to bundle or to nest? that is the question

© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 1

Ruediger Kuegler | VP Salesruediger.kuegler@wibu.com

Stefan Bamberg | Senior Key Account Managerstefan.bamberg@wibu.com

To Bundle or To Nest

16 November 2016

Speaker 3

© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 2

To Bundle or to Nest

16 November 2016

That’s the question!

© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 3

Features On Demand

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© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 4

Features On Demand

What does Features On Demand mean? Selling software in different configurations

Modular licensing

Why shall I use Features On Demand? Low-cost entry offers for new customers

Possible increase in sales with after sales business

Flexible pricing

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The Challenge: Individual Packages for Each User

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Software• Basic Module• Single User

• Additional Module• Single User• 30 days

Software• Basic Module• 10 Users

• Additional Module• 10 Users

Software• Basic Module• 7 Users

• Additional Module• 5 Users

Software• Basic Module• Single User• Pay-per-Use

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The Solution: One Software Package - Different Licenses

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License• Basic Module• Single User

• Additional Module• Single User• 30 days

License• Basic Module• 10 Users

• Additional Module• 10 Users

License• Basic Module• 7 Users

• Additional Module• 5 Users

License• Basic Module• Single User• Pay-per-Use

Software Software Software Software

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Two Typical Use Cases

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Single Products - Sold in Bundles

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Feature Home Professional Enterprise

Word Processor + + +

Spreadsheet + + +

Presentation + + +

Messaging Lite +

Mail Client + +

Database +

Messaging for Business +

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Same Modules in Different Applications

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Feature Cutting Bending Punching

Basic Feature + + +

Cutting Optimization o - -

Data Import o o o

CAD o - o

3D Modelling o o o

NC-File Export o o o

Reporting o o o

© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 10

Realization Options

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Realization Options

Option A: Each module has its own Product Code

Option B: Each module is a bit in the Feature Map

Option C: Own bitmask in Extended Protected Data

Option D (Universal Firm Code): Each module has its own Product Code

Structuring in Nested Product Items

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Comparison of the Realization Options

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Feature Option AProduct Code

Option BFeature Map

Option CProtected Data

Option DNested Items

Security +++ ++ + +++

Number of Modules 2,000 32 >2,000 2,000

Updates with CodeMeter License Central Simple Complex Individual Simple

Grouping Licenses in the Runtime - Yes Yes Yes

Borrowing Licenses Individual Complete Complete Complete

Individual Expiration Date Yes - - Yes

Individual Counter (Pay-Per-Use) Yes - - Yes

Individual Number of Concurrent User Yes - - Yes

Firm Codes All All All Universal

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Package Sample

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Single Products - Sold in Bundles (1)

Each Module / Product is assigned its own Product Code Each Module / Product is created as a separate item in CodeMeter License

Central The packages are created as bundles in CodeMeter License Central

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Single Products - Sold in Bundles (2)

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Feature Home Professional Enterprise

Word Processor 1000 1000 1000

Spreadsheet 2000 2000 2000

Presentation 3000 3000 3000

Messaging Lite 4000

Mail Client 5000 5000

Database 6000

Messaging for Business 7000

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What are Product Bundles?

Product Bundles simplify the sale of modular licenses with CodeMeter License Central Related products

Additional options can be checked or unchecked

Product Bundles simplify the configuration of items in CodeMeter License Central The same item can be used in several Bundles; a single change to it will

automatically affect all derivatives

Convenience when products consist of several Product Codes

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How do Product Bundles work?

Sale Selecting optional modules

Entering the order-specific parameters

Activation Merge: Bundles are managed as a single product and can only be activated /

deactivated together

Separate: Bundles are managed as individually activated parts

Inside CmContainers Simple list of Product Items without any knowledge of the relations between them

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Configuration of a Bundle with Necessary / Merge / Merge

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Sale of a Bundle with Necessary / Merge / Merge

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Activation of a Bundle with Necessary / Merge / Merge

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Licenses in a Bundle with Necessary / Merge / Merge

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Configuration of a Bundle with Necessary / Separate / Separate

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Sale of a Bundle with Necessary / Separate / Separate

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Comparison of Sales: Separate / Merge

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Activation of a Bundle with Necessary / Separate / Separate

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Comparison of Activations: Separate / Merge

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Licenses in a Bundle with Necessary / Separate / Separate

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Comparison of Licenses in the CmContainer: Separate / Merge

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Each Module / Product can be borrowed separately

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Module Sample

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Same Modules in Different Applications

