Category Archives

13 Posts for Electronic Software Delivery (ESD)

Apr 13
2012 

Exploring the Four Aspects of a Comprehensive Software Monetization Strategy

by Michelle Nerlinger

Software monetization can be viewed as the adoption of any variety of measures an organization takes in order to increase the profitability of their intellectual property, in this case, software. These tactics can range from sophisticated anti-piracy and IP protection techniques to creative pricing and packaging strategies. It is important to note that no individual software monetization technique is greater than the combination of multiple techniques. No matter what type of software application has been developed or how that application is being delivered to the end-user, a comprehensive software monetization strategy hinges on four key factors – how effectively the software publisher can package, control, manage, and monitor, their offering(s).

Oct 5
2011 

Does Your Software Licensing Solution Offer Interoperability?

by Jam Khan

Rarely does an IT system work better in a silo, so a dialogue about the benefits of interoperability seems as redundant as making the case for world peace. Interoperability is a widely used, and often abused, term, but for those that deal with it at a practical level, with poorly integrated systems, it can be somewhat of a holy grail. This is particularly true for electronic license and entitlement management systems.

Electronic licenses and entitlements are unique in that they require coordination between IT, Operations, Product Management and Engineering. They must be integrated into the fabric of a software company’s products, and work seamlessly with order processing and fulfillment systems.

Oct 4
2011 

Unmanaged Software Licensing Causes Buyer Side Angst

by Chris Holland

I have always talked about how important it is for software vendors to include technology with their solutions to help manage their licensing policies. This can be anything from outright enforcement and anti-piracy measures to tools to measure and monitor compliance with license agreements. The great thing about putting this kind of technology in to a software solution is that it eliminates doubt, misunderstanding and audit.

Today,  there is a wide array of technical solutions that allow software vendors to implement a licensing solution that removes ambiguity and allows flexibility, seemingly solving the primary issues for both the vendor and the customer in a licensing relationship. Companies like mine provide solutions that do that in pretty much every software delivery mode – i.e. online, packaged and embedded. The internet provides additional opportunities to ISVs and their customers, not only for the delivery of the license, but also now for maintaining, measuring, updating, and publishing compliance to both parties. This allows for an entirely open relationship and one that can virtually eliminate the issues faced between vendors and their customers.

Aug 9
2011 

Show Me the Money! Revenue Recognition Best Practices (Part 2)

by David DiMillo

In my last blog entry (Show Me The Money, Part 1) we looked at a number of factors that play into software revenue recognition when a vendor (ISV) introduces electronic license enforcement into their product lines.  Part 1 focused on the principles and mechanics behind giving customers access to the software upon order execution so that the ISV may recognize revenue.   Part 1 concluded by bringing another key element into the revenue recognition equation: time.  Time can affect revenue recognition in a number of ways:

  • We have the time required by the customer to actually get their license keys after the ISVs claims to have given them “access” to the software.
  • We have the software’s ability to run by default without a license key for a temporary amount of time.  Does that count as “access”?
  • We have some ISVs selling perpetual entitlements but wanting or needing to deliver license keys that expire annually.  Does the customer really have access to what they bought?
Jul 11
2011 

Key Traffic Systems Penetrate New Markets by Adding Sentinel HASP SL ‘software-based’ Licensing to its Traffic Management Software

by Kristin Manogue

Key Traffic Systems Ltd., the UK leader in highway and traffic management software, is also a longtime SafeNet customer. With a large and growing user base, KTS needed the ability to offer hardware or software-based licensing and secure downloads of its software to accommodate changing customer needs as well as appeal to new markets.

While Sentinel HASP HL was providing them robust protection against anti-piracy, they needed to add the flexibility that HASP SL offered.  “We wanted to launch our AutoSTRIPE software into the Australian and New Zealand markets and it was not practical to enter those markets with a hard lock key,” say Chris White, software development manager at KTS.

Simultaneously, a significant portion of the company’s current UK customer base was migrating to servers without USB ports, such as virtualized servers and blade, so hardware dongles were no longer an option.

Read how Sentinel HASP SL was implemented alongside HASP HL to solve all KTS’s business challenges.

Jun 28
2011 

Show Me the Money! Revenue Recognition Best Practices (Part 1 of 2)

by David DiMillo

I bet that made your ears perk up a bit, didn’t it?

Your CFO probably has the same type of reaction when the topic of revenue recognition rears its head. After all, it is one of the most critical elements in your business’ machinery.

Customers frequently ask me about the impact license enforcement and license key delivery can have on a company’s ability to recognize revenue.  This indeed can be a touchy subject, so I should start by making a few foundational statements.

I will not suggest how your company should manage revenue recognition nor do I intend claim the revenue recognition practices are acceptable or VSOE compliant.  Your company’s finance team should be the ultimate authority as to what is acceptable for your business.   I encourage any business considering license enforcement to ensure your CFO is will deeply engaged in your license delivery processes.

I will, however, discuss a number of revenue recognition techniques and best practices that I have seen used by multiple successful companies with revenues over a half billion per year. 

Nov 8
2010 

Eliminating the ‘Gotcha Aspect’ of Software Licensing

by David DiMillo

Licensing is a unique experience for every organization, with distinctive business goals and custom business process. More often than not, the challenge to making licensing work is far from a technical problem; it is a business integration or project management problem. To be successful, software publishers need to adopt a top down approach: defining their software licensing vision and then fine-tuning their license enforcement and management processes and technologies. Consensus must be built, processes must be defined and technology must be aligned with these objectives. This is where I come in.  With over 18 years of experience building, managing, and evolving some of the world’s most complex licensing ecosystems the least I can do is share some of what I have learned!

Oct 7
2010 

Software Entitlement Translates into its Own Customer Loyalty Program

by Kristin Manogue

Most of us see ‘software entitlement’ and think it’s just a ‘nice to have’ option.  You know what else is ‘nice to have’ and ‘keep’ – customers.  And we all know retaining customers is much more cost-effective than continually having to acquire them.

Just like a customer loyalty program, software entitlement provides data to better understand your customers.  In turn, allowing you to offer customers targeted, high interest, high value packages that are easy to obtain and consume.

Jun 17
2010 

The Power of the Right Software Licensing & Pricing Models

by Justin Benson

One of the inherent dichotomies for software vendors exploring new pricing models is: Who do you talk to? The common response is “Discuss this with your existing customers – they know best” There’s only one problem with that. Your existing customers have already most likely validated your current licensing processes – via the act of purchasing your software. To put it another way, when they looked at your pricing and licensing models they most likely found them to be agreeable enough (or at least not a big enough impediment) to moving forward.

The risk then as you explore new software licensing and pricing models is that you poll your existing customers only. While they’re an important constituent they should not be the only constituent. You need to look at the potential customers who did not buy your solution. Find out why they decided to go in another direction.