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Turning Technology Threats
   into Opportunities –
   The Licensing View


 March 20th, 2012
 Ansgar Dodt
 Vice President SRM EMEA
 SafeNet Inc.

© SafeNet Confidential and Proprietary
Agenda

  Licensing

  Technology Challenges and Countermeasures

  The Opportunity




© SafeNet Confidential and Proprietary

                                               2
Primary Licensing Goals


                                                            Unintentional overuse
                                             Prevent
                                         license abuse
                                                               Intentional abuse

   Licensing
                                                             High- and low-value
                                         Tailor licensing         segments
                                            to market
                                           segments         Different use cases and
                                                                 billing methods


© SafeNet Confidential and Proprietary

                                                                                      3
Maximizing Revenues
Price




                                         Higher Price

          Revenue



                       Volume




© SafeNet Confidential and Proprietary
                                                        4
                                                        4
Segmented Offering
                                                      • Packages with
                                                        different values,
                                                        where values can be
                                                         • Features
                  + Value A, B and C                     • Ressources
Price




                                                         • Service Levels
                       + Value A, B or C
                                                         • Frequency/
                                 Standard Package          duration of use
                                      Light Version      • …
                       Volume                         • Price differentiation if
                                                        additional revenues
                                                        exceed cost of
                                                        pricing complexity

© SafeNet Confidential and Proprietary
                                                                                   5
                                                                                   5
Agenda

  Licensing

  Technology Challenges and Countermeasures

  The Opportunity




© SafeNet Confidential and Proprietary

                                               6
Technology Threats




                         Cloud
                                                 2
                                         1




                                             3
© SafeNet Confidential and Proprietary

                                                     7
1 Licensing Cloud Services -
    Traditional Licensing not Usable




                                          Your
                                          Cloud
                                         Service




          On-Prem
          License
           Server



© SafeNet Confidential and Proprietary

                                                   8
1 Licensing Cloud Services
    Licensing for the Cloud from the Cloud



                                            Your
                                            Cloud
                                           Service




                                         Cloud-
                                          based
                                         License
                                         Server


© SafeNet Confidential and Proprietary

                                                     9
1 b Licensing On-Prem ―as if‖ Cloud Service
      Subscription or Usage-Based



                                                              Your On-
                                                              Premise
                                                               Appl.


                                         Time-based license/ usage data




                          Cloud-
                           based                     or         On-Prem
                          License                               License
                          Server                                 Server


© SafeNet Confidential and Proprietary

                                                                          10
2 Licensing on Mobile Platforms -
    Issue #1: Variety of Platforms




   Source: Asymco
© SafeNet Confidential and Proprietary

                                         11
2 Licensing on Mobile Platforms -
    Issue #2: Appstore Restrictions

                       we will pay you a royalty equal to the
          For each sale of an App,

          greater of 70% of the purchase price or 20% of
          the List Price as of the purchase date (70/30 is standard, this 20/80 split is somewhat odd
          and confusing)
          If your app is available on other platforms, you have to make sure to update it at the same time on
          Amazon’s store that you do in any other store

          Apps will have to use Amazon DRM — meaning they will only
          work on devices they approve

                      right to pull any app for any reason
          Amazon has the

          ―We have sole discretion to determine all features

          and operations of this program and to set the
          retail price and other terms on which we sell Apps.‖


© SafeNet Confidential and Proprietary

                                                                                                                12
2 Licensing on Mobile Platforms -
    Issue #3: Piracy (Example Android App)




   Source: Keyeslabs.com, Network World September 30th, 2010
© SafeNet Confidential and Proprietary

                                                               13
2 Licensing on Mobile Platforms -
    Deliver Service and License From Cloud



                                            Your
                                            Cloud
                                           Service




                                         Cloud-
                                          based
                                         License
                                         Server


© SafeNet Confidential and Proprietary

                                                     14
3 Licensing on Virtualized Infrastructure -
    License locking can become very difficult




                                           Your
                                            On-
                                           Prem
                                           Appl.




