ROI Calculator

Background
Software vendors who produce products without proper license usage controls usually find their customers unintentionally using more software than they purchased. Unintentional over-deployment is common even for companies who want to stay compliant. By adding license enforcement, software vendors see an increase in revenue because their customers can only use what they bought, thereby needing to purchase the licenses needed.

Example
A company purchasing 50 licenses of a product without license enforcement find themselves having 60 users actually using the software because of the lack of controls. When license enforcement is introduced, the company quickly realizes only 50 users can use the software but they need actually 60 licenses. This situation initiates a sales conversation.

Question 6a:
Estimated % of licenses in use above entitled limits
The purpose of this question is to capture the percentage of licenses estimated to be in use above entitled limits. SafeNet finds that our customer's sales teams often have a reasonable idea what this number is as a result of conversations with the customer, audits and the number of support calls.

Question 6b:
Estimated revenue increase after introduction of proposed licensing system
The purpose of this question is to estimate the effect on revenue after introducing license enforcement. Another way to look at the question is "how many more licenses will customers purchase because they will no longer be able to use more than they bought?".

Across the software industry this percentage is around 20%. Even using a conservative figure of 5% will usually make an attractive ROI case.

Background

For software vendors who sell perpetual licenses with annual maintenance, the challenges are often two fold:

1. How can we ensure only users on active maintenance can utilize our support services?
2. How can I prevent my customers from upgrading to a new version if they are not on active maintenance?

By adding license enforcement, vendors can better control the use of software throughout their customers' environments. Customers who cannot run more users than licenses purchased have smaller set of end users needing support services. Additionally, vendors who implement enforced version control can prevent customers from upgrading if they have not purchased a maintenance contract. As a result of license enforcement, the customers will need to purchase maintenance contracts that align with the number of users and software versions needed.

Example
Company X purchases 100 licenses of a product without license enforcement. The company deploys the software to 125 users. The following year the company decides to renew only 50 licenses to save cost. Shortly afterwards the vendor releases a new version of the software. Company X's IT staff downloads the new version of the software and, unware of the entitlement limit, upgrades all 125 users.

If the vendor's software product had license enforcement, Company X would not be out of compliance by 25% and could only have 50 users running the latest version of the product. In order to have 125 users running the latest version, Company X would need to purchase 25 more licenses and have 75 more licenses on active maintenance.

Question 7a:
Current annual maintenance renewal rate
Enter the current maintenance renewal rate.

Question 7b:
Target renewal rate after introduction of proposed licensing system
The purpose of this question is to estimate the effect on maintenance revenue after introducing license enforcement. Enter the target renewal rate as a result of introducing license enforcement.

Market Reality
In 2010, businesses and consumers bought $95 billion USD worth of software world-wide. At the same time the commercial value of softare piracy grew 14% to $58 billion USD. This means for each dollar spent, 63 cents worth of pirated software made its way into the marketplace.

SafeNet encourages our customers to separate unintentional non-compliance from malicious piracy:

1. Unintentional non-compliance - is typically found in customers who want to stay compliant but end up using more than they purchased because the software does not have the tools to help them stay compliant.
2. Software piracy - is the condition where the user runs the software knowing they are not entitled to do so.

It is important to separate the two because customers who are out of compliance unintentionally are much more likely to pay for licenses they need. Software pirates are unlikely to pay for software they cannot get for free.

Question 8a:
Revenue loss revenue due to software piracy today
Enter an estimated value for revenue loss due to piracy.

Question 8b:
Target revenue loss due to piracy after proposed licensing system
Enter an estimated revenue loss due to piracy with proposed licensing system.

Background
One of the advantages of implementing SafeNet license enforcement is the ability to deliver new license models to your customers.

Examples
Below find examples vendors using SafeNet's licensing products to support various models:

1. Feature based license models - Many vendors offer "feature-based licensing" which allows them to turn software modules on and off depending on what the customer has purchased. This also allows the vendor to sell sell individual modules as add-ons to a base product.
2. Concurrent use - SafeNet products include the ability to support concurrent use or "network" license models. This allows customers to share licenses among users without exceeding purchased limits.
3. Pay-per-use - Many vendors use SafeNet's products to deliver pay-per-use or metered license models.

Result
SafeNet's products allow vendors to monetize their software by offering a variety of license models and flexible offerings.

Question 9:
Revenue increase by introducing new and more flexible license models
Estimate increased revenue by introducing new license models.

Background
Sentinel EMS enables more effective product marketing, sales, and management by providing data collection and reporting features that allow customers to more accurately forecast their renewal, upgrade, and budgeting figures, as well as determine how products are being deployed and used. Options to collect user registration data, track entitlements, and monitor activation trends provides software vendors with direct access to the end-users who activate and use the product.

Question 10:
Revenue increase as a result of marketing programs with better targets
Estimate increased revenue through more targeted marketing programs.