customer centric view of best practices in software monetization
TRANSCRIPT
Page 1WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Oliver WinzenriedCEO
Customer centric view of best practices in software monetization
Welcome to our Webinar
Page 2WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Webinar Agenda
Introduction of speakers Avni Rambhia, Senior Industry Analyst, Frost&Sullivan Ruediger Kuegler, Security Expert, Wibu-Systems Oliver Winzenried, Founder and CEO, Wibu-Systems
Intro Wibu-Systems by Oliver Winzenried Solution Demonstration by Ruediger Kuegler F&S requirements analysis and conclusions Some use cases Q & A: Questions and Answers
Page 3WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
1989... 2012: > 20 years WIBU-SYSTEMS
Founded 1989 by Oliver Winzenriedand Marcellus Buchheit
Privately held independent company Headquarters at Karlsruhe, Germany Subsidiaries in: USA, Netherlands, Belgium,
China, Spain, Portugal, United Kingdom Focus on Protection, Licensing and Security
Page 5WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Software Monetization: Maximizing revenues
Help customers to sell more.
Due to less product piracy increased target user groups flexible licensing
Page 6WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Challenges
PiracyReduction
IPProtection
ProductionData
Features on Demand
AccessControl
IntegrityProtection
Page 7WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
The solution: CodeMeter Technology
CF-CardCmCard/CF
SD-CardCmCard/SD
USBCmStick/C Basic
µSD-CardCmCard/µSD
USBCmStick
Link to the data sheets:http://www.wibu.com/en/hardwarebasierter-kopierschutz.html
InternCmCard/I
Express-CardCmCard/E
ActivationCmActLicense
PC-CardCmCard
ChipCmASIC
Page 8WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Thousands of Customers, Millions of Dongles
Page 1Wibu-Systems 2012
CodeMeter
Product Overview
Rüdiger KüglerVP Sales | Security Expert
Page 2Wibu-Systems 2012
Who takes part?
Vendor
• Software protection• Software licensing• Process integration
User
• Uses protected andlicensed software
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User gets his ticketwith order confirmationdelivery notice
User starts softwareand activates it
Software is ready to use Activation via customer
portal Offline license file transfer
View of the User
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CodeMeter for the Vendor
Technology(CmDongle /
CmActLicenses)
Software Integration
Backoffice Integration
AxProtectorIxProtector
CodeMeterLicense Central
Dongles:CmDongle (USB, SD,
CF, µSD, …)
Softlicenses:CodeMeter SmartBind®
License Models:Single User, Trial,
Network, ….
Page 15Wibu-Systems 2012
Realizing license models
Single User License
Floating Network Licenses
Software Renting
Pay-Per-Use
Modular Licensing
Trial Licenses
Downgrade License
Software Assurance
High Availability Licenses
…
Text
License Quantity
Expiration Time
Usage Period
Unit Counter
Feature Map
Product Code
Maintainance Period
Customer Own License Information
…
Licen
se M
odels
Prod
uct It
em O
ption
s
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Secure license storage
CmActLicense State-Of-The-Art Binding to
hardware fingerprint of PC Dynamic fingerprint Tolerance level Trial license mode Extendable
CmDongle Hardware with secure Smartcard chip Mobile usage
CmDongle
Software
CmActLicense
CodeMeter License Server
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SmartBind®: Generation of Binding
HD ID Mac 2
CPU type CPU ID TPM IDMac
1 …
HD ID CPU type CPU IDMac
1 …
HD ID CPU type CPU IDMac
1 … Redudancy Bits
Fingerprint Inventory List Redudancy Bits
Catalogue
Available Properties
Property Vector
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Original Property VectorHD ID CPU type CPU ID …Mac
1
SmartBind®: Check of Binding (== OK)
HD ID Mac 2
CPU type CPU ID TPM IDMac
1 …
HD ID CPU type CPU IDMac
2 …
HD ID CPU type CPU ID …
Fingerprint
Catalogue
Current Available Properties
Reconstructed Property Vector
Inventory List
Redundancy Bits
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Original Property VectorHD ID CPU type CPU IDMac
1 …
SmartBind®: Check of Binding (!= OK)
HD ID Mac 2
CPU type CPU ID TPM IDMac
1 …
HD ID Mac 2 …
HD ID …
Catalogue
Inventory List
Redundancy BitsRemaining Gap
CPU type
CPU type
Different CPU ID
Current Available Properties
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Integration into the Software
