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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
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