Cost savings �
�
�
Number of licensing order-taking Reduction of licensing order-taking
[ FTE ] [ FTE ]
FTE cost per Order-taker 65,0 [ TEUR ] Cost savings licensing order-taking [ TEUR ]
Number of legacy licensing developers Reduction of licensing developers
[ FTE ] [ FTE ]
FTE cost per developer 100,0 [ TEUR ] Cost savings development [ TEUR ]
Number of legacy support experts Reduction of support experts
[ FTE ] [ FTE ]
FTE cost per supporter 70,0 [ TEUR ] Cost savings support [ TEUR ]
The fundamental figures and insights gleaned from our interviews with our clients form the basis for these calculations .
We started by first adding up the initial investment needed to put in place the specific licensing system . That includes the cost of the protection software and the effort to program and integrate it into an existing process landscape .
During routine operations , there are additional costs for providing the CodeMeter license containers for each unit of software sold .
On the plus side , we find revenue increased by the reduction of illegal copies and by the effective protection of intellectual property , which helps sell more legitimate licenses . There is also the option of offering flexible pricing models , matched more to the end user ’ s needs . Novel pricing models can generate entire new revenue streams .
Start-up Costs – until Date of Sale [ EUR ]
Total Cost savings [ TEUR ]
Illustration 3 : Potential savings
License fees for CodeMeter Protection Suite
Large Medium
Small SW
Small HW
-1,200 -1,100 -800 -800
Wibu-Systems Professional Services -39,000 -13,000 0 0 Wibu-Systems Academy / Training -5,000 0 0 0
ISV development costs for integrating CodeMeter in the client ’ s software
ISV development costs for integration into the back office system ( ERP )
-150,000 -50,000 -12,000 -12,000
-350,000 -150,000 0 0 Total -545,200 -214,100 -12,800 -12,800
Wibu-Systems Licenses – until Date of Sale [ EUR ]
Large
machine sales , in a modular business model . They chose a combination of software , hardware , and cloud licenses . The largest client we interviewed sells a popular ERP software .
Costs and gains The companies we looked at reported the startup costs shown in table 1 to get their systems up and running .
Table 2 covers all operation costs of the licensing system . Every sold and licensed piece of software needs a license container . Depending on the chosen model , these fees could either be calculated as a flat sum , chosen to mirror the client ’ s revenue with the software , or calculated precisely as unit costs per license
Medium
Small SW
Small HW
Total operation costs -1,071,000 -258,000 -13,900 -29,500
Table 1
After the introductory phase , the ability to automatically roll out licenses can help save running costs . The integration of the licensing technology can also reduce development costs , because CodeMeter offers a streamlined , uniform solution , which keeps admin efforts consistent and efficient and will eventually bring down service and support costs .
A look at real-life use cases We analyzed every one of the four clients individually . One of the two smaller customers sells a specialized simulation software while the other wants to protect their intellectual property in the form of 3D printing data . In the former case , licensing was approached by way of computerbound licenses ( CmActLicenses ), while the second company ’ s 3D data was protected with hardware secure elements ( CmDongles ). The third use case is a medium-sized mechanical engineering business who wanted to monetize their machine operating software , formerly simply part of the on-board package of their
Revenue Increase – until Date of Sale [ EUR ]
Revenue increased by preventing illegal copies
Revenue increased by expanding the market ( IP protection )
Revenue increased through novel , flexible licensing models
Large Medium
Small SW
Small HW
1,755,000 315,000 10,800 10,800
585,000 157,000 7,200 7,200
1,213,000 269,000 10,800 10,800 Total 3,553,000 741,000 28,800 28,800
Costs saved – until Date of Sale [ EUR ]
Large Medium
Small SW
Small HW
Savings in order processing 300,000 112,000 39,000 39,000 Savings in development 875,000 188,000 85,000 85,000 Saving in support 200,000 160,000 0 0 Total 1,375,000 460,000 124,000 124,000
Table 2
Table 3
Table 4 17