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Licensing and Pricing Strategies
for "Short Duration" Applications
Many valuable software tools that
require floating licensing run for
only a short time. These include
various solvers, development and
design tools, and other specialty
software products that are designed
to perform very specific tasks very
quickly. Unlike typical interactive
or desktop applications, these
short-burst applications typically
do not have a GUI of there own, but
are often launched by other
applications within a product suite.
The "Short Duration" Licensing
Challenge
The licensing challenge is based on
the fact that a floating license is
a shared license. When a floating
license is used it is unavailable
until it is returned. But, short
duration tools consume licenses for
only a short time, so a single
license could potentially be shared
by a large number of users.
The "Short Duration" Pricing
Challenge
The licensing challenge is really a
pricing challenge. In other words,
how do you set a price for a single
floating license that is low enough
for small sites to afford while at
the same time scaling your pricing
so that larger sites that use more
of your software pay you more for
that use? How do you prevent large
sites from satisfying their
requirements by licensing only a
single floating copy of your
software?
Node-Locking?
An outdated approach would be to
revert to node-locked licenses tied
to each workstation or user.
Although this would solve the
problem, the vendor and end customer
would be inconvenienced by having to
create, install and manage N
licenses for N users. This is very
inefficient.
Customers would prefer to "float"
licenses to users who need them.
Extra Hold Time
One way to handle this problem is to
implement an extra "hold time" on
the floating license. This holds
the license for an extra number of
seconds after it is released,
regardless of how long the license
was actually used. So, for example,
if the application uses the license
for 20 seconds, upon termination of
the program the license is "held"
for an additional 300 seconds, say,
for a total of 320 seconds. The
effect is that the floating license
can be shared by fewer users because
it is "busy" for a longer period of
time each time it is used. This
encourages customers to order more
licenses to satisfy their user
population. But, some customers may
object to the license being
unavailable for such a long time.
Minimum Checkout Time
Another similar method is to enforce
a "minimum" license checkout
duration. Instead of extra time
being added to the end of a
licensing session as in the above
example, a license would be held for
at least a specified minimum amount
of time. So, a license with the
minimum checkout time set to 300
seconds would add 280 extra seconds
to a license that was in use for
only 20 seconds. Licenses used for
more than 300 seconds would not be
affected.
Both "extra hold time" and "minimum
checkout time" should be specified
in the license file, external to the
application, so that the same
executable can use either method
without modification to the source
code.
Post-use Billing
Since the ultimate goal is for the
vendor to get paid an amount that is
proportional to the value derived
from the customer's use of the
software, how about introducing a
metered or pay-per-use approach?
This approach is based on actual
usage time. A post-use billing model
would allow a customer to use as
much or as little of the software as
he wished, with no artificial
licensing constraints. The vendor
and customer would agree not on a
"per copy" price, but on a "per
hour" price. Periodically, say once
a month, the user would submit a
report generated from the license
manager's transaction log file that
would summarize usage time. The
user could put his own constraints
on the licenses so as not to exceed
a certain budget, but both the
customer and the vendor would be
satisfied.
RLM can handle these approaches, so
please contact Reprise Software to
discuss your needs in more detail.
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Reprise Software Reaches a
Major Milestone: 100th RLM Customer
Original FLEXlm development team
continues along accelerating growth
trajectory
Reprise Software is pleased to announce
that it has licensed the Reprise License
Manager to its 100th independent
software vendor customer. This
achievement represents an important
milestone in the short history of
Reprise Software. After making its first
sale about two years ago, Reprise has
steadily accelerated the rate of
adoption of RLM worldwide, propelling it
to a position of prominence in the
software licensing field.
"We thank our customers for helping us
attain this significant milestone," said
Matt Christiano, Reprise Software's
founder and president. "We founded
Reprise Software in 2006 on the idea
that there was an unsatisfied market
demand for innovative, affordable and
well-supported license management
software from an experienced team. Our
rapid success clearly demonstrates that
we were right. In a very short time RLM
has become the most attractive choice
for value-conscious and
independent-minded software vendors."
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RLM
Customer Story:
Structural Vibration Solutions
A Complex task with a simple solution
Structural Vibration Solutions A/S in Denmark is a world-renowned developer and
supplier of ARTeMIS Extractor. ARTeMIS Extractor is the leading software for
Operational Modal Analysis (OMA) - the modal analysis software for the vast
number of cases where it is preferred not to control or measure the vibrational
loading on structures.
Structural Vibration Solutions patented software products are unsurpassed in the
world, and their many references around the globe are proof of this. Operational
Modal Analysis (OMA) is the only thing they do, making them extremely
specialized.
The ARTeMIS modal software is an open, and user friendly platform for modal
testing, modal analysis and modal problem solving. If you can measure the
vibrations, ARTeMIS Extractor can give you the modes in terms of mode shape,
natural frequency and damping ratio.
The ARTeMIS Extractor software is used around the globe within Mechanical,
Civil, Aerospace, Offshore, Maritime & Automotive engineering. Eg. Siemens,
NASA, Boeing, Stone Cutter Bridge among others. The size of the structure you
want to measure does not matter.
What matters?
Time is money and therefore it's very important for Structural Vibration
Solutions A/S to offer their customers the possibility to measure and use the
ARTeMIS Extractor software during normal service state of the structure which
also means that they can measure the structure in its true boundaries. ARTeMIS
Extractor gives customers fast and automatic results which save them time and
money.
RLM has simplified license distribution!
It has been a key issue from the beginning that Structural Vibration Solutions
A/S needed a licensing system as flexible as the rest of their own ARTeMIS
Extractor Software. RLM has been able to provide us with a system which fulfills
their requirements.
Today the homepage
www.svibs.com attracts a huge number of people from around the globe who
daily download the software for evaluation. Therefore it's important that the
system is easy and fast for customers to use, experiencing success with ARTeMIS
Extractor software right away.
Structural Vibration Solutions generates as many licenses as they need without
any extra cost. They provide their customers with a time limited evaluation
license which can be turned into a permanent node locked license after purchase
which they can activate online using the internet or offline using a telephone
or email.
Structural Vibration Solutions A/S does not carry any physical inventory, so the
RLM licensing system is a crucial part of our operations and a reason for our
success in the global market.
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