing Trial Licenses Downgrade License Software Assurance High Availability Licenses … Text License Quantity Expiration Time Usage Period Unit Counter Feature Map Product Code Maintainance Period Customer Own License Information … LicenseModels ProductItemOptions
  23. 23. Page 16Wibu-Systems 2012 Secure license storage  CmActLicense  State-Of-The-Art Binding to hardware fingerprint of PC  Dynamic fingerprint  Tolerance level  Trial license mode  Extendable  CmDongle  Hardware with secure Smartcard chip  Mobile usage CmDongle Software CmActLicense CodeMeter License Server
  24. 24. Page 17Wibu-Systems 2012 SmartBind®: Generation of Binding HD ID Mac 2 CPU type CPU ID TPM ID Mac 1 … HD ID CPU type CPU ID Mac 1 … HD ID CPU type CPU ID Mac 1 … Redudancy Bits Fingerprint Inventory List Redudancy Bits Catalogue Available Properties Property Vector
  25. 25. Page 18Wibu-Systems 2012 Original Property VectorHD ID CPU type CPU ID … Mac 1 SmartBind®: Check of Binding (== OK) HD ID Mac 2 CPU type CPU ID TPM ID Mac 1 … HD ID CPU type CPU ID Mac 2 … HD ID CPU type CPU ID … Fingerprint Catalogue Current Available Properties Reconstructed Property Vector Inventory List Redundancy Bits
  26. 26. Page 19Wibu-Systems 2012 Original Property VectorHD ID CPU type CPU ID Mac 1 … SmartBind®: Check of Binding (!= OK) HD ID Mac 2 CPU type CPU ID TPM ID Mac 1 … HD ID Mac 2 … HD ID … Catalogue Inventory List Redundancy Bits Remaining Gap CPU type CPU type Different CPU ID Current Available Properties
  27. 27. Page 21Wibu-Systems 2012 SOFTWARE INTEGRATION View of the Vendor
  28. 28. Page 22Wibu-Systems 2012 Integration into the Software  Automatic Protection  AxProtector  Windows 32-bit / 64-bit, Mac OS X, Linux .NET Assemblies, Java J2SE and J2EE  Software Protection API  IxProtector  Encryption of code parts  Automatic implementation of cryptographic challenges  CodeMeter Core API  Additional functionality (Online Activation)
  29. 29. Page 23Wibu-Systems 2012 AxProtector = Wrapper Why do I need a wrapper?
  30. 30. Page 24Wibu-Systems 2012 Application with simple API calls .Net (and Java) code can be disassembled very easily
  31. 31. Page 25Wibu-Systems 2012 Hacker removes license check
  32. 32. Page 26Wibu-Systems 2012 Cracked application License check is removed
  33. 33. Page 27Wibu-Systems 2012 Application with obfuscation Code still readable
  34. 34. Page 28Wibu-Systems 2012 AxProtector/IxProtector .Net Compiled application Release version Header Code Header Stub Code (without Intellectual Properties) AxEngine (Security Engine) Encryped Code (original Code with Intellectual Properties) Ax/IxProtector Definition of licenses and modules
  35. 35. Page 29Wibu-Systems 2012 Encrypted Code with AxProtector Code is no longer readable
  36. 36. Page 30Wibu-Systems 2012 BACK OFFICE INTEGRATION View of the Vendor
  37. 37. Page 31Wibu-Systems 2012 Ticket / Fingerprint 4 User Online Activation Server Vendor Ticket 3 License 5 Ticket 2 SKU 1 Online Activation Server
  38. 38. Page 32Wibu-Systems 2012 Backoffice Integration Business Logic User Interface License CentralERP CRM Webdepot Gateway Connector eCommerce (Digital River) CRM (Sales Force) Activation Wizard Browser Connector Webserver in DMZ C C Database Inhouse Application G C