                                         On-Prem
                                         License
                                          Server



© SafeNet Confidential and Proprietary

                                                   15
3 Licensing on Virtualized Infrastructure -
    License Delivery From Cloud




                                                               Your
                                                                On-
                                                               Prem
                                                               Appl.
                                         Does not have to be
                                         always connected


                          Cloud-
                           based
                          License
                          Server

© SafeNet Confidential and Proprietary

                                                                       16
Agenda

  Licensing

  Technology Challenges and Countermeasures

  The Opportunity




© SafeNet Confidential and Proprietary

                                               17
Primary Benefits of the Internet



                                         Efficient access
                                          and delivery


           Internet



                                            Two-way-
                                         communications




© SafeNet Confidential and Proprietary

                                                            18
Capturing Value from Two-Way-
  Communications

                                                       Track usage




                                                 Provide           Process data
                                               recommen-
                                                 dations/
                                                 improve
                                                  offering



                        Many users appreciate usage data collection if a) ethical,
                               b) outcome is helpful and c) not aggressive


© SafeNet Confidential and Proprietary

                                                                                     19
Business Intelligence

                                                •   What is the detailed usage of features,
                                   Fine-            functionality within features?
                                   grain        •   What are the typical workflows?
                                   usage        •   What functionality is being re-used/
                                                    appreciated, what only once/disregarded?

                                                •   Who is actually using what they have paid
                          Usage of                  for?
                         entitlements           •   Who is likely to need more ―capacity‖?



                                                •   Who has the right to use what
                         Entitlements               service/appl., what features, what SLA, at
                                                    what time, how often/ how much etc.*




* For on-premise applications also versioning
© SafeNet Confidential and Proprietary

                                                                                                 20
Product Management/ Marketing Intelligence
Usage




                                                                        Feature experience
                    Relevant Feature                                    does not meet
                                                                        expectations
Usage




                                         Feature relevant, but   Feature not relevant,
                                         not well advertised/    not advertised or not
                                         easily accessible       easily accessible




                                   Time
© SafeNet Confidential and Proprietary
                                                                        Time
                                                                                             21
Sales Intelligence
License Usage


                                              Max


                    Need for more capacity                   Unhappy customer, or
                                                             alternative solution
Trial Usage




                        Probably not a good
                                                    Prospect not trialling
                        trial experience




                                   Time
© SafeNet Confidential and Proprietary
                                                            Time
                                                                                    22
The Management/BI Layer



                                                                          ERP


                                                             Manage-
                                          Your
                                                               ment
                                          Cloud
                                                             Platform     CRM
                                         Service




                                                                         Product
                                                                        Catalogue


                                                   Cloud-
                                                    based
                                                                         Billing
                                                   License
                                                                         Engine
                                                   Server


© SafeNet Confidential and Proprietary

                                                                                    23
Turning Technology Threats
   into Opportunities –
   The Licensing View


 March 20th, 2012
 Ansgar Dodt
 Vice President SRM EMEA
 SafeNet Inc.

© SafeNet Confidential and Proprietary

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Turning Technology Threats into Opportunities – The Licensing View

