A Cash Machinefor Your Software
Ruediger Kuegler | VP [email protected]
Stefan Bamberg | Senior Key Account Manager [email protected]
A Business View
The User’s / ISV’s Experience
The Developer’s Perspective
Speaker 3
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Basic Foundations ofSubscription Models
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License Subscription
The user leases the software The right to use the software ends when the subscription expires In technical terms
Time-limited license with Expiration Time
Examples: Anti-virus software
Office applications like Office 365
Game portals like Sony Entertainment Network
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Maintenance Subscription
The user purchases the software The user signs up for a maintenance contract The right to use the software does not expire The right to receive updates expires with the end of the maintenance In technical terms:
Perpetual license with a Maintenance Period
Example: Microsoft Software Assurance
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Paying by Installments
The user pays for the software in installments The user get the timely unlimited right to use the software after the last
payment In technical terms
Time-limited license with Expiration Time until last payment,
Converted into a perpetual license after last payment
Example: Selling software in Latin America
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Pricing of Subscription Models
Purchasing software only Full price 100%
Payment by installments 1 to 2 years, 5% - 20% annual interest rate
Price of the update 50% - 100%, depending on the last purchase
Maintenance Subscription Annual maintenance fee 12% - 25% of license fee
License Subscription Monthly fees 2% - 5% of license fee
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Software Revenues per Customer
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0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 600%
50%
100%
150%
200%
250%
300%
Purchase
Payment by Installments
Purchase / Updates
Purchase / Maintenance Subscription
License Subscription
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Business Analysis – Example 1
New customers per year 100
Price of the software application (license fee) $5,000.00
Selling software update 50% of the customers purchase an update
Update priced at 50% of the software
Purchase after 3 years
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Business Analysis – Example 2
Maintenance Subscription 75% of the customers sign up for a maintenance contract
Maintenance fee is priced at 20% of license fee
Churn rate: 10% per year
License Subscription Price: 4% of license fee
25% more customers thanks to an enticing offer
Churn rate: 5% per year
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Annual Software Revenues
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1 2 3 4 5$0.00 Mio
$0.25 Mio
$0.50 Mio
$0.75 Mio
$1.00 Mio
$1.25 Mio
$1.50 Mio
Purchase / Updates
Purchase / Maintenance Subcription
License Subscription
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Conclusions of the Business Analysis
Selling maintenance contracts via subscriptions is risk-free A license subscription model generates more revenues in the long term,
but represents a risk in the early years Introducing a new license model attracts more customers
For a successful outcome, the selection of the right subscription price is essential: its relation to the full software price and certain psychological barriers at $50 / $100 / $200 / $500 come into play
It is recommended to proceed in stages, i.e. for individual products or markets
The math and the business analysis are different for each software!
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Workflow
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CodeMeter User
Signing up for a Subscription
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License (next billing date + overtime)
4
Ticket + Context
3
TicketABCDE-FGHIJ-KLMNO-PQRST-UVWXY
2
Subscription Agreement (Original PurchaseID)
1e-commerce
Software
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CodeMeter User
Next Billing - Renewal of the License
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Updated Licenses (next billing date + overtime)
3
Ticket + Current License
2
Renewal (Original PurchaseID + PurchaseID)
1e-commerce
Software
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The User’s Experience
01.06.2016
Join the conversation on Twitter using #WIBUlive
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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Shopping Cart
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Confirm Subscription
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Entering Credit Card Credentials
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Order Confirmation with Activation Code (Ticket)
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Information about Subscription Cancelation
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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Activate NowActivate Now
Software Activation
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LXCYX ZD5FN BRZZSQMGTTCDVB8- - - -
Please enter your Activation Key:
License successfully activated!
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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Automatic Billing during the Subscription 1
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Automatic Billing during the Subscription 2
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Automatic Billing during the Subscription 3
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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Automatic Renewal of a License
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Search for License Updates…
License successfully renewed!