  39. 39. Page 33Wibu-Systems 2012 Activation via Internet (Online) Vendor UserSOAP (XML), JSON, HTTP Post Ticket + Fingerprint License file Receipt
  40. 40. Page 34Wibu-Systems 2012 UserVendor Activation via File (Offline) 
  41. 41. Page 35Wibu-Systems 2012 Page 35 Activation Wizard
  42. 42. Page 36Wibu-Systems 2012 License Portal
  43. 43. Page 37Wibu-Systems 2012 License Portal II
  44. 44. Page 38Wibu-Systems 2012 License Portal III
  45. 45. Page 39Wibu-Systems 2012 License Portal Customization
  46. 46. 1 A Note to the Analyst This template is designed to allow a new Frost & Sullivan analyst to create a high quality deliverable that meets or exceeds the standards expected by our clients. At the same time, it is not designed to inhibit more experienced analysts in creating additional valuable content. The minimum requirements for all ME studies completed in PowerPoint are contained in this template. Analysts are encouraged to go beyond these required slides and provide additional information if clearly adding value for clients. In creating new slides, remember that literally, one picture is worth one thousand words—choose graphics over text whenever possible and use the PPT TimeSaver 2.0 to ensure consistent, high quality look and feel. Analysts are not to change the order of or delete slides/sections, unless clearly not relevant to the topic under study—such deletions or changes must be justified to both the Strategic Review Committee (SRC) and assigned editor. Text contained should never be less than 14 pitch Arial font except where otherwise noted, in footnotes, or chart/graph labels. PPT charts should use the “beveled” style shown herein (called “Style 26” in Office). No text or graphics should extend into the border of a slide. Red font in this template is used ONLY to provide instructions or indicate where variable text should be inserted; generally red font should not be used in the text of final deliverables, except for extreme emphasis. Slide titles must be less than 300 characters to properly upload onto Frost.com. Hyperlinks will work in PPT when in presentation mode and when put into PDF format. Finally, suggestions for improvement are encouraged; please provide them to: dan.goldenberg@frost.com and rufus.connell@frost.com. Best Practices In Software Monetization – A Customer Perspective Avni Rambhia, Industry Manager Digital Media Group December 2012
  47. 47. 2 Lecture Capture & Video Webcasting Video Enabled Consumer Devices Broadcast & Cinematography Cameras Encoding & Transcoding Acquisition DeliveryMiddleware and Workflow Enterprise Media and Entertainment Encoding & Transcoding Digital Asset Management & Enterprise Content Management MediaAsset Management Video &Ad Insertion Servers Nonlinear Editing IRDs Online Video & Web Analytics Multi-Platform Delivery & CDNs Multi-Platform Delivery & CDNs Content Protection, Entitlement & Rights Management STORAGE STORAGE MarketingAutomationMarketing Process Optimization Dynamic Publishing Animation Software Animation & CAE Software 3D Technologies Video Switchers IP Video Network Management Online Video Platforms & Analytics Enterprise Search Pay TV Platforms Online Video Platforms Digital Signage Content Protection, Entitlement & Rights Management Broadcast Scheduling Systems Covering The Digital Media Value Chain Source: Frost & Sullivan analysis.
