the trends, impacts on your business & how …...usage metadata flexera usage cloud licensing...

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The Trends, Impacts on Your

Business & How Flexera Software

Solutions Can Help You

Mathieu Baissac, VP of Product

Management

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Key Challenges in the Market Space

Internet of Things

by 2020 – IDC, 2013

Internet of

(autonomously)

connected things

30 billion

units

Security/Licensing

Enhance Customer

Experience

Cloud/SaaS

Virtualization

Usage Management

Licensing & Usage Capture

Entitlement Management

Back-office

Update, Intelligence,

Support

Flexera Solutions

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PWC 2013 SoftSummit

(source: IDC, 2013)

Market Trend 1–Growth in Usage-Based Licensing

What the analysts say:

Usage-based licensing model

expected to grow 2x more than any

other model in next 18-24 months

(source: IDC, 2013, n=874)

84%

of net new commercial

apps will be developed specifically

for cloud in 2013 (source: IDC, 2013)

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Market Trend 1–Growth in Usage-Based Licensing

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• Provide a whole solution encompassing Usage and Enforcement

• Support many deployment models

Flexera Software Usage Management Solution

FlexNet

Operations

CLS

SaaS

app Client

SaaS

FlexNet

Operations

CLS

App

Client

App

Client

Client direct to back-office

FlexNet

Operations

CLS

App

Client

App

Client

LLS

Less connected

CLS=Cloud Licensing Service

LLS=Local License Server

• Integrate with Zuora for invoicing

• Support new licensing/business models:

– Compliance automation (replacing audit teams)

– SaaS applications/services

– True-ups

– Pay for overages

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Example: Overage With a Hardware Company Compensated Flexibility

FlexNet Publisher

local license server

Overage triggered

Usage event

FlexNet Operations

Usage Reports

Cloud Licensing

Service

Entitlements

View overage

Monthly overage invoices

FNE=FlexNet Embedded

FNE

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Example: Overage With a Software Company Compensated Flexibility

On p

rem

ises

Rackspace

A

zure

Hyper - V

IaaS technology

Azure

5

2 10

VM

copy

VM VM VM VM VM

VM VM VM

VM VM

FlexNet Operations

Store

Usage Reports

Cloud Licensing

Service

Entitlements

Event when started,

disabled with unique IDs

Prepay

1 year

10 copies

Monthly

overage

invoices

3

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FlexNet Operations

Example: Service Provider Management Automated Royalty Payment

Usage Reports

Customers

Entitlements Flavors: Pro, Std, Plus

Service Provider Producer

SP #500

SP #2

SP #1

Producer Services

Usage Metadata

Flexera Usage

Collector Cloud Licensing

Service

SFDC

Opportunities

Orders

Finance, Product

Mgr, etc.

Monthly

invoices

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Trend 1 – Usage - 2014/’15 Roadmap Highlights

• FlexNet Licensing

– FlexNet Embedded

• Support usage-base licensing in always disconnected environments (Q1 ‘15)

• FlexNet Operations

– Adding Usage Management and Cloud Licensing Service to on-

premises (Q3 ‘15)

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Market Trend 2 – Intelligent Device Manufacturers

are Using Software as Differentiator

• IDMs to grow from $1.4T to $1.7T

(YoY 2013), 10.1% CAGR to 2017

(IDC: 2013)

• 60% of resources are spent on

software vs. 30% on hardware

(Flexera Software 2013 survey)

• 87% are adding “intelligence” to

their devices

– 60% to react faster to market

changes, 55% to reduce time to

market

• 58% do not monetize software yet

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70% said update, 47% said device config and 49% said remote diagnostics were important or very important use cases (AUM 2013 survey)

Internet of Things, Machine-to-Machine and

Intelligent Device Manufacturers

Intelligent

Systems

Source: IDC, 2013

Internet of Things

Ecosystem

by 2020 – IDC, 2013

Internet of

(autonomously)

connected things

30 billion

units

IDM

Monetization Update Security Config Support Use Intelligence What we

do today

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Example: Make 1, Charge for Many Manufacturing Simplification & Cost Reduction

FlexNet Operations


Producer Key

Generator

Orders

Fulfillments (New, Renew, Trial, etc)

