mate and optimize processes for a more efficient administration of the entire software license lifecycle. As the licensing processes are automated, software businesses benefit from the simple creation, provision, updating, and management of their end user licenses. Custom licensing models are possible as well as additional means for monitoring license usage in the field: a powerful tool that keeps the license admin efforts to a minimum without compromising compliance standards. The scalable and flexible CodeMeter License Central system lets software businesses respond dynamically to the changing needs and expectations in the market and easily adjust their licensing strategy and models accordingly.
How to Calculate the ROI
A precise calculation of the Return on Investment( ROI) is critical for a meaningful discussion about the added value of an advanced licensing solution. The following explanation of the methodology illustrates how the ROI was calculated from four extensive interviews with actual users in the market. The underlying figures and other statements drawn from interviews with the leading executives of companies using Code- Meter offer a valid basis for these calculations. The ROI is then determined by taking the initial investment, the licensing costs during active operations, the potential revenue growth, and the expected savings into consideration to get a clear impression of how the solution will impact the user’ s profitability.
The first step addresses the initial one-off investments needed to put the specific licensing system to work. This includes the basic price of the protection software as well as the internal costs for developing and integrating it into established order processing systems. In active operations, certain costs will be incurred for providing CodeMeter license containers for each unit of software sold. These are also included in the calculation.
On the plus side, there is expected revenue growth due to the prevention of piracy and the effective protection of intellectual property, which also helps promote sales of legitimate licensed products. There is also the additional option of introducing flexible pricing models that can be matched more perfectly to the needs of actual clients and help generate new revenue streams.
After the initial introduction phase, automated license distribution can help bring down running costs. Integrating a fully formed licensing technology can also reduce development costs, as developers have access to a standardized and complete package. This also promises more consistent and efficient administration and, in turn, lower support costs.
The ROI calculation is based on a three-year timeframe, since the decision in favor of a software licensing system is strategic in nature and will typically be made for the long term, even though the initial investment itself should reach breakeven as quickly as possible. The three-year period allows the calculation to capture the sustainable effects on operations, profitability, and long-term value creation while also offering a realistic period for calculating the investment decision.
NOTE: For the English localization of this German whitepaper, it ' s important to note that the acronym TEUR is frequently utilized. TEUR stands for thousand euros, and while it is predominantly used in German-
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centric countries, it efficiently conveys the concept in
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Cost Savings
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� Number of licensing order-taking [ FTE ]
01
Reduction of licensing order-taking [ FTE ]
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FTE cost per
Cost savings licensing [ TEUR ]
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65,0 [ TEUR ] Order-taker order-taking
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Number of legacy licensing developers [ FTE ]
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Reduction of licensing developers [ FTE ]
FTE cost per
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01010001010100101010010001010010100101010010101001000 developer 100,0 [ TEUR ] Cost savings development [ TEUR ] �
Number of legacy support experts [ FTE ] Reduction of support experts [ FTE ]
101110101010010101010001010100 FTE-Kosten pro
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Support-Experte 70,0 [ TEUR ] Cost savings support [ TEUR ]
10100101010010101001000101011101010100101010100010101
Total Cost savings [ TEUR ]
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CODEMETER ROI