Automatic Protection AxProtector Windows 32-bit / 64-bit, Mac OS X, Linux .NET
Assemblies, Java J2SE and J2EE Software Protection API IxProtector Encryption of code parts Automatic implementation of cryptographic challenges
CodeMeter Core API Additional functionality (Online Activation)
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Application with simple API calls
.Net (and Java) code can be disassembled very easily
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AxProtector/IxProtector .Net
Compiled application Release version
Header
Code
Header
Stub Code(without Intellectual
Properties)
AxEngine(Security Engine)
Encryped Code(original Code with
Intellectual Properties)
Ax/IxProtector
Definitionof licenses
and modules
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Ticket /Fingerprint
4
Use
r
Online Activation ServerVe
ndor
Ticket3
License5
Ticket2
SKU1
Online ActivationServer
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Backoffice Integration
BusinessLogic
User Interface
License CentralERP
CRM
Webdepot
Gateway
Connector eCommerce(Digital River)
CRM(Sales Force)
ActivationWizard
Browser
Connector
Webserverin DMZ
C
C
Database
InhouseApplication
G
C
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Activation via Internet (Online)
Vendor UserSOAP (XML), JSON,HTTP Post
Ticket +Fingerprint
License file
Receipt
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A Note to the Analyst
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Best Practices In Software Monetization – A Customer Perspective
Avni Rambhia, Industry ManagerDigital Media Group
December 2012
2
Lecture Capture & Video Webcasting
Video Enabled
Consumer Devices
Broadcast & Cinematography Cameras
Encoding & Transcoding
Acquisition DeliveryMiddleware and WorkflowEnterprise
Media and Entertainment
Encoding & Transcoding
Digital Asset Management & Enterprise Content
Management
Media Asset Management
Video & Ad Insertion Servers
Nonlinear Editing
IRDs
Online Video & Web Analytics
Multi-Platform Delivery &
CDNs
Multi-Platform Delivery &
CDNs
Content Protection, Entitlement & Rights Management
STORAGE
STORAGE
Marketing AutomationMarketing Process Optimization
Dynamic Publishing
Animation Software
Animation & CAE Software
3D TechnologiesVideo
Switchers
IP Video Network Management
Online Video Platforms & Analytics
Enterprise Search
Pay TV Platforms
Online Video Platforms
Digital Signage
Content Protection, Entitlement & Rights Management
Broadcast Scheduling
Systems
Covering The Digital Media Value Chain
Source: Frost & Sullivan analysis.
3
Security
Entitlement Management
Monetization = Entitlement Management + Piracy Prevention
Entitlement Management is Necessary
• Define software SKUs, define and enforce licensing policies• Back-office functions: license generation, tracking, transaction management and more• Usability functions: transferring & upgrading licenses, auditing usage and more• EM is the basic foundation upon which LM is built
Security is Hard, But Another Side of the Same Coin
• Rich EM routines are meaningless if they can be trivially bypassed or circumvented• Enforcement implicitly assumes security• Controlling digital software is hard; technology advancements favor hackers• Keeping honest users honest often seems like a more reasonable target• This is not a viable long-term monetization strategy; much lower ROI on LM investment
4
Losses from piracy can become significant, and they hurt both software vendors and their customers.
Source: Frost & Sullivan
China placed second in the world in the number of connections made to share unauthorized copies of ESA members’ game products – accounting for more than 11.5% of the world’s total..…Russia has not signaled a serious commitment to addressing piracy occurring through the Internet, which has exploded [because there is] no legal framework for addressing online piracy, coupled with steadily growing consumer access to broadband. - United States Congressional International Anti-Piracy Caucus (IAPC)
[Competitors using pirated software undercut legitimate licensees on price, creating a negative feedback loop.] If EDA industry doesn’t secure a level playing field for our customers, our industries will suffer greatly – EDA Consortium
Losses From Piracy Are Real
In the industrial sector, 2 in 3 members of the VDMA (the German Engineering Federation) have already experienced product piracy and/or counterfeiting.
