1
The Trends, Impacts on Your
Business & How Flexera Software
Solutions Can Help You
Mathieu Baissac, VP of Product
Management
2
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
3
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)
4
Market Trend 1–Growth in Usage-Based Licensing
5
• 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
6
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
7
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
8
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
9
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)
10
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
11
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
12
Example: Make 1, Charge for Many Manufacturing Simplification & Cost Reduction
FlexNet Operations
Entitlements Flavors: Pro, Std, Plus
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
13
Producer Device
Manager
Example: Monetize Beyond Hardware Software Margins, Recurring Revenue, Customer Flexibility
FlexNet Operations
Entitlements Flavors: Pro, Std, Plus
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
14
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
15
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)
16
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
17
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
18
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
19
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
20
Trend 3 – Easier - 2014/’15 Roadmap Highlights
• 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
• New java-based license server for easier installations (Q1 ‘15)
• Providing command line tools to end users (Q1 ‘15)
• FlexNet Operations
– Electronic Software, Usage Management and Cloud Licensing
Service for on-premises (Q3 ‘15)
– Provide reports for end users/channel partners (Q1 ’16)
21
• 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
22
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
23
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
24
Trend 4 – Security - 2014/’15 Roadmap Highlights
• FlexNet Licensing
– FlexNet Embedded
• Anti-piracy solution (making applications tamper resistant) (q3 ’14)
25
• 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)
26
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
27
Trend 5 – Virtualization - 2014/’15 Roadmap Highlights
• FlexNet Licensing
– 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)
• FlexNet Operations
– Repair and return policies for Cloud (Q1 ‘15)
– Usage Management and Cloud Licensing Service for
on-premises (Q3 ‘15)
28
Q&A
29
Thank you!
Tu Le – FlexNet Licensing
Sanjay Pattanayak – FlexNet Operations
Mathieu Baissac – all products