Cloud Licensing Trends, Opportunities and Benefits

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1 Cloud Licensing Trends, Opportunities and Benefits Jake Fox, VP Product Development Insert Your Name Insert Your Title Insert Date

2 Agenda Licensing Trends Cloud & Beyond Cloud Adoption Rates The Opportunity Cloud Licensing vs. Traditional License Enforcement The Benefits of a Cloud-Connected Licensing Experience

3 Cloud

4 Subscription and usage-based licensing

5 Back office automation

6 Business Intelligence

7 Virtualization

8 License follows the user

9 Customer Self Service

10 Market Overview: Importance of Cloud Traditional IT Dominates, but Public Cloud Drives New Growth 91% of 2012 new apps spend (new capability) was on SaaS 34% of replacement apps spend (replacing capability) was on SaaS $1 for every $6 spent on software was for SaaS delivered software $1 for every $5 spent on apps was for SaaS delivered apps 84% of net new commercial apps will be developed specifically for cloud in %+ of companies will source greater than 50% of total IT spend from the Public Cloud by 2016* >80% of Global 2000 will still have >70% of IT onsite in 2016 Source: IDC,

11 Important Characteristics Q: Using a 5 point scale where 5 is very important to your company, and 1 is not at all important, please evaluate how critical the following characteristics of Cloud (Public and Private) are to your firm. They are Cost Efficient They support faster deployment They let users serve themselves They can establish "Stantard Standard Services" Services They support scaling technologies They provide metering They allow flexable migration of workloads 65% 70% 75% 80% 85% 90% Source: IDC CloudTrack Survey, 2012 The three top characteristics buyers use to evaluate a service all revolve around money savings and improved capabilities. Cloud offerings need to be designed to help users save money and gain efficiency 11

12 Software Jake Fox, VP Product Monetization Development in the Cloud Sentinel Cloud vs. Traditional License Enforcement Insert Your Name Insert Your Title Insert Date

13 Parallels On Premise to Cloud On-Premise Copy Protection Product Catalog Orders / Entitlement Licensing Tracking Reporting End-User Admin

14 Parallels On Premise to Cloud On-Premise Cloud Apps Copy Protection Authentication Product Catalog Service Catalog Orders / Entitlement Provisioning, Contract, & Entitlements Licensing Authorization & Compliance Tracking Usage Tracking & Billing Mediation Reporting Monitoring & Reporting End-User Admin End-User Monitoring & Management

15 SafeNet Confidential and Proprietary Traditional licensing in an on-premise environment

16 Traditional license enforcement on-premise Software Vendor Administrator Generates license keys & installs on server Customer Upside Proven method for enforcing usage within the customer environment ERP License Server Client Client Provides customers the tools to stay compliant License servers can generate usage log files Licensing Backoffice Client Challenges Usage Data Reporting License Usage Data Once license keys are generated, the vendor has limited control or insight into what happens at the customer site Usage-based billing Back office tools parse and process customer usage data Usage logs License server within customer environment creates usage log files Collecting, transporting, parsing and aggregating server log files has proven difficult and error prone Usage, users and entitlement are not associated in the licensing system

17 SafeNet Confidential and Proprietary Why not run a traditional license server in the cloud?

18 Traditional license enforcement in the cloud Software Vendor License Server server could run in the cloud, locked to the cloud instance ID Protection enforcement built into vendor application for security ERP Licensing Backoffice License Server Cloud Application User Usage Data Reporting License Usage Data Enforcement User Q: Why didn t SafeNet choose this model for the cloud? A: There are many inherent problems

