Business Models

In this section, we briefly describe some of the popular business models you can implement with each enforcement technology.

Business Models Supported by Sentinel RMS

The table below lists the business models that you can create using Sentinel RMS. For more details, refer to the Sentinel RMS Developer Guide:

Model	Description	Deployment Mode
Time-based Business Models
Evaluation	Commonly known as Demo, Try and Buy, and Trialware. Evaluation licensing models are marketing tools, providing potential end users with the opportunity to test software without making a financial commitment. These are useful when you want to offer secure versions of your product for a short time, allowing end users to try the product before buying it. When an end user subsequently decides to purchase the software, you can allow conversions to any of the paid licensing models without reinstallment.
Perpetual	The most-common enterprise licensing model for on-premises installations. Usually requires one-time upfront payment, after which the end user owns it forever (in perpetuity).
Subscription	Enables product use for a specific period (monthly, quarterly, and so on) with a low upfront cost. The buyer never owns the software; therefore, the possibility of license renewal with recurring payment is usually planned out in advance.
Number of Users-based Business Models
Node-locked	Licenses are restricted for use to specific machines, users, or devices. The machine identifiers of specific clients or License Manager hosts are used to enforce the license.
Floating / Concurrent	A limited number of licenses for a software application are shared among a number of users over time. In a client-server environment, a licensed application can be installed on many machines, but the license resides only on RMS License Manager or a cloud server such as SCC. The same license can be used simultaneously by multiple users or workstations, provided the total number of users remain within the set limit.
Feature-based Business Models
Multi-feature	Also known as Pay-per-feature and Multi-module. Lets you mix and match the different software features (various functionalities) based on an end user's need and budget. This can be useful in many scenarios; for example: >If the basic software is provided with a perpetual license, you can license additional features separately and make them available at a charge. >You might want to offer various feature and upgrade levels—for example, Student, Light, Standard, and Professional versions. >Your software is customized to display or hide functionality depending on the requirements of different end users.
Network Business Models
Commuter Mobile	A licensing scheme that can accommodate a floating license along with the organization's mobile workforce. Here, licenses can be temporarily detached from the RMS License Manager to enable offline use of the software. For example, when employees leave the office to work off site, they can take their laptops with them and continue using the licensed software locally for an allowed number of days.

Business Models Supported by Sentinel LDK

The table below lists the business models that you can create using Sentinel LDK. For more details, refer to the Sentinel LDK Software Protection and Licensing Guide:

