7steps software-licensing
- 1. 7 Steps to the Software Licensing (R)evolutionHow to Boost Software Profits With New Licensing & Entitlement Best PracticesHave a Question?SRMQuestions@SafeNet-Inc.comLearn more:www.safenet-inc.com/SentinelDarim Rahmatallah – Product Management, SafeNetBastiaan Van Dorsten – Pre Sales Consultant, SafeNetDavid DiMillo – Principal Consultant, SafeNet
- 2. Who is SafeNet?SRM ExpertiseLeader in anti-piracy, IP protection, enterprise licensing, entitlement management and SaaS application management solutions (Sentinel)Global 25,000 customers in 100 countriesEmployees 1,600 in 25 countriesRevenue ~$450 millionPosition 4th largest global security companyFounded 1983
- 3. What Are Some Teams Saying?“We need more control over customer usage”Lots of information in small buckets“where do we begin??”“who is going to own this? Not it!”“this is more work than we thought it would be”Result – a bit unorganized and unsure where to start
- 4. Process vs. TechnologyOur clients often think they have a technical problem
- 5. That's how they find us!
- 6. Its usually more of a process problem
- 7. A focus on technology alone ends up in a bad placeLicensing Project Lifecycle1. Corporate Licensing Strategy, Priorities and Vision2. Licensing Philosophies and Policies3. License Model Development4. Licensing Requirement Specification DevelopmentYour licensing project leader willdeal with every element of the lifecycle5. Licensing Use Case Identification6. Licensing Technology / Vendor selection7. Licensing Architecture Definition and Roadmap8. Licensing Workflows and Customer Experience9. Licensing Engineering Plan10. Licensing Development & Implementation11. Internal Preparation, Communication and Enablement12. External Licensing Program Roll Out13. Licensing Program Management and Optimization
- 8. Business Integration1. Corporate Licensing Strategy, Priorities and Vision2. Licensing Philosophies and Policies3. License Model Development4. Licensing Requirement Specification DevelopmentBusiness Process IntegrationTechnology Integration5. Licensing Use Case Identification6. Licensing Technology / Vendor selection7. Licensing Architecture Definition and RoadmapGravity8. Licensing Workflows and Customer Experience9. Licensing Engineering Plan10. Licensing Development & Implementation“You likely have as many business process challenges as technical issues”11. Internal Preparation, Communication and Enablement“Technology alone is not going to solve your problem”12. External Licensing Program Roll Out13. Licensing Program Management and Optimization
- 9. Why is software licensing a gray area for some businesses?License EnforcementLicense Back OfficeITSales
- 10. Why is software licensing a gray area for some businesses?License EnforcementLicense Back OfficeITSales
- 11. What are these teams really missing?
- 12. The Vision“how do all the pieces fit together?”“how is it all going to work?”“what things can we outsource?”“what things do WE have to do?”
- 13. Planning WorkshopsSales ModelsOperationsEnforcementBegin by starting at the top
- 14. How are we selling?
- 15. How do we want tosell?
- 16. What if you had more control over product behavior?
- 17. Fulfillment and Delivery Mechanics
- 18. What happens when our sales teams place an order?
- 19. What do we want to happen?
- 20. How do we want to deliver?
- 21. Talk about your customer experience
- 23. Where do we add controls?
- 24. How do we feel about security vs. piracy?
- 25. Technology investigationBuilding the VisionAh… land ho!
- 26. I can see it!CAPMCLMBUMfgToolsSoftware Activation - Critical ComponentsInitial Requirements & Platform dependent workSize and Scoping requirements and dependencies, prioritization and ConsistencyEnabling platform Independent technology & 3rd Party engagementLicense generator, Install licenses on new devicesIOS InfraCisco Product License Registration PortalPortals for various licensing workflowsCisco.com tools e.g. Feature NavigatorFulfillmentNetwork-wide License Management ToolCustomer support and and troubleshooting
- 27. Workshop OutcomesOn process vs. technology…“When you started with all the process discussions yesterday, I really wondered where it all was going. But now I realize they were exactly the conversations we needed to have”- US Software Vendor “If we are only focus on the technology, we will fail. We have to have a broader view and look at all the processes surrounding the technology”- EMEA Software Vendor
- 28. Workshop OutcomesUK CompanyIdentified 4 new ways to sell through the workshopUS CompanyCame to the workshop with little idea of how things would work. Had their vision in hand 2 days later.EMEA CompanyIdentified a customer compliance problem during the workshop they didn't know they had
- 29. Case StudyVision and business process evolution in practice
- 31. ConsolidationLet’s look at how one company dealt with this problem…
- 34. ~$500M in annual revenues for product protected with license enforcement
- 35. 3 unique licensing technologies
- 36. 3 unique customer experiences for license key fulfillment
- 38. 50% of all keys generated manually using 13 full time headcount worldwide
- 39. Automated tool used for the remaining 50%
- 40. Pain Points
- 41. Manual license key generation was expensive and slow
- 42. Supporting separate customer experiences was confusing and not optimalManual process = $$$80% of the total cost was in headcount!
