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Incremental Revenue From Innovative Software License Models

Drive incremental revenue from innovative software license models

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In this demonstration, Jim Berthold, Principal Solutions Engineer with Flexera Software discusses how software vendors and device manufacturers can drive incremental revenue from innovative software licensing models with FlexNet Licensing and FlexNet Operations. He discusses how vendors can drive between 10-200% more revenue and successfully expand into new markets by aligning pricing and licensing with customer value. He demonstrates how subscription, term and usage-based license models have helped many vendors capture incremental revenue, expand into new markets and reduce sales time and cost.

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Page 1: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 1

Incremental Revenue From Innovative

Software License Models

Page 2: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 2

New & Updated License Models

• Incremental Revenue

• Market Expansion

• Reduced Sales Time & Cost

Time, Cost & Operational Disruption

• Inflexible Systems

• Process Complexity

• Core Competency

Op

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Incremental Revenue From Innovative Software

License Models

Page 3: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 3

Challenge Details

Business

System

Business Processes

Customer Software

w/ Licensing Order

New Models & Changes To Existing Models

Update & Integrate

Business Systems

Update Business

Processes

Update

Products

Test & Release

Updates

Purpose-Built

Time Consuming, Expensive & Disruptive

Page 4: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 4

Challenge Details Continued

Core Competency Gap

• Cross-Functional

Knowledge

• Systemic Impact

• Continuous Balance

• Future Proofing

Page 5: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 5

Flexera Software’s Solution

Application w/

Electronic Licensing

Entitlement

Management

SW Monetization

Model

• License Models

• License Metrics

• Product Structure

• Compliance Policy

• License Activation

• Variable Enforcement

• Update Management

• Usage Capture …

• Self Serve Fulfillment

• Software Download

• Installed Base

• Reporting …

Configure vs. Fixed New License Model Support

Page 6: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 6

Why Flexera Software?

• People:

– Industry Leading

Expertise

• Process:

– Reliable Success

Framework

• Technology:

– Configurable Electronic

Licensing & IT System

– Standards-Based

Integration

IT Business Systems

Business Processes

Electronic Licensing

Page 7: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 7

Page 8: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 8

Innovative Packaging and Flexible License Models Demo Flow

• Setup: – “Let’s assume that you are software company ABC Corp.. You have

historically sold your products using a perpetual license model.

Customers find great value in your products but often complain about

the upfront cost.

– Your marketing department has determined that you could increase your

overall revenues by moving to an annual subscription model. This would

also be a welcome change to your customers, since the up-front costs

would be lower.

– Now, let’s see what happens when using Flexera Software’s Entitlement

Management system. For this scenario, we will assume an order has

already been placed for product ABC using a perpetual license model.

Page 9: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 9

Order Notification Email

Page 10: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 10

Self-Service Portal provides Order History

Page 11: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 11

Configuring the sample application

Page 12: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 12

Using the Activation code to activate a license

Page 13: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 13

Activation results in Permanent licenses

Page 14: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 14

Create the new license model

Page 15: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 15

Simply copy the existing catalog item

Page 16: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 16

Assign the Subscription-based license model

Page 17: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 17

Create a New Entitlement

Page 18: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 18

Self-Service Portal provides Order History

Page 19: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 19

Subscription Entitlement Details

Page 20: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 20

Activate product using new Activation ID

Page 21: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 21

Activation results in expiring licenses

Page 22: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 22

Innovative Packaging and Flexible License Models

• Recap:

– Many companies utilize rigid license models that are very difficult to

change

– That’s a challenge because the need to change these license models

quickly is a fact of today’s market

– Flexera Software addresses this challenge by giving you the tools to

enable your company to quickly develop and deploy new license models

– The only alternative to a dynamic licensing system is to have hard-coded

licensing which requires engineering involvement for every change or to

remove licensing entirely which is unacceptable to most companies

• Demonstration Summary

– In the demonstration we showed a product with a perpetual license

– We created a new SKU (Catalog Item) with a subscription license model

and then activated an application with the new model

Page 23: Drive incremental revenue from innovative software license models

© 2014 Flexera Software LLC. All rights reserved. | Company Confidential 23