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Connected Licensing

Jake Fox –Product Development and Management

Omkar Munipalle – Strategy and Business Development

Changing Buyers Landscape

Audience

• 60% research done prior to contact

• Far more enlightened prospects – Sharing Economy

Product Familiarity

• Very high

• Value based engagement with sales

Brand Perception

• High Expectation

• Instant Gratification

Buying process

• 95+% of all process initiated on the web

• 55+% of buying process complete before 1st meeting

Website

Other Media

Inside Sales

Outside Sales

Fullfillment

Buying Process

Website

Social Media

Other Media

Inside Sales

Outside Sales

Fullfillment

Buying Process

Shift to

Self-Service

10 Years Ago:

Seller in Control Now Buyer in

Control

…And the rise of the

individual buyer…

Enterprise Buying Process - Shifting control

Redefined Customer Engagement

Freemium/

Free Trial

Basic

Advanced

Bundles

Enterprise

Buyer

Publisher

Marketing

Operations

Marketing

Operations

Marketing

Operations

Inside Sales

Sales

Sales

Cross functional

teams

Individual

user

Individual

user

BU users

Individual

user

BU users

IT

BU users Procurement

Procurement IT

Redefined Go To Market – Packaging

5

Volume

Price

Advanced

Standard Package

Freemium

Enterprise

Featu

res

Incremental Revenue!

Build Once – Deliver Many

Pricing Models

Subscription

Consumption Based

Perpetual

Pre-paid

with

Overage

Feature

Based

Hybrid

Razor Blade

Model

One and

Done

Licensing has also evolved

Evolving Software Monetization Trends

Consumption-based business models: Flexible pricing models

License users, not machines: Any time, anywhere access

Real-time interactions

Self-service/No license keys to manage

Evolved End User

Expectations:

Evolving Software Monetization Trends

Ability to roll out multiple business models

Enable incremental revenue capture opportunities

Confidence managing software within virtual environments

Reduced dependencies on IT for software management

Access to detailed product and feature usage data

Centralized management of on premise, cloud, and hybrid product portfolios

Evolved Software Vendor Requirements:

Connected Licensing – Key Drivers

Data Driven

Real Time

Key Drivers

User Centric

Data Driven

Collects feature-level usage information

Reports the information in a user-friendly dashboard format

Provides tool-agnostic usage information

What does it mean to you?

• Helps you make smarter investment decisions

• Allows you to introduce new business models

(i.e. pre pay and post pay pricing models)

• Creates upsell opportunities that increase your

bottom line

for advanced analytical insight

Insights from Usage

Real Time

Lets you renew, update, and make changes to your licenses instantly

Lets the end user buy more features and licenses and have their request

take effect immediately

Provides tool-agnostic usage information for

What does it mean to you?

• Full control over your licenses

• Increased customer satisfaction

• Decrease in support and shipment

advanced analytical insight

User Centric

Ties licenses to end users - not to machines

Lets you authorize access to your software

from any machine

What does it mean to you?

• Anytime, anywhere access

• Enhanced licensing experience

in virtualized environments

• Improved customer experience

• No license keys to manage

Connected

Licensing

Sentinel Cloud Licensing is a feature-based user provisioning, authorization,

metering and management solution for publishers of both on premise software

and cloud delivered services

• License provisioning

• License Updates

• Usage/Consumption

• H/W & S/W control

Client Machines

Connected Licensing - Sentinel Cloud

• Global License

• Scaleable

• Time Slicing

• Usage collection

Pure Cloud

Provider of large

file transfer services

for media companies

Deliver the service

via multiple Cloud

platforms

Track usage based

on bandwidth

consumed

Charge customers

post-paid base on

consumption

Hybrid: Cloud

& On-Premise

Provider of financial

accounting software

and services

Offer a hybrid model

with a subscription

price for S/W with the

ability to request

additional resources in

the cloud

Track and charge for

cloud usage based on

concurrent processes

On-Premise

Medical Devices

generating revenue

through S/W

Employ pay per use

model to enable and

track different feature

utilization

“Ability to Add and

Subtract features

based on the surgeon

working on device

Real World Examples

Thank you!

An evolution in licensing

Sentinel Cloud Order Workflow

Customer order is

entered into the

software vendor’s ERP

1 • Order flows to

Sentinel EMS

• Customer notified

• Entitlement

automatically

provisioned in

Sentinel Cloud

2

Customer usage aggregated

and stored against the

entitlement in EMS

4 • Entitlement checked through

the cloud and application is

used on premise.

3

Software vendor can

utilize the usage data

for billing purposes

5

Notifications – EMS can notify the vendor

and the customer per vendor-defined

rules like entitlement expiration

6

Always / Occasionally Connected

ISV

End Customer

Isolated Networks – Standalone

ISV

End Customer

Isolated Networks – Connected License

Server

ISV

End Customer

Isolated Networks – License Server

ISV

End Customer