All told, intellectual property theft costs U.S. businesses billions of dollars a year and robs the nation of jobs and lost tax revenues. – U.S. Federal Bureau of Investigation (FBI)
Worldwide, 42 percent of software used in 2011 was unlicensed - Business Software Alliance
5
Key Market Trends in Software Monetization
• Keeping software monetized and keeping IP secure is a harder challenge in international markets
• An issue for your customers, as much as for you
• License Management needs to keep pace with evolving business models and product architectures
• Analytics is increasingly important
• Installation complexity, run time cost and performance impact are increasingly non-negotiable
• At the same time, security is also increasingly non-negotiable
• This nudges LM towards being a first-class feature rather than an afterthought
• Homegrown LM highly prevalent in the market today• Fragmented platforms, multiple business models, cost control pressures, need for security and speed of innovation necessitate a formalized LM strategy
Market Trends
Geographical Expansion = Piracy Exposure
SaaS and Hybrid Form Factors Complement On-Premise
User Experience Around License Management Is High Priority Feature
Homegrown LM is not commercially viable for most ISVs
Peak activity between now and 2014
Peak activity 2014 to 2016
7
Vendor Profile: Wibu-Systems
Seamless
0
1
2 3
4
5
Scalable
0
1
2 3
4
5
Secure
0
1
2 3
4
5
• Seamless in development and deployment• License Central can be quickly personalized, or custom-built for ISV infrastructure/CRM system with support from Wibu-Systems
• CodeMeter dongles move freely from computer to computer or server to server
• Dongles are aesthetic branding opportunities• Tolerance built into activation verification minimizes false positives and disruption
• Scalable in terms of architecture and platforms• CodeMeter dongles support number of interfaces• Desktop, embedded and server platform support• Wide range of licensing model support• Protection process works the same way for CmDongle and CmActLicense, so ISVs can use either or both equivalently.
• Standardized encryption algorithms
• Company maintains an equivalent ongoing focus on functionality and security
• Internal innovation driving improved hardware and software locking and security technology
• External hacker challenges used regularly to test and validate company products
8
Critical
License management systems, once deployed, are very hard to replace. The process is deeply disruptive and extremely expensive. So choose
carefully the first time. Urgent
Key
Start with a clear view of prioritized functional requirements and business-appropriate security and cost targets. Then, choose a
license management solution that fits.Essential
Basic
Crafting a License Management Strategy: Key Takeaways
Key takeaways for an ISV, in descending order
Ensure your chosen solution will scale with your business and evolve with your product over time, and can also keep pace with expansion
and evolution of your customers.
Proactively craft a strategy and execute it with cross-team involvement including technical and financial management,
marketing, engineering, testing and operations.
Security and piracy management is as important as entitlement management in crafting a comprehensive license management
solution for your products and your business.
Page 11WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Customer Use Cases: Bosch Aftermarket
Software Monetization: Application for Aftermarket business Easy deployment is necessary for users Subscription based licensing CmActLicense at user side License Central for sales process integration
Page 12WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Customer Use Cases: Sirona
Software Monetization: IP protection High performance .NET protection Integrity protection (MPG) Increased market through flexible licensing License Central in sales process
Page 13WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Customer Use Cases: Wincor Nixdorf
Software Monetization: Protection against unauthorized use Access control for diagnostic functions Document encryption for manuals / service infos Fulfillment of PCI DSS requirements Automation of standard procedures
to make on site service more efficient
Page 14WIBU-SYSTEMS - Frost & Sullivan webinar: a customer centric view about best practices in software monetization
Q&A
Thank You
Contact us for next steps:Germany: +49-721-931720USA: +1-425-7756900China: +86-21-55661790
www.wibu.com, [email protected]