- 43. Getting Efficient, Y2Major changes
- 44. Moved all license key generation to a single, scalable platform with a customer self-service web portal
- 45. Consolidated user workflows to a single experience
- 46. Reduced licensing support staff by 5 headcount
- 48. Consolidated to 2 licensing technologies
- 49. Single customer experience for license key fulfillment
- 50. Single sales rep experience for issuing evaluation keys
- 51. ResultAdditional spend of $165K in tooling enabled $500K/yr cost reduction in headcount plus delivered a single and much more feature-rich customer experienceWith a much better user experience!Reduced headcount cost by 38%
- 52. Scalability pays off big, Y4Do we need to add 14 more people?Major changes
- 53. ISV completed 4 incremental acquisitions
- 54. Added 100+ incremental products
- 56. Each acquired company had their own license key systems with a total of 14 headcount manually generating keys
- 57. ResultThe ISV moved all 4 license managers of the acquired companies to their corporate standard at minimal costNo!Zero.
- 58. Cost comparisonThe “do nothing” trajectoryHad the company maintained multiple licensing systems and manual key generation:Potential run rateActual performanceScalable customer-self service license key fulfillment system:Actual!
- 59. What’s the Lesson?By introducing a self-service entitlement and customer fulfillment portal, the ISV:Reduced licensing support costby 38% in the first year and by 66% including acquisitions
- 60. Delivered a single customer experiencefor their entire product portfolio
- 61. Developed a scalable corporate standardfor license key delivery
- 62. Absorbed multiple acquisitionsat reasonable incremental costCentralized License & Entitlement Management IT: One license backoffice system to manage that can support multiple licensing technologiesOperations: Single tool for defining licensing models and license definitionsEnd User: Single self-service license management portalCustomer Service: Can assist customers with entitlement lookup and activationSales & Marketing: Track entitlements and activationsProduct Management: collect and analyze product entitlement and activation data
- 63. Sentinel™ EMS in ActionService Tier NodesISV User (YOU)ISV AppAPIRuntimePartnersSCCDefineLoad BalancerEntitleAuthentication ServerControlReportInternalSupportSalesProd Mgt
- 64. Why licensing implementations failImproper focus“Well, this is a development and IT project, right?”
- 65. “Engineering our products to use keys solves our problem, right?”
- 66. “Our IT guys can easily build a system to deliver keys, right?”Lack of Ownership and ExpertiseMany stakeholders across the company but no real owner
- 67. Leadership by committee isn’t a formula for success
- 68. Not considering all the stakeholders and use cases can lead to inadequate designsNot prepared for impactCustomer licensing (system down) issues escalate through sales and support quickly
- 69. Inadequate business processes lead to confusion and frustration
- 70. Poor licensing designs can be slow and expensive to correct after going live7 Habits of Successful Licensing ImplementersThey …Have a clear internal ownerHave well-defined licensing philosophy and policiesFocus on the use casesFocus on data structure and qualityFocus on their customersHarvest valuable business analyticsConduct annual business reviews
- 71. Complete Software Licensing Solution
- 72. Choosing the Right Licensing ModelsTime limitedSharedUser reservationPay-per-usePerpetualCommuterVolume TransactionLicensing (VTL)Hold License / Time(minimize downtime)
- 73. Enterprise FeaturesLog file encryptionRedundant Servers*(3 - 11 servers)License RevocationQueued LicensesCapacity LicensingGrace Period** minimize downtime
- 74. Advanced Feature SetAdvanced Feature SetStandard Feature SetFeature Based Licensing BenefitsLicense multiple modules, components or features within a single product.Always ship entire product allowing access to specific applications only.Deliver upgrades by delivering licence updates.VendorEnd Customer¥ £ $ €Activate standard feature setUpgrade to advanced feature setNo new softwaredelivery required
- 75. Licensing & Entitlement ManagementSecure Software Licensing Solutions - Out-of-the-box licensing security solution- Flexible, highly scalable, enterprise-grade licensing toolkitSophisticated Software License & Entitlement Management- Web-based software license and entitlement management systemCloud ServicesSaaS Licensing & Entitlement Management Services- Packaging, provisioning, metering, and management services for SaaS applicationsSoftware Licensing Professional ServicesProfessional Services- Software licensing consulting and implementation services
- 76. Ask the ExpertsQ&APlease submit your question using the ASK A QUESTION button on your screen
- 77. The software licensing community to share ideas, find experts, and learn about the latest trends.SafeNet on the Webwww.SafeNet-Inc.com/SentinelLicensingLive Blog www.LicensingLive.comTwitter www.twitter.com/LicensingLive LinkedIn http://www.linkedin.com/groups?gid=2878111YouTube www.youtube.com/user/LicensingLiveBrightTalk Webcasts http://www.brighttalk.com/channel/5572
- 78. Thank You