  • 1. Turning Technology Threats into Opportunities – The Licensing View March 20th, 2012 Ansgar Dodt Vice President SRM EMEA SafeNet Inc. © SafeNet Confidential and Proprietary
  • 2. Agenda  Licensing  Technology Challenges and Countermeasures  The Opportunity © SafeNet Confidential and Proprietary 2
  • 3. Primary Licensing Goals Unintentional overuse Prevent license abuse Intentional abuse Licensing High- and low-value Tailor licensing segments to market segments Different use cases and billing methods © SafeNet Confidential and Proprietary 3
  • 4. Maximizing Revenues Price Higher Price Revenue Volume © SafeNet Confidential and Proprietary 4 4
  • 5. Segmented Offering • Packages with different values, where values can be • Features + Value A, B and C • Ressources Price • Service Levels + Value A, B or C • Frequency/ Standard Package duration of use Light Version • … Volume • Price differentiation if additional revenues exceed cost of pricing complexity © SafeNet Confidential and Proprietary 5 5
  • 6. Agenda  Licensing  Technology Challenges and Countermeasures  The Opportunity © SafeNet Confidential and Proprietary 6
  • 7. Technology Threats Cloud 2 1 3 © SafeNet Confidential and Proprietary 7
  • 8. 1 Licensing Cloud Services - Traditional Licensing not Usable Your Cloud Service On-Prem License Server © SafeNet Confidential and Proprietary 8
  • 9. 1 Licensing Cloud Services Licensing for the Cloud from the Cloud Your Cloud Service Cloud- based License Server © SafeNet Confidential and Proprietary 9
  • 10. 1 b Licensing On-Prem ―as if‖ Cloud Service Subscription or Usage-Based Your On- Premise Appl. Time-based license/ usage data Cloud- based or On-Prem License License Server Server © SafeNet Confidential and Proprietary 10
  • 11. 2 Licensing on Mobile Platforms - Issue #1: Variety of Platforms Source: Asymco © SafeNet Confidential and Proprietary 11
  • 12. 2 Licensing on Mobile Platforms - Issue #2: Appstore Restrictions we will pay you a royalty equal to the For each sale of an App, greater of 70% of the purchase price or 20% of the List Price as of the purchase date (70/30 is standard, this 20/80 split is somewhat odd and confusing) If your app is available on other platforms, you have to make sure to update it at the same time on Amazon’s store that you do in any other store Apps will have to use Amazon DRM — meaning they will only work on devices they approve right to pull any app for any reason Amazon has the ―We have sole discretion to determine all features and operations of this program and to set the retail price and other terms on which we sell Apps.‖ © SafeNet Confidential and Proprietary 12
  • 13. 2 Licensing on Mobile Platforms - Issue #3: Piracy (Example Android App) Source: Keyeslabs.com, Network World September 30th, 2010 © SafeNet Confidential and Proprietary 13
  • 14. 2 Licensing on Mobile Platforms - Deliver Service and License From Cloud Your Cloud Service Cloud- based License Server © SafeNet Confidential and Proprietary 14
  • 15. 3 Licensing on Virtualized Infrastructure - License locking can become very difficult Your On- Prem Appl. On-Prem License Server © SafeNet Confidential and Proprietary 15
  • 16. 3 Licensing on Virtualized Infrastructure - License Delivery From Cloud Your On- Prem Appl. Does not have to be always connected Cloud- based License Server © SafeNet Confidential and Proprietary 16
  • 17. Agenda  Licensing  Technology Challenges and Countermeasures  The Opportunity © SafeNet Confidential and Proprietary 17
  • 18. Primary Benefits of the Internet Efficient access and delivery Internet Two-way- communications © SafeNet Confidential and Proprietary 18
  • 19. Capturing Value from Two-Way- Communications Track usage Provide Process data recommen- dations/ improve offering Many users appreciate usage data collection if a) ethical, b) outcome is helpful and c) not aggressive © SafeNet Confidential and Proprietary 19
  • 20. Business Intelligence • What is the detailed usage of features, Fine- functionality within features? grain • What are the typical workflows? usage • What functionality is being re-used/ appreciated, what only once/disregarded? • Who is actually using what they have paid Usage of for? entitlements • Who is likely to need more ―capacity‖? • Who has the right to use what Entitlements service/appl., what features, what SLA, at what time, how often/ how much etc.* * For on-premise applications also versioning © SafeNet Confidential and Proprietary 20
  • 21. Product Management/ Marketing Intelligence Usage Feature experience Relevant Feature does not meet expectations Usage Feature relevant, but Feature not relevant, not well advertised/ not advertised or not easily accessible easily accessible Time © SafeNet Confidential and Proprietary Time 21
  • 22. Sales Intelligence License Usage Max Need for more capacity Unhappy customer, or alternative solution Trial Usage Probably not a good Prospect not trialling trial experience Time © SafeNet Confidential and Proprietary Time 22
  • 23. The Management/BI Layer ERP Manage- Your ment Cloud Platform CRM Service Product Catalogue Cloud- based Billing License Engine Server © SafeNet Confidential and Proprietary 23
  • 24. Turning Technology Threats into Opportunities – The Licensing View March 20th, 2012 Ansgar Dodt Vice President SRM EMEA SafeNet Inc. © SafeNet Confidential and Proprietary