Producer Shop Floor Customer/Channel

Pre

-Sh

ip C

on

fig

ura

tio

n

Late

Bin

din

g

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Producer Device

Manager

Example: Monetize Beyond Hardware Software Margins, Recurring Revenue, Customer Flexibility

FlexNet Operations


Producer Key

Generator

Orders

Fulfillments (New, Renew, Trial, etc)

Producer A City

Customer

Optional Features:

-Weather

-Find open slot

-Pay your ticket

Monitoring/fixing

- Meter is full

- Meter is broken

- Someone is

attacking the

meter

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Internet via

Mobile-WiFi

or cellular

Example: Keeping Hardware Up to Date Reduce Risk/Cost of Old Software, Excite Customers

Producer provides new update

Download via

WiFi or cellular

Download via

WiFi or

Bluetooth

Mobile checks

for updates

User accepts

T&Cs

Mobile app iOS or Android

Notification of

an update

Powered by

FlexNet Connect

Server

1

2

3

5

4

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Trend 2 – Enabling Hardware + Software –

‘14/’15 Roadmap

• FlexNet Licensing – FlexNet Publisher

• License Server performance improvements (Q4 ‘15)

– Improved license checkout efficiency

–New “is the license server okay” tool to avoid frequent use of lmstat (can negatively impact performance)

– FlexNet Embedded • Extending license server checkout (Q3 ‘15)

• FlexNet Operations – Provide Electronic Delivery for on-premises (Q3 ‘15)

– Provide reports for end users/channel partners (Q1 ’16)

• FlexNet Connect – Integration into FlexNet Operations for entitlements & delivery

(Q3 ’14)

– Enhanced device mgmt: event alerts, improved crash/data analytics (Q4 ‘15)

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Market Trend 3 – Enterprises Say

“Make Licensing Easier” • Enterprise feedback: make it easier to use and scalable

– Make “licensing invisible”

– Provide self-service access to entitlement

– Provide centralized management licensing function (e.g. device managers)

– In product activation

– In-product updates

• Flexera Software’s current solution: – In-product activations

– Trusted storage

– Command line tools

– Easier to install License Servers (FlexNet Embedded)

– Network friendly licensing technology (FlexNet Embedded)

– Forgiving licensing with borrowing (FlexNet Embedded)

– Cloud Licensing Service (FlexNet Embedded)

– Integration with reporting/monitoring tool (FlexNet Manager Engineering

Applications)

– Usage-based licensing model support (FlexNet Embedded)

IDC 2012: 30% of Producers

provided in-product activation

IDC 2013: 44% of Producers

provide in-product activation

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FlexNet Embedded 101 in Picture Form

Entitlement & Licensing Management

Local License

Server

App

Enterprise #1

Activation

request &

response

License

request &

response

OR Borrowed for 5 days / Renew daily

Optional bidirectional

data sharing and

license update

Replication

Cloud

Licensing

Service

Borrowed for unlimited

build slide

Ent #3

Ent #2

Ent #1

Back-up Local

License Server

Trusted Storage

Producer or Flexera

Trusted Storage

FNE client

Trusted Storage

App

FNE client

Activation

request &

response

Trusted Storage

License

checkout

License request &

response OR usage

sending &

acknowledgement

Borrowed for 5 days

Renew daily

License

checkout

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Feature 1,

Qty=99 Feature 1,

Qty=100

Example: Licenses Shared Across the World Concurrent/Sharing With No Local License Server

FlexNet

Operations

Cloud

Licensing

Feature 1,

Qty=99

Feature 1,

Qty=100 Feature 1,

Qty=99

FlexNet Operations

Usage Reports

Cloud Licensing

Service Entitlements

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FlexNet Operations

Example: FlexNet Connect Activation Simplified Activation and License Updates

FlexNet Connect

Customer, Producer #532

FlexNet Connect

Entitlements

Producer

NS #5

NS #2

Notification

Server #1

Cloud Licensing

Service

SFDC

Opportunities

Orders

FlexNet Connect

BackOffice

(PMP)

