KEYnote 34 English - Fall 2017 | Page 10

Buying New Prepaid Units With subscriptions or maintenance agreements , the renewal date is known and predefined . In the case of pay-per-use licenses , the renewal depends on the actual units consumed by the client .
This is simple when material is licensed for a machine : A ticket is created for each delivery or a license booked onto an existing ticket assigned to the machine in question . If automatic renewal is configured , the ticket can be stored in the machine and new units retrieved with full transparency for the user . In the rare cases that the machine might not be online , the license can be delivered by a separate file , automatically including all of the security features and protection mechanisms of CodeMeter . The license file can be used only once on the target machine . Any open updates are automatically included , and the process is completed with a transparent receipt .
To buy new units manually , the user starts an order and typically receives the new units immediately after the purchase has been completed , if an e-commerce solution is used . For ERP or CRM solutions , the delivery time will depend on the specific system , its implementation , and the defined processes . Your software notifies the user if the unit counter is reaching its limit , so he or she can purchase new units in time .
Automatic Billing Automatic billing needs communication to flow in both directions to ensure that the current unit counter is fed back to you without tampering or manipulation . CodeMeter has a built-in function to export such data ; how you process it in your ERP , e-commerce , or CRM systems depends on the workflows you have defined for your business . Which means of payment are allowed for which clients ? What happens when a credit card expires ? How are clients locked out if they fail to make their payments ?
After the billing process has been completed , CodeMeter License Central is instructed to create a new license or free up new units . Just as in the case of manual orders , these are delivered either as a new ticket or loaded onto an existing ticket in a given machine .
Allowing Third-Party Material Because of something as strict as anti-trust legislation or as straightforward as your chosen business model , sometimes you may have to switch off pay-per-use or allow third-party material on your machines . This depends a lot on the specific commercial details of your agreements : If a machine is provided for a set contractual term , the legal or practical constraints might be different than if the actual ownership changes hands when the machine is sold .
Technically , both situations can easily be addressed by CodeMeter . A third-party license can let your machine decide whether third-party material can be processed on it . You simply sell this license at a price of your choosing ( or even free of charge ).
Switching off pay-per-use is also simple : Code- Meter treats a license without a unit counter as an unlimited license . It can be used as if it had an infinite number of units left . You simply create the right license and the restriction is eliminated ; no change in your software is required .
Opportunities and Threats Introducing pay-per-use models offers many long-term benefits , but also entails certain risks in the short term . There is an initial drop-off in revenue as clients pay less upfront . In practice , the new model is ideally introduced in a new market segment or for a new product . This prevents the new revenue source poaching from existing processes , and it enables you to test the waters and see whether the new model is accepted by your clients without putting your business at undue risk .
Should you allow your clients to choose between traditional licenses and pay-per-use licenses ? The answer is : It depends , on your target group . Typically , such flexibility will only pay off if it attracts substantially more new clients .
Conclusion CodeMeter offers licenses with unit counters and automated processes in CodeMeter License Central for an optimal solution that makes pay-per-use models just as simple to handle as permanent or subscription licenses . At the same time , you are free to choose your favorite secure element for storing the licenses : CmDongle , CmActLicense , server in the LAN or in the Cloud . The processes to create or renew licenses are easily integrated or automated . Switching between license models is always possible by creating the right license . Whatever your needs , CodeMeter gives you complete flexibility without compromising your control over your licensing models .
10