License Subscriptions - A Cash Machine for your Software

A Cash Machinefor Your Software

Ruediger Kuegler | VP Salesruediger.kuegler@wibu.com

Stefan Bamberg | Senior Key Account Manager stefan.bamberg@wibu.com

A Business View

The User’s / ISV’s Experience

The Developer’s Perspective

Speaker 3

Basic Foundations ofSubscription Models

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License Subscription

The user leases the software The right to use the software ends when the subscription expires In technical terms

Time-limited license with Expiration Time

Examples: Anti-virus software

Office applications like Office 365

Game portals like Sony Entertainment Network

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Maintenance Subscription

The user purchases the software The user signs up for a maintenance contract The right to use the software does not expire The right to receive updates expires with the end of the maintenance In technical terms:

Perpetual license with a Maintenance Period

Example: Microsoft Software Assurance

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Paying by Installments

The user pays for the software in installments The user get the timely unlimited right to use the software after the last

payment In technical terms

Time-limited license with Expiration Time until last payment,

Converted into a perpetual license after last payment

Example: Selling software in Latin America

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Pricing of Subscription Models

Purchasing software only Full price 100%

Payment by installments 1 to 2 years, 5% - 20% annual interest rate

Price of the update 50% - 100%, depending on the last purchase

Maintenance Subscription Annual maintenance fee 12% - 25% of license fee

License Subscription Monthly fees 2% - 5% of license fee

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Software Revenues per Customer

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0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 600%

Purchase

Payment by Installments

Purchase / Updates

Purchase / Maintenance Subscription

Business Analysis – Example 1

New customers per year 100

Price of the software application (license fee) $5,000.00

Selling software update 50% of the customers purchase an update

Update priced at 50% of the software

Purchase after 3 years

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Business Analysis – Example 2

Maintenance Subscription 75% of the customers sign up for a maintenance contract

Maintenance fee is priced at 20% of license fee

Churn rate: 10% per year

License Subscription Price: 4% of license fee

25% more customers thanks to an enticing offer

Churn rate: 5% per year

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Annual Software Revenues

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1 2 3 4 5$0.00 Mio

$0.25 Mio

$0.50 Mio

$0.75 Mio

$1.00 Mio

$1.25 Mio

$1.50 Mio

Purchase / Updates

Purchase / Maintenance Subcription

Conclusions of the Business Analysis

Selling maintenance contracts via subscriptions is risk-free A license subscription model generates more revenues in the long term,

but represents a risk in the early years Introducing a new license model attracts more customers

For a successful outcome, the selection of the right subscription price is essential: its relation to the full software price and certain psychological barriers at $50 / $100 / $200 / $500 come into play

It is recommended to proceed in stages, i.e. for individual products or markets

The math and the business analysis are different for each software!

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Workflow

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CodeMeter User

Signing up for a Subscription

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License (next billing date + overtime)

Ticket + Context

TicketABCDE-FGHIJ-KLMNO-PQRST-UVWXY

Subscription Agreement (Original PurchaseID)

1e-commerce

Software

CodeMeter User

Next Billing - Renewal of the License

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Updated Licenses (next billing date + overtime)

Ticket + Current License

Renewal (Original PurchaseID + PurchaseID)

1e-commerce

Software

The User’s Experience

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User’s Experience

Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code

Activation of the subscription license Enter the ticket

Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires

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User’s Experience

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Shopping Cart

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Confirm Subscription

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Entering Credit Card Credentials

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Order Confirmation with Activation Code (Ticket)

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Information about Subscription Cancelation

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User’s Experience

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Activate NowActivate Now

Software Activation

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LXCYX ZD5FN BRZZSQMGTTCDVB8- - - -

Please enter your Activation Key:

License successfully activated!

User’s Experience

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Automatic Billing during the Subscription 1

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User’s Experience

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Automatic Renewal of a License

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Search for License Updates…

License successfully renewed!

