Nobody would eat a whole salami from end to end. We might all want to, but we wouldn’t try (or manage). Instead, we proceed slice by slice. This strategy, also called the salami tactic, can be applied to many other walks of life, and software licensing is one of them. Over their evolution, many software products tend to get bigger and bigger as the developers try to fulfil new user expectations or add new technology capabilities. Some call this bloat, but it is actually a reasonable way of responding to a growing user base with a growing set of needs and expectations. However, few users will need all of the features at once. Usually, they only need a few selected features, creating a dilemma for software developers and their clients: Users don’t want to pay for things they never use, but developers don’t want to give their work away for free. This is where the salami tactic comes back into the picture. Called features-on-demand in the software world, it means that the users are not forced to buy or pay for the entire package (or salami), but only for the features (or slices) they want. Although the term had negative connotations for its originator, Zoltán Pfeiffer, the salami tactic is a great example of a win-win strategy. The seller gets their software to the user at a lower entry price, and the users have the opportunity to spend more for the features they want on top.

1. Motivation – Integration – Success Ruediger Kuegler
VP Sales & Professional Services
Stefan Bamberg
Senior Key Account and Partner Manager
Features-On-Demand
2022-06-22 © WIBU-SYSTEMS AG 2022 - Serving Up Features-on-Demand for Every Appetite 1

2. Where to find the accompanying audio
To access the on-demand replay of this masterclass, please visit
www.wibu.com/wibu-systems-webinars/features-on-demand/access.html
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3. Why Features-On-Demand
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4. Features-On-Demand
 What does Features-On-Demand mean?
 Selling software in different configurations / Modular licensing
 Temporarily need of more licenses
 Pay-Per-Use models
 Why should I use Features-On-Demand?
 Low-cost entry offers for new customers
 Possible increase in sales with after sales business
 Flexible pricing
 New markets – new customers
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5. Integrate Once – Deliver Many
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Integrate Once Deliver Many
Integration into processes
ERP / CRM
E-commerce
Software
License Portal
License
Central
Delivery to the user
License
Central
Integration into software
Software Software
Protection
Suite

6. The Solution: One Software Package – Different Licenses
2022-06-22 © WIBU-SYSTEMS AG 2022 - Serving Up Features-on-Demand for Every Appetite 6
License
• Sample Notepad
• Single User
• Trial
• 30 days
• All other features
License
• Sample Notepad
• Single User
• Features
• Change Font
• Hex View
• C# Highlighting
License
• Sample Notepad
• Single User
• Features
• Hex View
• C# Highlighting
License
• Sample Notepad
• Subscription
• Features
• Premium Edition
Software Software Software Software

7. Which CodeMeter Product
Item Option
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8. Different Product Item Options
 Flat List
 Each module has its own Product Code
 Feature Bits I
 Each module is a bit in the Feature Map
 Feature Bits II
 Own bitmask in (Extended) Protected Data
 Structured List
 Each module has its own Product Code
 Structuring in Module Items
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9. Comparison of the Realization Options
2022-06-22 © WIBU-SYSTEMS AG 2022 - Serving Up Features-on-Demand for Every Appetite 9
Feature
Flat List
Product Codes
Feature Bits I
Feature Map
Feature Bits II
Protected Data
Structured List
Module Items
Security +++ ++ + +++
Number of Modules / Features 2,000 32 >2,000 2,000
Updates with CodeMeter License Central
Simple and
independent
Complex Individual
Replacing the
complete Item
Grouping Licenses in CodeMeter Runtime - Yes Yes Yes
Borrowing Licenses Individual features Entire license Entire license Entire license
Individual Expiration Date Yes - - Yes
Individual Counter (Pay-Per-Use) Yes - - Yes
Individual Number of Concurrent Users Yes - - Yes

10. Integration into the
Software
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11. Integration Options
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Options A B C D E
CodeMeter Core API x x x - -
AxProtector Basic Feature - - x x -
AxProtector Modular Licensing - - - x x
Wibu Universal Protection Interface - - - x x
AxProtector IP Protection - x - - x
Comparison A B C D E
Protection Level low - medium high higher highest high - highest
Starting Without License yes yes - - yes
Integration Effort medium medium medium medium - high medium - high
AxProtector related costs - B + IP B B + M B + M + IP

12. Use Case Sample Notepad
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Feature Basic Standard Premium Product Code
Basic Functions + + + 201,000
Change Font + + + 201,001
Hex View - - + 201,002
C# Syntax Highlighting - + + 201,003
Python Syntax Highlighting - + + 201,004
Debugging - - + 201,005
... .. .. .. ..

13. CodeMeter License Central
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14. Comparison of the Realization Options
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Feature
Flat List
Product Codes
Feature Bits I
Feature Map
Feature Bits II
Protected Data
Structured List
Module Items
Security +++ ++ + +++
Number of Modules / Features 2,000 32 >2,000 2,000
Updates with CodeMeter License Central
Simple and
independent
Complex Individual
Replacing the
complete Item
Grouping Licenses in CodeMeter Runtime - Yes Yes Yes
Borrowing Licenses Individual features Entire license Entire license Entire license
Individual Expiration Date Yes - - Yes
Individual Counter (Pay-Per-Use) Yes - - Yes
Individual Amount of Concurrent User Yes - - Yes
Depends on
ISV‘s processes
Depends on
ISV‘s processes

15. Modelling as Flat List
 Every feature is associated with its own item in CodeMeter License Central
 Features are sold separately
 One ticket with multiple features
 Multiple tickets with multiple features
 Often used when current license and/or customer is not known during the
upsell-process
 Simple e-commerce solution
 Packages can be sold via bundles
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16. Modelling as Module Items
 Every feature is created as a Module Item Child
 Products are created as Module Item Parents
 Children are often added as opt-in or opt-out to the parents
 During creation of a license, the desired children (features) are selected
 User receives one license, which includes the desired features
 During the upsell-process, the old license is replaced with the new license
 Customer and license needs to be selected
 New license can include more or fewer features
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17. Best Practice Tips
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18. Feature-On-Demand and Subscription?
 Feature-On-Demand often offers many selectable features
 Subscription usually offers complete packages
 Either including all products
 Or 2 .. 3 packages (Basic, Standard, Premium)
 Subscriptions for single features are unusual
 Overly complex processes for billing and handling
 Best Practice: Feature-On-Demand & Subscription
 Create a few packages
 Offer subscription for these (few) packages
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19. Global Unlock
 One Product Code unlocks all
 Used for internal licenses
 Unlocks also features, which will be released in the future
 Integration
 Additional Product Code in the License List of AxProtector
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20. https://www.wibu.com
info@wibu.com
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Many thanks for your kind attention
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