Software Monetization Featured Article

Pricing Differently: Gemalto's solution for Mobile App SDK Licensing

December 08, 2017

There’s a growing demand for SDKs that can be embedded into other solutions. There’s also a need to transform how SDKs are priced. But part of the challenge in that is getting an accurate measure of consumption on the final solution. In a presentation at the recent LicensingLive! 2017 event, Todd Steel and Vickie White explained how Gemalto is addressing all of the above.

The old was of licensing is using the perpetual model. Then there’s the newer subscription-based pricing. But that’s not a great match for SDK solutions either. A better way is to sell SDKs based on consumption, said Todd Steel, Director of Product Management, Software Monetization at Gemalto (News - Alert). But, to date, getting a handle on consumption was been more of a guessing game than a science.

However, Steel says, Gemalto brings precision to usage measurement, and the licensing and authorization process as a whole, with its Sentinel product line. Sentinel EMS is an entitlement back office system that automates licensing back office processes. Sentinel RMS is Gemalto’s rights management solution. And Sentinel Fit is a software licensing system designed for embedded environments.

White, Director of Virtual Products at Gemalto, presented a case study of how Sentinel helps enable an ebanking application.

Gemalto’s eBanking business unit designed an SDK that financial institutions could use to create mobile banking applications. This SDK would allow for authentication via biometrics/face ID technology. And Gemalto employed third- party provider’s facial recognition technology into that SDK.

Rather than building the solution from the ground up, the eBanking unit employed Sentinel. That not only allowed it to deliver the SDK offering at a lower cost and get it to market faster, it also makes sure everybody gets billed and paid for what they contributed, and it maps those payments to actual consumption of the mobile banking app as it happens.

Here’s how it works. The bank inputs a purchase order. Sentinel EMS creates an entitlement for that and then sends a communication to the customer to download the SDK to be embedded in their mobile app. Gemalto then gets an alert that it can bill the bank and pay its third-party partner involved in providing a piece-part for the SDK. The bank deploys the app, users use it, and every time someone signs up/employs the app that triggers a call to Gemalto’s back office. As a result, Gemalto can see when a bank customers is actually enrolling to use the bank app using Gemalto’s SDK.

Implementation of this solution took around 7 month. And, as desired, it delivered the key result – which was the ability to charge customers based on the actual number of end users, which they previously had no way to verify or control.

Watch the presentation here

Edited by Maurice Nagle