Category Archives

117 Posts for Software Monetization

May 29
2012 

INEA Achieves Global Licensing Efficiency in Virtualized Environments

INEA is the leading company in the field of industrial automation, process computer control and manufacturing informatics in Slovenia. However, as the company grew globally, they discovered that their homegrown licensing system just couldn’t cut it.

The more that they grew, the more they realized that they needed a new way to support their licensing.  INEA began to look into licensing in virtualized environments, and found that it was the best solution for them. Not only would virtualized environments allow them to easily support their global clients licensing needs, but it would also allow them to remotely update licenses all over their world. In addition, licensing in virtualized environments cut costs, eliminating the need to purchase physical machines.

INEA knew that the move into virtualized environments would bring about additional security threats, and looked for a solution that would protect their high-value software. “After evaluating several vendors, we found SafeNet to have the most reliable solution within virtualized environments, while possessing the greatest number of features.”

Read more about INEA’s move into virtualized environments, and how SafeNet Sentinel HASP SL was there every step of the way.

May 10
2012 

There’s No Debate: ISVs Need to Consider Pricing, Virtualization Options

If you live in US or follow the news about US, you know that we are in middle of a political election season. You can’t go a week without watching the back and forth between Presidential candidates over topics that range from relevant to mundane, game-changing to ridiculous. One of the more serious topics (and probably at the top of the voters’ mind) is job creation, or the lack thereof. The US economy is growing but job growth is not keeping pace. At the heart of the issue is productivity: when the chips were down during the peak of recession, most companies learned to be very efficient. That is, they learned how to get more out of the resources they have. One of those efficiencies is increasing use of IT to improve productivity of employees. You could say job growth has given way to use of more software systems and tools.

May 9
2012 

SafeNet Delivers Industry’s First Licensing and Monetization Solution for Hybrid On-Premise and Cloud-based Software Portfolios

Earlier today, SafeNet issued the following press release:

Sentinel® Products and Services Provide Developers with an Easy, Flexible Migration Path for Transitioning from On-Premise-Only to Hybrid or SaaS-Only Delivery Models

News Summary:

  • SafeNet’s® technology delivers the industry’s only licensing and software monetization solutions with a single, common operational platform for on-premise ISVs (independent software vendors), software-as-a-service (SaaS) vendors, and developers with hybrid portfolios.
  • SafeNet’s Sentinel® technology provides a dynamic “live” licensing back-end entitlement management system that accurately maintains and reports licensing states, empowering ISVs to maintain better control over usage and deliver richer customer experiences.
Apr 26
2012 

LicensingLive London 2012: From On-Premise into the Cloud

Why choose either cloud-based OR on-premise delivery for your software, when you can do both?
by Ariella Shoham, EMEA SRM FIeld Marketing Manager

Last month, we got together again for LicensingLive London, our annual “cloud gathering” at the Royal Institute of Great Britain in London. The surroundings – the RIGB Library, surrounded by hundreds (if not thousands) of scientific publications and books was the ideal setting for discussing some of the hottest topics in the world of Software as a Service.

Apr 24
2012 

How Sage Software Cured Their Acquisition Headache

Acquisitions are good, right? Sure they help your company grow, but what other baggage do they bring? Obviously, you will gladly expand your customer base and available resources. But what are you going to do about an inherited homegrown licensing system that is completely incompatible with yours? Read how one company expanded, without the additional headache of managing disparate licensing systems.

Sage is an international business software, services and support company working primarily with small and medium sized businesses. Throughout the years, acquiring other companies has allowed Sage to continue to expand globally. However, these acquisitions also led to multiple homegrown licensing systems that did not work cohesively.

Apr 13
2012 

Exploring the Four Aspects of a Comprehensive Software Monetization Strategy

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).

Apr 10
2012 

Putting Customers First: Why ISVs Need Flexible Pricing Models

I have spent much of my last seven years promoting software licensing and monetization. Of course, market dynamics have changed over those years and our solutions and thinking has evolved accordingly. More recently, with the launch of Sentinel Cloud in 2011, we have been very focused on encouraging our customers to start aggressively adopting usage-based models – primarily because their customers – end users – want such pricing schemes.

So, you can probably imagine my reaction as the following story unfolded….

Mar 28
2012 

Do software vendors intentionally allow ways to bypass their enforcement mechanism?

This is a juicy question was posed on Quora (http://b.qr.ae/HmF392). I was intrigued by a couple of the responses and added my own.  Here is my view…

The answer is yes but mostly no. Confused?

Here’s how it usually works…

First, software vendors separate compliance strategy from piracy prevention because they are inherently different beasts. This can be done by placing their customers along a compliance continuum.  On the left you have customers who go to lengths to be compliant and will gladly pay for software they use regardless of whether the software has license enforcement or not. On the right you have users who intentionally use pirated software and wouldn’t pay for it if they couldn’t steal it. The vendor’s focus is clearly on the left end of the scale since this offers the largest revenue opportunity.  The right is often nothing more than noise.

When vendors introduce license enforcement, the most common philosophy (by far) is to consider the enforcement a tool that will help keep their honest customers doing the right thing and to facilitate creative licensing models. All software license enforcement tools have some level of vulnerability. However, the software market usually considers the higher-end commercial enforcement products more than adequate to cover ~90%+ of their continuum, working from left to right.

That 10% is essentially the topic of the original question posed in this post. The software vendor asks itself if it really cares about investing additional time and resources making the enforcement more air-tight to further prevent piracy by users who would never pay them.

All said, there is always a point of diminishing return and vendors choose to not care a whole lot about usage where they’d never see any revenue.

I agree with the premise that many companies would rather see users stealing their software than paying a competitor. However, applying the notion of the compliance continuum, the real money is typically on the left end of the scale with companies that wouldn’t use pirated software in the first place so the revenue in question is likely a fudge factor at best.

What do you think?

Mar 23
2012 

The Top Five Barriers to Software Monetization Success

We recently ran an article on our software monetization channel that discussed the common barriers that prevent ISVs from building an effective monetization strategy.    Are you looking to improve or even define your software monetization plan? Here are five barriers that you should prepare for:

  1. Control
    Control is twofold. Preventing the unauthorized use and distribution of your application protects revenue by ensuring all use of your application is paid for. Equally important is your ability to protect the source code of your application from being exposed to accidental or malicious parties alike in order to prevent code manipulation and reverse engineering. Keeping the product usable and efficient, while providing maximum protection of your valuable IP, can become a big problem for ISV’s if not considered early in the development and software licensing process.