Costs saved – until Date of Sale [ EUR ]
Present Value of Net Margin Increase and Initial Costs [ EUR ]
Large & Medium Large & Medium [ TEUR ]
Large Medium
Small SW
Small HW
2,142,900 952,900 104,600 92,900
Start-up Costs [ EUR ] -599,700 -235,500 -14,000 -14,000 ROI 357 % 405 % 745 % 661 %
Discounted and Risk Adjusted Free Cash Flow Over Time [ TEUR ]
2.500 250
2.000
1.500
1.000
500
-500
-1000
0 0
Costs and gains
5.000
3.000
2.000
1.000
-1.000
SoS 1 2 3
Large Medium Small SW Small HW
6.000 600
1375 4.000 400
3553
|
|
741 |
|
|
|
0 |
-546 |
-215
-258
|
22
-14
-14
|
22
-14
-30
|
0 |
-1071
460
-2.000 -200 Large
Medium Small SW
Small HW
Initial Start-up costs sum 2023 - 2026 Wibu Systems Licensing costs 2023 - 2026 Revenue increase 2023 - 2026 Cost savings 2023 - 2026
124 124
200
150
100
50
-50
-100
500
300
200
100
-100
Small SW & Small HW
Small SW & Small HW [ TEUR ] container bought . Customers who want to automate license creation and deployment also order CodeMeter License Central and License Portal and sometimes need support assistance .
By introducing the CodeMeter licensing technology , the companies had a chance to markedly increase their revenue , especially by significantly reducing the number of illegal copies – approximately 15 % in several markets . This is shown in table 3 .
Table 4 shows how the CodeMeter licensing solution also reduced costs by a considerable margin by integrating everything perfectly with existing internal processes . The complete automation of the license creation and provisioning part led to a massive reduction in operating costs .
ROI calculation and analysis For our next step in trying to understand the ROI , we looked at the results from the first three years after CodeMeter was introduced and compared them to the running costs . This produced the so-called net margin increase that comes from operating a CodeMeter licensing solution .
Since no one can really predict the future , we added a blanket risk adjustment factor of 20 % to the net margin increase . To calculate the present value , we used an internal rate of return of 10 %.
When we compare the gains against the costs , we can find a clearly positive ROI in all four cases .
Finally , our calculated ROI has revealed that CodeMeter was an extremely good investment in all four instances . The initial costs paid off within a year and significantly increased revenue in the long run , making CodeMeter the convincing choice for companies that want to optimize their software licensing and security performance .
Costs and gains over time These ROI calculations for Wibu-Systems ’ software licensing solution are impressive proof of the financial advantage that comes with choosing a professional licensing and protection system . And the added value of such a system lies not just in its ability to monetize software effectively : Companies gain far more , in the form of a stronger competitive advantage and in the form of long-term commercial health and viability .
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