Monetizing the Lifecycle of Software and Devices...• Enable monetization of capacity / features...
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1 Monetizing the Lifecycle of Software and Devices Vikram Koka VP Internet of Things Flexera Software
Transcript of Monetizing the Lifecycle of Software and Devices...• Enable monetization of capacity / features...
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Monetizing the Lifecycle of
Software and Devices
Vikram Koka
VP Internet of Things
Flexera Software
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Areas to Cover Today
1 Business models: How revenue mix is changing
2 Examples of how Flexera Software has enabled
the change
3 Key takeaways
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Device Manufacturer Business Models are Changing
Physical Physical + Digital
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And So Is Their Revenue Mix…
Past - Physical Future - Physical
+ Digital + Virtual
Current - Physical + Digital
range
Physical Product
80+%
Supporting
Software
1-2%
Services
10%
• Consumables
• Field engrs
• Consumables
• Field engrs
• Software upgrades
Hardware-centric supply chain • Hybrid supply chain • Hybrid supply chain
Solution
60 + 20% Target
40-40%
Services
15%
• Consumables
• Field engrs
• Software upgrades
• Feature add-on
Services
20%
Mgmt
System
Mgmt
System
Mgmt
System
HW IP
SW IP
HW IP
SW IP
HW IP
SW IP
Virtual
SW IP
HW IP
Supporting
Software
1-2%
Supporting
Software
1-2%
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Areas to Cover Today
1 Business models: How revenue mix is changing
2 Examples of how Flexera Software has enabled
the change
3 Key takeaways
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Public Safety Field Devices Provision and Add Capabilities Over Time
Dynamic Feature Enablement
Business Need:
• Accurate feature configuration based on
purchased rights
• Provision field devices quickly and accurately
• Customer visibility into what is deployed
With Flexera Solution:
• Enable monetization of capacity / features
• Upsell capabilities after initial Point of Sale
• Support millions of end points
• Support variety of end points like vehicles,
cameras, video, voice and hand-held devices
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Software
Monetization
(Licensing, entitlement
management and delivery)
Customer Self
Service
Solution that Made it Happen Provision and Add Capabilities Over Time
Mobile Device
Management
Optional Features:
- Blue Tooth
Customer
Portal
Software
Monetization
(Licensing, entitlement
management and delivery)
License
Server
API
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Service Providers Move Capacity as Needed and Avoid Unused Hardware
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Flexible Capacity Deployment for Networks
Business Need:
• Price/sell based on value – enabled subscribers
• Service providers distribute capacity based on
geographic demand
With Flexera Solution:
For Vendor
• Price and sell based on value delivered and not
on boxes
• Enable faster sales and customer lock-in
For Customer (Service Provider)
• Reduce need to forecast accurately
• Increase utilization
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Solution that Made it Happen Move Capacity as Needed and Avoid Unused Hardware
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Device Capacity
Initial Capacity:
60 SD Channels
20 HD Channels
Increased Capacity:
120 SD Channels
40 HD Channels
Total Capacity:
180 SD Channels
120 HD Channels
Embedded
Libraries
FlexNet Producer Suite
for Intelligent Device
Manufacturers
Software
Monetization
Use software licensing
to configure capacity
levels
on devices
Enable customer to
move capacity across
devices while enforcing
total capacity
License
Server
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Service Providers Usage-based Virtual Appliance Models
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Enable Virtual Appliance Models
Business Need:
• Custom hardware to generic hardware + virtual
appliance
• Elastic capacity models
With Flexera Solution:
• Support private, public, and hybrid clouds
• Support high availability for different internet
connectivity environments
• Enable recurring revenue streams
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Solution that Made it Happen Usage-based Virtual Appliance Models
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Usage Reports
Entitlements SKU: VNF1,2,3
License Models Subscr, Perp, Trial, GB
Fulfillments (New, Renew, Trial, etc.)
Customer: Service Provider Producer
IDM Orchestration
Service
License Server
Virtual Network
Function 1
• Apps cannot
be used
without a
license.
• Usage can be
reported back
Client
Virtual Network
Function 2
Client
Virtual Network
Function 10
Client
License
Usage
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Areas to Cover Today
1 Business models: How revenue mix is changing
2 Examples of how Flexera Software has enabled
the change
3 Key takeaways
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Key Takeaways
Changing
Business Models
• Transparency and customer
intelligence
• Flexible value-based pricing,
packaging, and distribution
• Customer self-service and
automation
Increased
Transactions Requires Infrastructure
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Physical Physical + Digital
Questions?