User’s Experience

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Credit Card Expiration Notification

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Updating Credit Card Credentials

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Successful Update

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The ISV’s Experience

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ISV’s Experience

e-commerce platform (i.e. Cleverbridge) List of subscriptions

CodeMeter License Central Orders of one ticket

Licenses and Updates of a ticket

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ISV’s Experience

Licenses and Updates of a ticket

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List of Subscriptions on the E-Commerce Platform

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ISV’s Experience

Licenses and updates of a ticket

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Orders related to a Ticket

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Licenses / Updates in one Ticket

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The Software Developer’sPerspective

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Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License

Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation

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Configuration of an item in the E-Commerce Platform 1

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Configuration of an item in the E-Commerce Platform 2

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Configuration of an item in the CodeMeter License Central

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Connector: Data-Mapping

// CMLC orderID << CB PURCHASE_ID$orderID = readParam("PURCHASE_ID");

// CMLC customerID << CB PURCHASE_ID$customerID = readParam("PURCHASE_ID");

// CMLC comment << CB EMAIL and PURCHASE_ID$comment = readParam("EMAIL")."-".readParam("PURCHASE_ID");

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Connector: Check if Initial Purchase

$originalOrderId = "";$cbOriginalOrderId = getOriginalPurchaseId()if ($cbOriginalOrderId != $orderId) // initial purchase{

$originalOrderId = $cbOriginalOrderId;$customerID = $cbOriginalOrderId;

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Connector: Set Expiration Date

// Set param for Expiration Time$params[] = array (

"name" => "SubscriptionEndDate","value" => addDays(getNextBillingDate() + overTime),

// Add new item to item array$items[] = array (

"itemIdentification" => $itemID,"quantity" => $quantity,"param" =>

$params,);

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Connector: Import Order

// Create order$order = array(

"orderIdentification" => $orderID,"origOrderIdentification" => $originalOrderId,"customerIdentification" => $customerID,"comment" => $comment,"product" => $items,

// Calling webservice$ticket = doOrder($LC_Username, $LC_Password, $order);

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Software Workflow I

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Is the license available?

Is license in overtime? Enter the ticketStart activation

Renewal with an existing ticket Start software Store ticket Error

Yes No

Yes No ErrorOK

Start software…

Software Workflow II

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Renewal with an existing ticket

Start software

Has the license expired?

WarningError

Start software

Yes No

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Call of the Gateways 1

GetRemoteContextBuffer(serial, firmCode, out context);

GetLicenseUpdate(ticket, firmCode, context, ticketLicenseIds, codeMeterActId, Activate, urlServer, out update);

SetRemoteUpdateBuffer(update.Result.updateContext, firmCode, serial, out newSerial);

GetRemoteContextBuffer(newSerial, firmCode, out context);

ConfirmLicenseUpdate(context, urlServer, out confirm);

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Call of the Gateways 2 (Initial Creation of a CmContainer)

// if we don‘t have a CmContainer, create a new one

GetLicenseInformationFile(firmCode, codeMeterActId, urlServer, out lif);

RegisterCmActContainerBuffer(lif.Result.licenseInformationFile, firmCode, codeMeterActId, out serial);

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WebDepot

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WebDepot Configuration

// "all" = shows all licenses// "latest" = shows only latest (newest) license per ticketIddefine ("UI_CONFIG_SHOW_MODE", "latest");

// "selected" = takes selected licenses only// "all" = takes all licensesdefine ("ACTIVATION_MODE", "all");define ("DEACTIVATION_MODE", "all");define ("REACTIVATION_MODE", "all");

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Deutschland: +49-721-931720

USA: +1-425-7756900

China: +86-21-55661790

http://www.wibu.com

info@wibu.com

Germany: +49-721-931720

USA: +1-425-7756900

China: +86-21-55661790

http://www.wibu.com

info@wibu.com

Thank you for your active participation!

01.06.2016

License Subscriptions - A Cash Machine for your Software

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Subscriptions 2010 Sample Pages

When Beauty · 2020-05-31 · Cable/Internet Insurance(Business) Subscriptions(Business) Equipment Computer Printer Ink/Paper Telephone License/Fees Training/Continued Education Retirement

· Gumasta License Fees Miscellaneous Expenses Bank Charges Provision For Doubtful Debts Credit Bureau Charges AMC Charges ... Net increase (decrease)in cash & cash equivalents(A+B+C)

MOTHER'S DAY FLOWER SUBSCRIPTIONS€¦ · MOTHER'S DAY FLOWER SUBSCRIPTIONS. Created Date: 20210202135711Z

DreamSpark Institutional Subscriptions

LICENSE TO CASH IN? - Weed Online

SUBSCRIPTIONS: TUESDAY

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