19 Traditional license enforcement in the cloud Software Vendor License server locked to cloud instance ERP License Server Licensing Backoffice Vendor s Cloud Application User Usage Data Reporting License server log files License Usage Data Architectural Enforcement Problems Performance Problems Traditional license servers need a high bandwidth, Functional low latency Problems network. An effective license manager Traditional license servers are designed for for the cloud needs to be designed for throttling. protection against cracking, debugging, and Cloud instance IDs can change frequently, reverse When aggregating engineering usage, a true cloud service breaking the license server locking must scale to support a much higher volume of These usage Traditional across measures license multiple are servers unnecessary end are customers. not architected in the cloud for and degrade multi-tenancy performance and will have trouble managing multiple end-customers Server log files must be collected, parsed and aggregated. Difficult to distinguish usage across end customers in this model. User

20 Sentinel Cloud Built as a cloud service for the cloud Software Vendor ERP EMS Provisioning Contract Catalog Database Cloud Application SCC Resource Mgr Policy Hub Usage/Reporting Database Cloud Application How is Sentinel Cloud different? No license servers to manage Cloud Application No license keys to manage No license server rehosting Designed to support distributed systems Designed for latent networks Cloud Application Designed to scale Designed for fault tolerance Usage data collection, aggregation and reporting built in Eventually consistent architecture

21 Sentinel Cloud Workflow 2 Order automatically flows to EMS Software Vendor ERP End customer notified of order revenue recognition Entitlement automatically provisioned to Sentinel Cloud Vendor s Cloud Cloud EMS SCC 1 Order entered into the vendor s ERP system Provision Contract Catalog Database Resource Mgr Policy Hub Usage Database 4 End-customer usage aggregated and stored against the entitlement in EMS 5 Notifications EMS can notify the vendor and the customer per vendordefined rules like entitlement expiration Customer 3 Vendor s application used on premise or as pure cloud Customer s entitlement checked through the cloud and updated periodically Vendor Application Usage automatically collected and transferred periodically

22 Ericsson Usage data via Sentinel Cloud 1 EMS SCC Provision Contract Catalog Database Resource Mgr Policy Hub Usage Database EMS db 3 Billing done on actual usage in both pre-pay and post-pay models: Product used Features used Time used Application load Actual application usage including load periodically passed to Sentinel Cloud and local license rights refreshed Application instance Application instance Customer Environment

23 Sentinel Cloud Topology SCS Run-Time SCC API to enable feature level access and usage tracking Local Authorization Decisions (cache-able License Models) Caches Usage Data Client Machines Software Vendor Application Network Service Software Vendor Application Cloud License Manager Global Decisions (strict licensing) Processes and aggregates usage records Client SCS API SCS Run- Time SCS Run- Time Server SCS API EMS Occasionally Disconnected Always Connected Catalog & Customer Management Provisioning (and management) of contract license terms Reporting / BI Integration with backoffice via WS EMS Define Entitle SCC License Activate / Generate Usage Report Aggregate

24 Operational Automation Cost Control Customer Experience Product Catalog Versatility Business Model Flexibility Product Catalog Agility IP Protection Piracy Prevention Compliance Management Business Intelligence Billing Support Customer Transparency

25 Leveraging Software Monetization Techniques to Create a Cloud-like Customer Experience

26 Delivering a Cloud Competitive User Experience Consumption-based Business Models License Users, Not Machines Real-time interactions Self-service Confidence Managing Software within Virtual Environments

27 1. Usage-based Pricing Models WHY Creates a direct correlation between price and value derived. HOW Usage tracking and reporting capabilities.

28 2. User-based Licensing WHY Users need their rights to travel with them from machine to machine, across multiple locations. HOW Eliminate machine locking and associate licenses to users an control access at login as opposed to runtime.

29 3. Self-service & Touch-less Support WHY Faster resolutions, reduced costs, improved end-user experience. HOW Automatically provision, Grace, Renew Client Machines Client App

30 4. Real-Time Notifications WHY Increase renewals, eliminate overage frustrations, improve customer relationships. HOW Track and report on Count. Measure usage against defined entitlements. Proactively alert users. You are over your limit for September proceed anyway for an additional charge? Your subscription has expired renew for 30 more days? You only have one available seat left for your organization. Would you like to order more now?

