From Business

Discussion of the business of license management, ranging from whether to buy or build a license manager to various pricing models.

Which RLM Edition is best?

Three Editions of Reprise Software Licensing Toolkits – which RLM Edition is best for you?

Reprise Software now offers three licensing toolkit editions addressing the software licensing needs of cost-conscious ISVs.  This article compares the three editions to help you decide which RLM edition is best for you.

Reprise Software offers “RLM”, “RLM-Embedded”, and “RLM-ez.”  Each edition is a complete solution with tools for integrating license enforcement  into your applications, and for generating licenses to enable them. They all are based on a common set of licensing apis. How do they compare?

RLM

Reprise Software’s flagship product is RLM.  It contains all of the bells and whistles that users have come to expect from the best in enterprise class software license management.  RLM was designed by the same team that brought you FLEXlm, so in a sense RLM is the next generation of software licensing solutions.  RLM is used by hundreds of independent software vendors who deliver millions of licenses to users, worldwide.

RLM supports a wide array of software licensing models including floating or concurrent user, named user, and many others. RLM includes the RLM License Server that supports a full built-in admin interface.  The RLM License Server produces reports logs that are easy to parse into usage and billing reports using 3rd party tools, or tools that you write using the well-documented, open report log format specification. Reprise Software’s Activation Pro product supports Internet activation for RLM licenses.

First introduced in May of 2006, RLM supports the widest selection of platforms.

RLM-Embedded

Like RLM-ez, RLM-Embedded as a toolkit that supports node-locked licenses only, but with a rich api to support an unlimited number of products, and optional Internet activation via Activation Pro. RLM-Embedded uses the very same api as RLM, so if you upgrade to RLM, then you need to make no source code changes.

As you would expect, RLM-Embedded is offered at a much lower price point that the full RLM product.  In addition to supporting Windows, Linux, and Mac, RLM-Embedded supports some Unix platforms as well.

RLM-Embedded was first released in September, 2009.

RLM-ez

RLM-ez addresses simple node-locked licensing styles only.  If you simply want to make sure your software can run only on authorized computers, then RLM-ez is a good choice.  It uses industry standard digital signature technology so that you can deliver tamper-proof text-based licenses that are locked to your customer’s computer.

The RLM-ez API is very simple, with only a handful calls.  A typical use case for RLM-ez is when you want your customers to freely download your application for a trial period without you having to get involved.  This works well for low cost software where special hand-holding for licensing would be cost prohibitive.  When your customer wants to buy, he sends you his hostid, you generate a license, and email it back. Done.

RLM-ez pricing is a small one-time fee, per product, per platform. RLM-ez is supported on all the major desktop platforms, including Windows, Linux, and Mac.

RLM-ez was first released in March, 2014.

Please contact the Reprise Software Sales Team for more information and detailed pricing.

Using Software Activation to hande Decommissioned Computers

Did your customer’s computer really crash? – using software activation to verify.

Here’s the picture:  A software publisher’s support hot-line rings. The caller reports that his computer has crashed, and that he needs another software license for a new replacement computer right away. What to do?

Software publishers strive to ensure that their customers are not inconvenienced by software licensing issues. When a computer crashes, users scramble to find a new one.  They re-install their applications and contact their vendors to obtain new licenses. Software publishers provide a new license as quickly as possible, but how do the publishers know that the old license will be permanently retired and not put back into service if the old machine is repaired someday.  This is an especially important issue for software publishers who sell perpetual licenses.

Many software publishers handle this scenario by asking their customers to sign a form that certifies that the old license has been destroyed and that it will not be put back into service.  This provides a modest hurdle to dissuade customers from taking advantage of the software vendor’s easy license replacement policy.  Other publishers require a license transfer to be associated with an order, so that there is a paper trail that the company agrees that the old license is not to be used, verified by a purchase order coming from the company.  But, today software vendors who use an Internet software activation service, such as Reprise’s Activation Pro, have better methods to handle this case and others like it.

With Activation Pro, software applications are “activated” over the Internet.  Activation performs two important jobs: delivering licenses to users 24×7, and leaving behind a record of each fulfillment. Each fulfillment record contains:

  • activation key that was used
  • user’s computer hostid to which the license was issued
  • user’s IP address
  • date and time of the first and last fulfillment using that key
  • other data that the application wishes to associate with the activation event, and
  • a copy of the license that was delivered to the user

So, how do you use RLM and Activation Pro to handle a crashed or decommissioned computer?  Using RLM and Activation Pro, applications can periodically request the status of the fulfillment from the Activation Pro database.  If the fulfillment is valid, the application runs as normal. But, if the ISV deletes the fulfillment record from the Activation Pro database because the computer was reported to be crashed or decommissioned, the application can know to deny service.

When using this model, the license should include the activation key used to fulfill the license.  This way the application can check out the license at runtime to determine if it is valid, retrieve the activation key and the hostid from the license, then check the status of the fulfillment. The application will find out whether the license is still valid, or whether the fulfillment has been deleted.

Implementation details of the method described here can be found in the RLM and Activation Pro Reference Manuals on the Reprise Website.

Using RLM Activation Pro to Support Subscription Licensing

Subscription Licensing

Software publishers are adopting subscription licensing models at an increasing rate. Subscriptions help to smooth license revenue from recurring fees while attracting customers with lower entry costs.