  48. 48. 3 Security Entitlement Management Monetization = Entitlement Management + Piracy Prevention Entitlement Management is Necessary • Define software SKUs, define and enforce licensing policies • Back-office functions: license generation, tracking, transaction management and more • Usability functions: transferring & upgrading licenses, auditing usage and more • EM is the basic foundation upon which LM is built Security is Hard, But Another Side of the Same Coin • Rich EM routines are meaningless if they can be trivially bypassed or circumvented • Enforcement implicitly assumes security • Controlling digital software is hard; technology advancements favor hackers • Keeping honest users honest often seems like a more reasonable target • This is not a viable long-term monetization strategy; much lower ROI on LM investment
  49. 49. 4 Losses from piracy can become significant, and they hurt both software vendors and their customers. Source: Frost & Sullivan China placed second in the world in the number of connections made to share unauthorized copies of ESA members’ game products – accounting for more than 11.5% of the world’s total..…Russia has not signaled a serious commitment to addressing piracy occurring through the Internet, which has exploded [because there is] no legal framework for addressing online piracy, coupled with steadily growing consumer access to broadband. - United States Congressional International Anti-Piracy Caucus (IAPC) [Competitors using pirated software undercut legitimate licensees on price, creating a negative feedback loop.] If EDA industry doesn’t secure a level playing field for our customers, our industries will suffer greatly – EDA Consortium Losses From Piracy Are Real In the industrial sector, 2 in 3 members of the VDMA (the German Engineering Federation) have already experienced product piracy and/or counterfeiting. All told, intellectual property theft costs U.S. businesses billions of dollars a year and robs the nation of jobs and lost tax revenues. – U.S. Federal Bureau of Investigation (FBI) Worldwide, 42 percent of software used in 2011 was unlicensed - Business Software Alliance
  50. 50. 5 Key Market Trends in Software Monetization • Keeping software monetized and keeping IP secure is a harder challenge in international markets • An issue for your customers, as much as for you • License Management needs to keep pace with evolving business models and product architectures • Analytics is increasingly important • Installation complexity, run time cost and performance impact are increasingly non-negotiable • At the same time, security is also increasingly non- negotiable • This nudges LM towards being a first-class feature rather than an afterthought • Homegrown LM highly prevalent in the market today • Fragmented platforms, multiple business models, cost control pressures, need for security and speed of innovation necessitate a formalized LM strategy Market Trends Geographical Expansion = Piracy Exposure SaaS and Hybrid Form Factors Complement On-Premise User Experience Around License Management Is High Priority Feature Homegrown LM is not commercially viable for most ISVs Peak activity between now and 2014 Peak activity 2014 to 2016
  51. 51. 6 Considerations in Choosing an LM System
  52. 52. 7 Vendor Profile: Wibu-Systems Seamless 0 1 2 3 4 5 Scalable 0 1 2 3 4 5 Secure 0 1 2 3 4 5 • Seamless in development and deployment • License Central can be quickly personalized, or custom-built for ISV infrastructure/CRM system with support from Wibu-Systems • CodeMeter dongles move freely from computer to computer or server to server • Dongles are aesthetic branding opportunities • Tolerance built into activation verification minimizes false positives and disruption • Scalable in terms of architecture and platforms • CodeMeter dongles support number of interfaces • Desktop, embedded and server platform support • Wide range of licensing model support • Protection process works the same way for CmDongle and CmActLicense, so ISVs can use either or both equivalently. • Standardized encryption algorithms • Company maintains an equivalent ongoing focus on functionality and security • Internal innovation driving improved hardware and software locking and security technology • External hacker challenges used regularly to test and validate company products
  53. 53. 8 Critical License management systems, once deployed, are very hard to replace. The process is deeply disruptive and extremely expensive. So choose carefully the first time. Urgent Key Start with a clear view of prioritized functional requirements and business-appropriate security and cost targets. Then, choose a license management solution that fits. Essential Basic Crafting a License Management Strategy: Key Takeaways Key takeaways for an ISV, in descending order Ensure your chosen solution will scale with your business and evolve with your product over time, and can also keep pace with expansion and evolution of your customers. Proactively craft a strategy and execute it with cross-team involvement including technical and financial management, marketing, engineering, testing and operations. Security and piracy management is as important as entitlement management in crafting a comprehensive license management solution for your products and your business.
  54. 54. Page 11WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Customer Use Cases: Bosch Aftermarket Software Monetization:  Application for Aftermarket business  Easy deployment is necessary for users  Subscription based licensing  CmActLicense at user side  License Central for sales process integration
  55. 55. Page 12WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Customer Use Cases: Sirona Software Monetization:  IP protection  High performance .NET protection  Integrity protection (MPG)  Increased market through flexible licensing  License Central in sales process
  56. 56. Page 13WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Customer Use Cases: Wincor Nixdorf Software Monetization:  Protection against unauthorized use  Access control for diagnostic functions  Document encryption for manuals / service infos  Fulfillment of PCI DSS requirements  Automation of standard procedures to make on site service more efficient
  57. 57. Page 14WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization Q&A Thank You  Contact us for next steps: Germany: +49-721-931720 USA: +1-425-7756900 China: +86-21-55661790  www.wibu.com, info@wibu.com

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