KEYnote 41 English - Spring 2021 | Page 10

ERP
CRM
Gateway
E-Commerce
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Auto Update Wizard
Protected and Licensed Software for this operation can be provided via Web- Depot .
The Vendor ’ s Perspective The interesting side of subscription models can be found with the software vendor : The possible commercial options and technical requirements are endless and allow for lots of creativity . The only common denominator is that there needs to be a way to let licenses expire or renewed with a new expiration date .
In most cases , users will enter an explicit subscription contract , which defines when the next renewal can and should be bought . The renewal can be done either by invoicing the user or by automatically charging their accounts . If users do not want the software anymore , they need to actively cancel their contract and can then continue to enjoy their software until the end of the subscription contract .
Automatic Extensions via an ERP System
For this setup , the ERP system needs to know exactly when the next subscription payment is due . When the software is first bought , a license is created by CodeMeter License Central and given a fixed expiration date ( optionally with a certain grace period ).
As long as the subscription remains active , a new license is created with each payment or whenever a cancellation deadline passes . This license then simply replaces the old , expiring license .
Automatic Extensions with the Renewal Concept
The renewal concept works by creating licenses that are valid for a defined period of time , which is configured in the item within Code- Meter License Central and given a specific expiration date . In a subscription model , the user would then have to regularly renew the license via CodeMeter License Central . As described above , this can be done either by sending the users a timely reminder or – even better – by automating the entire process to work from within the software itself .
Should a user cancel their subscription , the backend system in charge creates a new license , with a fixed expiration date set to the end of the final period of use the user paid for . When the license renewal comes up again , the renewal mechanism is ended , and the license becomes a simple temporary and expiring license .
For the vendor ’ s workflow , this acts just like an unlimited license , which is only transformed into a regular time-limited license upon cancellation of the subscription . The difference is that the renewed license is technically always time-limited , which prevents fraudulent use from the get-go .
The 365-Day Mechanism Since it was first introduced by some of the big names in the software industry , this model has steadily grown into a fan favorite , continuing the success story of similar models that were long used by leading game console makers .
The beauty of this mechanism is the choice of sales channels it gives the vendor : Users can buy a renewal for a new period to add to their existing license wherever they prefer . Once they activate it , there is no way back , that is , the renewal is bound to the specific license and not a user . This takes away a certain quality of customer relationship for the vendor , but it also means that no special sales structures need to be put in place to maintain such a direct transactional relationship . Activation codes could just as easily be sold at supermarket checkouts .
Users can also choose to enter a contract for automatic renewals when they activate their first period , taking us back to the active license renewal via the ERP system . The only difference here is that the expiration date is calculated from the software ’ s first activation and not from its original sale .
Conclusion Subscription models come in all shapes and sizes , and the relationship they create between vendor and user can take many different technical forms . CodeMeter and its ability to enforce license expiration dates are a great way to realize many of these setups , and Code- Meter License Central works perfectly with many popular back-office systems to make finding the right sales structure for a subscription model an enjoyable and creative experience .
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