Model	Description
Evaluation Business Models
Trialware	Trialware provide potential end users with the opportunity to test software without making a financial commitment. You can offer fully functional software for a limited time period (typically between 1 and 90 days) or limited number of executions (typically 30).
Execution-limited Evaluation	Evaluation software that is restricted to a predetermined number of executions. The evaluation software can be distributed with a Sentinel SL key—for example, via a Web site or on a demo CD. Alternatively, it can be distributed with a Sentinel HL key, providing maximum security.
High-security Time-limited Evaluation	The time-limited evaluation software is distributed, protected with a Sentinel HL key for maximum security. Due to the extra cost of providing software with a hardware-based Sentinel HL key, this evaluation method is suitable for high-end software or for software with a high evaluation-to-purchase conversion rate.
Demoware	The demo version of the software is limited to a subset of the functions provided in the fully licensed product. Demoware can be distributed either with a Sentinel SL key (for example via a Web site or on a demo CD), or with the superior protection of a Sentinel HL key. Demoware provides prospective end users with limited software functionality, at no charge. Even if the end user does not subsequently purchase the software, the demoware is not discarded, serving as a constant reminder that more powerful functionality can be purchased.
Component-based Business Models
Module-based	Each module (executable file) is licensed separately. Assorted software can be bundled into a suite, including software from other software vendors. The license for the entire suite is supplied on a single Sentinel protection key.
Feature-based	Software components or functionality are licensed separately in many different scenarios such as: >Basic Software with Add-ons Your basic software is provided with a perpetual license. Additional features are licensed separately, and are available at a charge. >Software Levels Different levels of your software are offered—for example, Student, Light, Standard, and Professional versions. The protection method determines which components are active in each version.
Metered Business Models
Time-limited Rental	The end user pre-pays a fee for a specific period, either for a predetermined number of days or terminating on a predetermined expiration date. End users can monitor the remaining time using Sentinel Admin Control Center—a Web-based utility for centralized administration of licenses on the end user's site. End users can order a license renewal before the license expires.
Phased Rental	The end user pays a monthly fee, with a phased pricing structure, which can be associated with an entire product or a specific functionality. The transition from one phase to another is implemented using the RUS utility—an end user utility for performing remote updates of the license and memory data of Sentinel protection keys. >Phase 1: A fraction of the regular usage price is charged (micro-payment) for a limited period. This provides an incentive for the end user to enter into a rental agreement for use of the software. If payment is not received for Phase 2, the license expires at the end of the defined time period. >Phase 2: The full monthly rental price is charged, for an indefinite time period.
Micro-rental	The end user purchases a pre-defined number of “usage hours.” When the hours are consumed, a new package of hours is purchased.
Subscription	The end user pays a monthly subscription fee that covers the initial software package plus periodic updates. If the end user does not renew the subscription, the basic package and all paid updates remain the property of the end user. New updates are not provided.
Pay-by-Peak Time (Peak Time)	The end user purchases a pre-defined number of “usage units”. Differential charging is calculated according to the hour of the day or the day of the week in which your software is used. When your software is used at peak demand time, more “usage units” are consumed than at low demand time. This type of license might be applicable in an environment such as a learning facility, in order to encourage students to use resources at low demand time.
Time-based Overdraft	A differential pricing structure is implemented, in which a nominal price is charged for use of your software until a defined expiration date. Following expiration, a higher price may be charged for a limited period, to enable the end user to continue using your software until the license is renewed.
Standard Counter	The end user purchases a pre-defined number of software executions, which can be defined for your software or for specific functionality. An execution-based license might appeal to end users who use your software or a software functionality sporadically, and prefer to pay only when they actually run your software or use the functionality. End users can monitor the remaining executions using Sentinel Admin Control Center, and can order a license renewal before the license expires. The license renewal is implemented using the RUS utility.
Phased Counter	The end user purchases a pre-defined number of software executions, which can be associated with all of your software or a specific functionality. The pricing structure is phased, and the transition from one phase to another is implemented using the RUS utility. >Phase 1: For a limited number of executions, the end user pays a fraction of the regular usage price (micro-payment). This provides an incentive for the end user to start purchasing executions. If payment is not received for Phase 2, the license expires when these executions have been consumed. >Phase 2: The end user pays the regular price for each software execution.
Capacity (CPU/Memory/Disk)	License consumption depends on utilization of resources—for example, CPU usage or disk space. The more resources the end user consumes, the sooner the license runs out. This type of license might be applicable in an environment such as a learning facility, in order to limit the resources consumed by students.
Unlimited Activations for Integrators	In this scenario, you are licensing an SDK to an integrator who will include the SDK in a product that is sold to the integrator's customers. You want to protect the SDK, and you want to enable end users who are buying the integrator's product to easily activate the license for the SDK using a product key—a string that is generated by Sentinel EMS and supplied to the end user for activation and updates. To simplify the activation process, you issue a single product key for the integrator that has been defined to allow an unlimited number of activations. To monetize your product, you generate a periodic report that indicates how many times the product key was used to activate licenses during the billing period and charge the integrator accordingly.
Locked Business Models
Machine-locked	The license can only be used on the machine on which it was installed. The license can be locked to: > A Sentinel SL key >A Sentinel HL key >Both a Sentinel SL key and a Sentinel HL key
User-locked	The license can only be run by a specific logged-in end user. A user-locked license ensures that only an entitled end user can activate your software. This model can be particularly useful when your software resides on a server, or is activated by a remote end user.
Mobile Business Models
Portable	Your software can be installed on any number of machines, providing flexibility, but can only run on the machine to which the Sentinel HL key is connected.
Commuter	A license can be temporarily detached from a network pool to enable off-line use of your software. For example, when employees leave the office to work off site, they can take their laptops with them and continue using the protected software locally.
Software on a Key	Both your software and the license are stored on a Sentinel HL Drive microSD key, providing maximal mobility. The Sentinel HL Drive key contains up to 64 GB of flash memory on a microSD card in addition to the license data memory, enabling all of your software to reside on the key. This method is applicable for software that can be run from an external key without necessitating installation on a hard disk. This method can be applied to all license models for which a hardware-based key is used.
Network Business Models
Limited Concurrent End Users in a Network	A concurrency-limited network license limits the number of end users concurrently accessing the licensed application in a network environment, preventing additional activations and unintentional piracy if the maximum number of allowed concurrent licenses has been reached. The same license can be used by more than one end user or workstation, so long as the total number of users remains within the concurrency limit.
Time-limited Concurrent End Users in a Network	A combined concurrency-limited and time-limited network license restricts both the number of end users concurrently accessing the licensed application in a network environment and the period during which the license is valid. The same license can be used by more than one end user or machine, so long as the total number of users remains within the concurrency limit.
Execution-limited Concurrent End Users in a Network	A combined concurrency- and execution-limited network license restricts both the number of end users concurrently accessing the licensed application in a network environment and the total number of executions for each license. The same license can be used by more than one end user or machine, so long as the total number of users remains within the concurrency limit. The number of executions is calculated across the network, regardless of which end user runs your software or on which machine it is run.
Volume	A volume license enables you to sell a pool of licenses to an organization, without requiring product activation on every machine, while still enforcing the maximum number of installed workstations. A license can be temporarily detached from the network pool to enable off-line use of your software. In this case, a client machine periodically detaches a time-limited license at pre-defined intervals—transparently to the end user. The license is installed locally and remains usable even if the network connectivity is lost, as long as the detachment is still valid.
Site	A site license is a license that is locked to a specific domain, network, or subnet. A site license can be combined with any of the licensing models in this guide.
Sales Boosting Business Models
KickStart (Quick-delivery Grace)	Locking a license to a Sentinel HL key provides a higher level of security than locking to a Sentinel SL key, but delivery of the Sentinel HL key to an end user can take time. This model enables you to electronically supply your software with a quick-delivery license locked to a Sentinel SL (software) key (“KickStart license”) as soon as an order is processed. For increased protection, you may choose to limit some software functions in the KickStart license.
Referral-based Sales	A bonus mechanism that encourages end users to serve as “promoters” for software they find useful. When an end user refers software to someone and a purchase is made based on that referral (based on the information collected during software activation), you give a bonus to the referrer.
Automatic Sales Agent	When an end user purchases a subset of software modules, you can supply a license that includes the option to install additional bonus modules so that the user can experiment with them. Thereafter, your software can serve as its own automatic sales agent, providing the end user with the ability to work with additional modules and encouraging purchase of any modules that are identified as being of interest to the end user.
Perpetual Business Models
Standard Perpetual Licensing Model	The traditional perpetual, unlimited licensing model can serve as a basis for other, more creative marketing strategies. For example, your software is initially supplied with a perpetual license. The end user purchases additional modules as required.
Perpetual Unlocked Licensing Model	An unlocked license protects your application against disassembly and modification, but it is not locked to a specific computer, and no licensing restrictions are applied.