Alternative 1: Each module in each application is assigned a unique Product Code

Realization as single items, bundles or Nested Product Items

Context of the module is given by Product Code range

Alternative 2: Each module is assigned a unique Product Code, regardless of the application it

belongs to

Realization as Nested Product Item

Context of the module is given by parent item

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Alternative 1: Product Code per Module / Application

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Feature Cutting Bending Punching

Basic Feature 5000 6000 7000

Cutting Optimization 5001 - -

Data Import 5002 6002 7002

CAD 5003 - 7003

3D Modelling 5004 6004 7004

NC-File Export 5005 6005 7005

Reporting 5006 6006 7006

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Alternative 1aBundle

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License Configuration with Opt-In / Opt-Out

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Sale of Licenses with Opt-In / Opt-Out

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Activation Separate

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Licenses in CmContainer

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Each Option can be borrowed separately

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Alternative 1bNested Product Items

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ModuleItemParent defines Transfer Type and Product Code …

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… ModuleItemParent contains ModuleItems

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ModuleItem Contains only Minimal Data

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Creation of ModuleItems

Options are inherited from parent item: CmContainer Type (CmDongle, SmartBind, …)

Transfer Type (Borrowing)

ModuleItems cannot contain other ModuleItems Options can be inherited from parent item:

License Quantity should be inherited

Override is possible (Influence on borrowing)

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Sales and Activation of Nested Product Items

Configurable options Fixed / Opt-In / Opt-Out during sales process Order specific parameters similar to bundles

Mainly in ModuleItemParent, because they are mainly inherited

Activation separate or merged Mainly merged

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Licenses in the CmContainer

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Comparison Licenses: Nested Product Items / Bundles

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The Application is (only) borrowable as a whole

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Comparison Borrowing: Nested Product Items / Bundles

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Different Applications in one CmContainer

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Different Applications: Nested Product Items / Bundles

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Same Modules in Different Applications

Alternative 1: Each module in each application is assigned a unique Product Code

Realization as single items, bundles or Nested Product Items

Context of the module is given by Product Code range

Alternative 2: Each module is assigned a unique Product Code, regardless of the application it

belongs to

Realization as Nested Product Item

Context of the module is given by parent item

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Alternative 2: Product Code per Module

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Feature Cutting 5000 Bending 6000 Punching 7000

Basic Feature 1000 1000 1000

Cutting Optimization 1001 - -

Data Import 1002 1002 1002

CAD 1003 - 1003

3D Modelling 1004 1004 1004

NC-File Export 1005 1005 1005

Reporting 1006 1006 1006

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Alternative 2 – Same Product Codes

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Comparison: Alternative 2 / Alternative 1

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Comparison: Alternative 1 / Alternative 2

Difference mainly in software implementation Alternative 1 supports all 3 options

Single items

Bundles

Nested Product Items

Alternative 2 supports only Nested Product Items

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Software Implementation

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Software Implementation

CmAccess2(Firm Code, Product Code) WupiCheckLicense(LicenseId) Encryption with AxProtector (separate Dll) Encryption of individual functions with IxProtector Encryption of methods or classes with AxProtector .NET and AxProtector

Java

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Summary

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Comparison of the Realization Options

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Feature Option AProduct Code

Option BFeature Map

Option CProtected Data

Option DNested Items

Security +++ ++ + +++

Number of Modules 2,000 32 >2.000 2,000

Updates with CodeMeter License Central Simple Complex Complex Simple

Grouping Licenses in the Runtime - Yes Yes Yes

Borrowing Licenses Individual Complete Complete Complete

Individual Expiration Date Yes - - Yes

Individual Counter (Pay-Per-Use) Yes - - Yes

Individual Number of Concurrent User Yes - - Yes

Firm Codes All All All Universal

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To NestTo Bundle

To Bundle or To Nest?

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Only in CodeMeter License Central

Simplifies the sales process

Simple configuration in CodeMeter License Central

Flat list in CmContainer

Single borrowing Also different license quantities

Workflows in ISV’s interface

Grouping in CodeMeter Runtime

Same Product Codes in different applications are possible

Less storage space in CmContainer

Complete borrowing Different license quantities are not

supported

Convenient for the user

Deutschland: +49-721-931720

USA: +1-425-7756900

China: +86-21-55661790

http://www.wibu.com

info@wibu.com

Germany: +49-721-931720

USA: +1-425-7756900

China: +86-21-55661790

http://www.wibu.com

info@wibu.com

© WIBU-SYSTEMS AG 2016 - To Bundle or To Nest? 61

Thank you very much for your attention!

16 November 2016