Producer Instance

#532

Producer Instance

#412

Auto-provisioning

Instance ID

4R57BJVF0AW9

Instance ID

4R57BJVF0AW9

Instance ID

4R57BJVF0AW9

One ID for all

transactions, up to

date all the time

60 day borrow

30 day renewal

Trusted

Storage

Trusted

Storage

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Trend 3 – Easier - 2014/’15 Roadmap Highlights


– FlexNet Publisher

• License Server performance improvements (Q4 ‘15)

– Improved license checkout efficiency

–New “is the license server okay” tool to avoid frequent use of lmstat (can negatively

impact performance)


• New java-based license server for easier installations (Q1 ‘15)

• Providing command line tools to end users (Q1 ‘15)


– Electronic Software, Usage Management and Cloud Licensing

Service for on-premises (Q3 ‘15)

– Provide reports for end users/channel partners (Q1 ’16)

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• This is coming up with every producer we talk to:

– “What are we going to do about China/Russia/India/Brazil”

- SIIA ’13 survey: 48%-competitive IP theft had serious impact to

their business; 63% had reversed engineering challenges (n=814)

• Flexera Software current solution:

– Software protection (application tampering)

has been part of FlexNet Publisher since 2005

– Added to FlexNet Embedded recently

Market Trend 4 – Security/Anti-piracy is Hot Topic

Business Software Alliance, 2012 report

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Application Hardening & Tamper Resistance

• Protection against… – Debuggers

– Fraudulent signing of app & dlls

– Removal of certificate

– Modification of apps & dlls

• Obfuscation & Intertwining… – SDT like value but with aliases

• Hide Strings

• Hide Variable Contents

• Hide Operations on Variables

• Hide Imports From Static Analysis

• Multiple Paths of Execution

– Hide yes/no decisions

– Thwart static analysis

– Protection against in-memory patching

• Application tamper detection – Support call home functionality to report

application tampering

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Example: InstallShield

• High volume desktop application for software engineers

• Estimate ~50% piracy prior to putting licensing

• Using tamper resistance as part of FlexNet Publisher

– No known hacks since implemented

• How do we know?

– Use FlexNet Connect to call home

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Trend 4 – Security - 2014/’15 Roadmap Highlights



• Anti-piracy solution (making applications tamper resistant) (q3 ’14)

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• Server virtualization is #1 enabler of accidental

non-compliance

• Flexera Software current solution:

– Detect & deny, binding to VM UUID for VMware ESX & ESXi,

Microsoft Hyper-V and Citrix XenServer

– Cloning detect & report using Microsoft VM Generation ID

– Cloning detection using Cloud Licensing Service

– Provide another approach: Usage Management

Market Trend 5 – Virtualization and the Cloud as

Disrupters

Factoids:

47% 12

%

CIOs were

implementing virtual

private clouds in 2013

(InformationWeek 2014)

(+1% from 2012)

of Enterprises said they

did not track software

in VM environments

(vs. 0% for non-VM software)

(IDC 2013 survey)

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FlexNet Operations

Example: Multi-Approach for Disconnected Enable Reasonable use of VM Technology

Customer #1

Entitlements

Producer Orders

Activation #1

Hyper-V Manager

VM VM VM VM

Hyper-V Hyper-V

Hyper-V Manager

VM VM VM

Hyper-V Hyper-V

VM VM VM VM

Activations (New, Renew, Trial, etc)

Activation #2

Repair required

VM Generation ID

broken

Tier 2

VMware Workstation,

Parallel VM,

Oracle VM VirtualBox

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Trend 5 – Virtualization - 2014/’15 Roadmap Highlights


– FlexNet Publisher

• Virtualization technology story continuation

–Microsoft VM Generation ID cloning detection (producers to apply policy)

(Q2 ‘14, Q4 ’14)

–2nd tier VM environment detection (producers to implement policy) (Q4 ’14, Q2’ 15)


– Repair and return policies for Cloud (Q1 ‘15)

– Usage Management and Cloud Licensing Service for

on-premises (Q3 ‘15)

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Q&A

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Thank you!

Tu Le – FlexNet Licensing

Sanjay Pattanayak – FlexNet Operations

Mathieu Baissac – all products

the trends, impacts on your business & how …...usage metadata flexera usage cloud licensing...

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