Using RLM Activation Pro, an ISV can sell subscription licenses that have expiration dates years into the future. When users are connected to the Internet, applications can periodically request the status of the subscription from the Activation Pro service.  If the subscription is valid, the application runs as normal. But, if the user cancels his subscription or fails to renew, the ISV marks the activation key as “disabled” so that the application can know to shutdown.  The activation record can be re-enabled if the customer reinstates his subscription later.

This method minimizes the ISV workload because action only needs to be taken when the user cancels the subscription, or fails to renew.

RLM licenses that support a subscription model should include the activation key in the license itself.  This way the application checks out the license at runtime to determine if it is valid, retrieves the activation key and the hostid from the license, then checks the status of the subscription. The application will find out whether the license is still valid, or whether the activation key is disabled.

Implementation details of the method described here can be found in the RLM and Activation Pro Reference Manual.

Why Experience Matters in Software your Software Vendor

We've been lucky enough to be around software licensing for 20 years; combined, we have over 70 years of software licensing experience under our roof. It's safe to say that in that time we've seen it all, and then some. Whether it's enterprise end users wanting the best tools to maximize the usage of their valuable software assets, or software vendors wanting that next creative approach to licensing and selling their software, we've been there and done that.

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Licensing Strategies for an Economic Rebound

Recession Bar  GraphThrive by making changes to your software licensing programs

 

Some pundits have said recently that the global economy is coming out of the recession. True or not, overall business activity is still comparatively slow. We think that a sluggish, yet growing economy presents an opportunity to exploit changes in how you license your software.

Of course many software vendors’ revenues were barely affected by the slump – good for them. But not all vendors are as fortunate.  Every software vendor eventually experiences a slowdown at some point. When overall capital expenditures are declining it’s almost inevitable that software vendors will feel the effects too. In addition to redoubling your efforts to improve your core products, the key to successfully riding out a recession is to support an adaptable and creative set of software licensing programs.

Regular readers of this newsletter will already know that the best way to stay flexible is to integrate a license manager within your software. Here are some ideas for your marketing/sales teams to create new programs to help you weather the storm.

Streamline your Licensing Operations
Perpare yourself for growth by setting up a more automated licensing system can help you save money on labor costs, while improving customer satisfaction and increasing sales. When a prospective customer requests an evaluation of your product, you can send out an “evaluation key” that can be redeemed for a temporary license over the Internet that will be valid during the evaluation period. The best part of this tactic is that you know exactly when that license will expire, and perhaps when to contact the user to see if your product fits his needs. You then can either extend the evaluation by issuing a new “evaluation key” or convert the trial into a sale. For paying customers, you can allow them to self-serve their license keys using the same activation infrastructure.

New Pricing/Payment ModelsMoney  Key
Slow sales mean that it’s time to get creative with licensing. If you are now selling only permanent licenses, consider going to time-limited licenses, both to add recurring revenue and to avoid “giving away” value. Try selling annual licenses to reduce the upfront cost of your licenses.  Price the annual licenses at a level that will increase your revenue over time.  Also consider a pay-per-use scheme for those customers who prefer it.

Modularize your High-Value Components
Some software vendors use an economic slowdown to decouple some of their high-worth software modules from their basic product so that overall prices can be reduced while still capturing higher revenue from those customers who require the more expensive options. The lower cost of the basic version can open up new accounts and increase your market share as well.

“Productize” what you used to give away for free
We’ve talked to a lot of companies recently that are not, strictly speaking, software companies at all.  It turns out that many technology companies often “throw in” software as a kind of “enabler” or loss-leader, focusing instead on collecting revenue from hardware sales or consulting fees. Let me suggest that wherever there is perceived value in these software applications, there is also potentially untapped incremental revenue.

Increase your Maintenance Subscription Rate
License Managers are very useful tools to ensure that your customers use only the software versions for which they have paid support fees.  Try using the version number field in your licenses to encode a support-expiration date in the form yyyy.mmdd (2009.0531).  Let a license manager compare it to the “release date” of each version so that your customers must remain current with their maintenance payments in order to access new releases.

Expand your Sales into New RegionsGlobe
Use a license manager to restrict licenses by time zone or region to penetrate new markets at a much lower cost. Sales gains can be realized by charging a premium for licenses that allow use across wider geographies. Encourage additional license purchases from organizations whose software usage spans geographies.

Deepen Penetration within your Existing Customers
Often the best source of new license revenue is found within your existing customers. Not all users within a customer are the same. So try creating product classes that are specific to each different user type. A license manager makes it easy to build one binary that takes on different functional behaviors (“lite”, “basic”, “advanced” etc.), each one determined by the specific license key you issue. You can later sell upgrades by supplying an additional license key to turn on greater functionality. The pricing of these various classes of licenses should match the value that different user types ascribe to your software.  Examine software usage patterns to create a balanced set of licensing options that appeal to the widest audience within your best customers.

Find a lower-cost Licensing Vendor
While you are looking for new revenue sources, you might also consider making changes on the other side of the ledger. If you are tired of paying excessive fees for your third party license manager, maybe it’s time to consider a lower cost alternative. Reprise Software is in the sweet-spot in this regard – providing a world-class license management system at a much more affordable price.