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Software Monetization: Post-Acquisition Software LicensingSeptember 26, 2012
By Erin Harrison, Executive Editor, Cloud Computing
While acquisitions bring many benefits – including an expanded customer base and more revenue – they can also bring along a fair amount of baggage.
In some cases, the acquiring companies will inherit homegrown software licensing systems that might be totally incompatible with their own. Despite this challenge, it is still possible to expand – and without the additional headache of managing disparate licensing systems. In a recent blog post, Alexandra Lating, assistant product marketing specialist in SafeNet’s (News - Alert) software rights management division, provided a synopsis of a relevant software licensing case study.
Sage – an international business software, services and support company working primarily with small and medium sized businesses – had acquired other companies over the years, which allowed the firm to continue to expand globally. However, these acquisitions also led to multiple homegrown licensing systems that did not work cohesively, according to Lating.
“Sage is an expert on our customers and internal process; however, we needed a system that would also protect against anti-piracy and simplify the modeling of new products. Our former licensing systems did not solve this problem,” explained Ingo Sievers, marketing director at Sage.
According to the case study, SafeNet Sentinel RMS streamlined Sage’s back-office systems, creating harmony for the growing company. In addition, Sage used the capabilities in the Sentinel product to create flexible licensing models for their customers. “Sentinel RMS is extremely flexible, our customers can buy the modules of our software that they need for the way they really needed it,” Sievers said.
Sievers also noted that, after implementing Sentinel RMS, Sage was also able to discover additional untapped revenue opportunities.
“The customer registration process brought a lot of licensing history to the surface and exposed many unregistered customers,” Sievers said. “We were able to generate additional business by clearing up the discrepancies with these customers and receiving the compensation we were owed.”
While acquisitions can help businesses grow, there are ways to make sure they do not create serious challenges with your back-office.
To learn more about how Sage and other companies implemented SafeNet Sentinel RMS to streamline their back-office, click here.
Edited by Peter Bernstein
Software Monetization Resource Center:
Learn about these core elements to a complete software monetization strategy:
- Case Study: Iritech increases sales, secures its competitive edge, and flexibly expands into new markets using hybrid instance of Sentinel HASP
- Webcast: How to Sell More Software Using Trialware
- White Paper: Addressing New Challenges in Software Protection with .NET
- White Paper: From Hack to Counterattack: A Guide to Protecting Software Products Against the Top 8 Piracy Threats
- White Paper: Understanding White Box Cryptography
- Webcast: 7 Traits of Licensing Champions
- White Paper: How to Get SW Licensing Right the First Time
- White Paper: Build vs. Buy
- Video: Software Monetization in the Cloud: Navigating the Top 6 Cloud Blocks
- Video: Introduction to Cloud Licensing
- Webcast Series: Let's Do It In the Cloud (2011)
- Webcast Series: Navigating the Cloud (2010)
- White paper: Best Practices for Transitioning On-Premise Software Business to the Cloud
- White paper: Cloudy with a Chance of Insight: An ISV's Guide to Customer Usage Data Collection and Analysis in the Cloud
- Report: Frost & Sullivan Global Software License Management Market Report 2011
- White Paper: SafeNet and IDC Present a Lifecycle Approach to Software Licensing and Entitlement Management
- Case Study: Following Several Acquisitions, Sage Implements Sentinel RMS to Harmonize a Multitude of Disparate Licensing Systems
- Video: Software Licensing Operations
- Video: Cleaning up the Back Office
- Case Study: Vero Software Simplifies Distribution and Reduces Costs with Sentinel RMS
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