31 5. Fear the Virtual Environment No More! WHY Virtualization has many benefits for Enterprise organizations and are here to stay. You must be confident in your ability to deploy and manage your software into virtual environments. HOW Leverage a cloud-based licensing and entitlement management platform to eliminate node-locking and rest assured that your software is safe from overuse in virtual environments. While ensuring a seamless end user experience.

32 Additional ISV Benefits of Cloud-Connected Licensing Get Smarter Exploit detailed feature- and product-level usage tracking information to drive product and business decision-making processes. Reduce IT Dependencies Eliminate the need to install and manage license servers locally to remove IT costs and shorten implementation timelines.

33 Not all Software Monetization Platforms are created equal what specifically to look for

34 Our Cloud Solution: Sentinel Cloud Services Sentinel Cloud Services is a feature-based user provisioning, authorization, metering, and management solution for SaaS and on premise deployments. Define Adapt Measure Control Provision DEFINE service catalog and pricing models at the featurelevel to boost product versatility and business agility PROVISION service agreements instantly to improve operational efficiency and minimize manual errors CONTROL user authorization to enable service agreement compliance MEASURE customer usage for business intelligence and billing support to simplify operations and improve strategic decision-making capabilities ADAPT service offerings and pricing models on the fly without the involvement of engineering to Instantly embrace evolving market demands

35 Sentinel Cloud SafeNet has the newest, and most comprehensive, support for cloud licensing use cases and business models. FREE TRIAL Getting up and running with Sentinel Cloud took one developer two days one day to be functional, an additional day to polish the implementation

36 Ultimas tendencias en Soluciones para la Monetización de Software Mauricio Hernandez Software Monetization 36

37 La compañía de Protección Datos Éxito global: Más de 25,000 clientes en más de 100 países Empleados: 1,400 en 27 países Ventas: ~$330 millones USD Pericia: > 600 Ingenieros criptográficos Experiencia: desde 1983, mas 30 Años!!!

38 Líder probado SafeNet Protege: El dinero con mayor movimiento en el mundo 80% de transferencias electrónicas bancarias - $1 Trillón por día El control de acceso a la más sensible información corporativa, más de 35 millones de identidades protegidas a través de tokens, Smart cards y dispositivos móviles. El mayor número de identidades digitales, la mayoría de las identidades de PKI para los gobiernos y las compañías Fortune-100 El Software con mayor valor en el mundo Monetizado, 100 millones de llaves que protegen aplicaciones On-premise, en la Nube e Hibridas

39 Soluciones Sentinel de Monetización Sentinel LDK La solución de seguridad de licencia de software revolucionaria, basada en Hardware y Software Sentinel RMS Kit de herramientas flexible para concesión de licencias de software de empresas Sentinel EMS Solución de gestión de derechos y concesión de licencias de software de empresa Sentinel Cloud Services Empaquetado, compras, medición y gestión para software ofrecido como servicio Servicios profesionales Servicios de implementación y asesoría de concesión de licencias de software

40 Nuestra Visión; Habilitar y facilitar la monetización de su software Dispositivo Canal de venta Cualquier forma de entrega Cualquier licenciamiento Desktop OEM Hibrido Nube Renta Suscripcion Pago por uso

41 La Huella Sentinel Con mas de 25,000 clientes a nivel mundial y con productos certificados por los estándares mas altos en seguridad

42 SafeNet, Interactiva; Acceso inmediato a las mejores prácticas y desafíos que surgen con el empaquetado de software, fijación de precio, cumplimiento, ejecución y gestión. Un foro que reúne a los proveedores de software, analistas del sector, consultores de concesión de licencias y proveedores de tecnología. LicensingLive! for Bloggers LicensingLive! for (#swlicensing) Linking In to LicensingLive! LicensingLive! for YouTubers! LicensingLive! Webcasts

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