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User’s Experience
Signing up (purchase) for a subscription on an e-commerce platform Ticket as an activation code
Activation of the subscription license Enter the ticket
Automatic billing during the subscription on the e-commerce platform Automatic renewal of the license Automatic notification when credit card expires
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Credit Card Expiration Notification
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Updating Credit Card Credentials
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Successful Update
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The ISV’s Experience
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Join the conversation on Twitter using #WIBUlive
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ISV’s Experience
e-commerce platform (i.e. Cleverbridge) List of subscriptions
CodeMeter License Central Orders of one ticket
Licenses and Updates of a ticket
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© WIBU-SYSTEMS AG 2016 - A Cash Machine for your Software 37
ISV’s Experience
e-commerce platform (i.e. Cleverbridge) List of subscriptions
CodeMeter License Central Orders of one ticket
Licenses and Updates of a ticket
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List of Subscriptions on the E-Commerce Platform
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ISV’s Experience
e-commerce platform (i.e. Cleverbridge) List of subscriptions
CodeMeter License Central Orders of one ticket
Licenses and updates of a ticket
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Orders related to a Ticket
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Licenses / Updates in one Ticket
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The Software Developer’sPerspective
01.06.2016
Join the conversation on Twitter using #WIBUlive
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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Configuration of an item in the E-Commerce Platform 1
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Configuration of an item in the E-Commerce Platform 2
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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Configuration of an item in the CodeMeter License Central
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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Connector: Data-Mapping
// CMLC orderID << CB PURCHASE_ID$orderID = readParam("PURCHASE_ID");
// CMLC customerID << CB PURCHASE_ID$customerID = readParam("PURCHASE_ID");
// CMLC comment << CB EMAIL and PURCHASE_ID$comment = readParam("EMAIL")."-".readParam("PURCHASE_ID");
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Connector: Check if Initial Purchase
$originalOrderId = "";$cbOriginalOrderId = getOriginalPurchaseId()if ($cbOriginalOrderId != $orderId) // initial purchase{
$originalOrderId = $cbOriginalOrderId;$customerID = $cbOriginalOrderId;
}
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Connector: Set Expiration Date
// Set param for Expiration Time$params[] = array (
"name" => "SubscriptionEndDate","value" => addDays(getNextBillingDate() + overTime),
);
// Add new item to item array$items[] = array (
"itemIdentification" => $itemID,"quantity" => $quantity,"param" =>
$params,);
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Connector: Import Order
// Create order$order = array(
"orderIdentification" => $orderID,"origOrderIdentification" => $originalOrderId,"customerIdentification" => $customerID,"comment" => $comment,"product" => $items,
);
// Calling webservice$ticket = doOrder($LC_Username, $LC_Password, $order);
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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Software Workflow I
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Is the license available?
Is license in overtime? Enter the ticketStart activation
Renewal with an existing ticket Start software Store ticket Error
Yes No
Yes No ErrorOK
Start software…
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Software Workflow II
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Renewal with an existing ticket
Start software
OK No
Has the license expired?
WarningError
Start software
Yes No
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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Call of the Gateways 1
GetRemoteContextBuffer(serial, firmCode, out context);
GetLicenseUpdate(ticket, firmCode, context, ticketLicenseIds, codeMeterActId, Activate, urlServer, out update);
SetRemoteUpdateBuffer(update.Result.updateContext, firmCode, serial, out newSerial);
GetRemoteContextBuffer(newSerial, firmCode, out context);
ConfirmLicenseUpdate(context, urlServer, out confirm);
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Call of the Gateways 2 (Initial Creation of a CmContainer)
// if we don‘t have a CmContainer, create a new one
GetLicenseInformationFile(firmCode, codeMeterActId, urlServer, out lif);
RegisterCmActContainerBuffer(lif.Result.licenseInformationFile, firmCode, codeMeterActId, out serial);
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The Developer’s Perspective
Configuration of the items on the e-commerce platform (Cleverbridge) Configuration of the items in CodeMeter License Central Interface between the e-commerce platform and CodeMeter License
Central Integration of renewals in the software Gateway for online activations WebDepot for an alternative activation
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WebDepot
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WebDepot Configuration
// "all" = shows all licenses// "latest" = shows only latest (newest) license per ticketIddefine ("UI_CONFIG_SHOW_MODE", "latest");
// "selected" = takes selected licenses only// "all" = takes all licensesdefine ("ACTIVATION_MODE", "all");define ("DEACTIVATION_MODE", "all");define ("REACTIVATION_MODE", "all");
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Deutschland: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
http://www.wibu.com
Germany: +49-721-931720
USA: +1-425-7756900
China: +86-21-55661790
http://www.wibu.com
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Thank you for your active participation!
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