Flexera Software Uses Cloud Licensing Service to Protect FlexNet Connect Add-ons

Customer Profile:

Flexera Software helps application producers and enterprises increase application usage and the value they derive from their software. Their nextgeneration software licensing, compliance and installation solutions are essential to ensure continuous licensing compliance, optimized software investments and to futureproof businesses against the risks and costs of constantly changing technology.

Challenges and Needs:

  • Losing revenue due to piracy and lack of protection of software add-ons
  • Customer activation process was complex due to the need for multiple activation IDs

Solution:

Flexera Software implemented FlexNet® Licensing and FlexNet® Operations along with the FlexNet® Cloud Licensing Service in their software update solution— FlexNet Connect®—to protect revenue by ensuring only entitled customers had access to the add-ons, simplify product activation and make licensing transparent.

Benefits:

  • Captured lost revenue by monetizing add-on modules
  • Simplified product activation
  • Provided users with a transparent licensing experience
  • Included flexibility to monetize FlexNet Connect in new ways in the future

Protecting and Monetizing Add-on Modules Was Key to Ensuring Product-line Profitability

Flexera Software sells Software Monetization solutions that help application producers’ license, activate, deliver, update, and manage the lifecycle of customer use rights. FlexNet Connect, part of their solution, enables application producers to gain insight and stay connected to customers with software and firmware updates, in-product messaging and installed base reporting. FlexNet Connect includes a base product and two add-on modules. When FlexNet Connect introduced two new add-ons they were not protected with licensing. As a result, Flexera Software was losing revenue from customers who were using add-ons that they were not authorized or entitled to use. Flexera Software knew they needed to add licensing to protect and monetize their intellectual property. They had three main licensing goals:

  • Ensure only entitled (paying) customers had access to the add-on modules/li>
  • Simplify the product activation process/li>
  • Provide their enterprise customers with a transparent software licensing experience

“We knew we had to add licensing to FlexNet Connect to ensure only entitled and paying customers had access to the add-on modules. The question became what was the right deployment model to ensure we provided our customers with a transparent licensing experience. We determined that moving to a cloud licensing service model was best for us and our customers. It provided us with ability to easily protect and monetize our add-ons and it simplified the customer’s licensing and activation experience, a win-win for both.”

Scott Niemann, Product Manager, Flexera Software

Licensing Ensured Only Entitled had Access to Add-on Modules

The first step Flexera Software took in protecting and monetizing revenue from the FlexNet Connect add-ons was to instrument licensing into FlexNet Connect. Once their back-office entitlement management system was integrated and they activated the cloud licensing service, licensing became transparent to their enterprise customers, revenue leakage was plugged and only paying customers had access to the add-on modules.

Cloud Licensing Service Eliminated Complex Activation Process

Prior to implementing the cloud licensing service the FlexNet Connect product activation process was complex due to multiple activation IDs. Their process required the enterprise to get additional activation keys when they purchased an addon or upon license expiration. These tedious activation processes lead to frustrated customers, who simply wanted to benefit from the value FlexNet Connect delivered, not the complexity of getting it operational.

With their new licensing and entitlement solution in place they were able to simplify the customer experience by reducing the number of activation IDs required to activate the modules – now regardless of the number of add-on modules customers purchased, only a single instance ID is required; when new modules are added, their customers no longer have to go through an activation process, they will automatically activate on the next call to the cloud licensing service; and lastly if their customers buy a subscription and the license expires they will automatically get a new expiration date on the next call to the service (previously they would have to go through another activation process).

Enterprises Benefit from a Transparent Licensing Experience

“Since implementing the cloud licensing service, both our FlexNet Connect Cloud and On-Premises customers are able to get our software up and running quicker, plus they are able to ensure they are in compliance with license agreements,” shared Niemann. “Now that our FlexNet Connect On-Premises customers do not have to install a local licenser server, they are saving infrastructure costs as well as the time and resources required to bring up, maintain and support a local license server. This is a huge savings for our customers,” explained Niemann.

Poised for Growth

Niemann closed in saying, “The flexibility that FlexNet Licensing, FlexNet Operations and the FlexNet Cloud Licensing Service enables for monetizing and managing FlexNet Connect licenses, its modules and additional services is unmatched. Down the road we will be exploring the move to usage-based licensing and pricing. We are confident that the licensing and entitlement management solution we implemented will empower us adopt new models and processes to support our customer’s needs.”

Lastly, in the future Flexera Software plans to leverage usage information that is collected in the cloud licensing service to proactively reach out to customers that have not used the software/service in the last 30-45 days and determine the root cause. This proactive outreach will help them ensure high maintenance and subscription renewal rates based on continued usage and customer satisfaction.

About Flexera Software

Flexera Software helps application producers and enterprises manage application usage and increase the value they derive from their software. Our next-generation software licensing, compliance, security and installation solutions are essential to ensure continuous licensing compliance, optimize software investments and futureproof businesses against the risks and costs of constantly changing technology. Over 80,000 customers turn to Flexera Software as a trusted and neutral source for the knowledge and expertise we have gained as the marketplace leader for over 25 years and for the automation and intelligence designed into our products. For more information, please go to: www.flexerasoftware.com.