New Licensing Schemes

We are reevaluating our software licensing approach. As you know, we currently use a USB HASP4 hardware key (dongle) made by Aladdin to protect our software. There are two types of keys: a red colored one for network versions, and a blue colored on for single licensed versions.

We have heard both good and bad reports about dongles. Users have enjoyed the fact that they can install the software on multiple computers and simply transfer the dongle to whichever computer they happen to be using at the time. Users have complained about the fact that they have to keep track of the dongle and make sure it doesn't get lost, or "walk away". Users have also complained about the dongle getting damaged or damaging their laptop USB port when smacked.

From our point of view, the dongle is a very secure protection device, but it is costly, it has to be programmed for each user, it has to be shipped, is can be faulty, it has limited marketing strategies, and technical support is through a 3rd party.

Here are two licensing schemes we are considering so far:

1. Hardware Specific License - users check out a soft license tied to their specific computer hardware through either a semi-automated online service, or email service.
2. User Login License - users must login and remain online during use. We could easily manage multi-seat and timed licensing schemes with this method. It might be restrictive to users on the road alot, however we could offer a low cost hardware specific licenses for their designated travel laptops, or something of that nature.

With a combination of the above two options we could offer more flexible licensing arrangements with a wider range of pricing opportunities. For instance, with the User Login License we could offer the option to rent Flexsim on a monthly basis during the period a user is working on a specific simulation project. This would be an affordable option for small consulting firms. The Hardware Specific License could also be a low cost option because it is checked out to a specific computer for a specific time period. With the User Login License, customers can start with one or two license and then easily add additional seats over time with very little hassle. All their seats would have automatic upgrade capability throuugh the internet connection as new versions of Flexsim are released.

We would like to hear your feedback on this issue, so please post a reply if you have an opinion, and please vote in the above poll for the licensing scheme you like the best!

Hi Cliff,

We have are had a small discussion here and we have a problem with the hardware specific license. Windows/office uses the same scheme. For the user this gives problems when:
1 You accidentally install on the wrong machine
2 You buy a new machine
3 You install a new piece of hardware.

For us/you it gives problems because you have to spend time on any of these things occuring and if someone says he has done any of the above, there is no way of checking if that is really the case or if he just wants a second license! So this method is simply not failproof!

A combination of dongle and a user login license would be perfect we think. It is failproof and gives you a lot of flexibility and I think that Internet access, even on the road, will become more and more the standard with the data flat fees that are comming up.

Concerning the points you mention about losing or breaking the dongle or the dongle breaking the USB port is not the fault of the dongle or of Flexsim so this would not be a reason to change the complete system.

The other points you mention are valid points so my opinion would be that you can offer the dongle protection at a little extra money.

Regards,

Steven

PS So my combination is not available in the poll, so I can't vote now

Hi Cliff,

After have thought about this and here is my opinion.

I prefer the dongle, I can take the dongle with me and run Flexsim on which computer I want there I have Flexsim installed on.

The User Login alternative is not I will recommend.

The problem with User Login is that you always need to have internet connection. Here in Sweden I am not
allowed on most companies to use my own computer on their network.
Then I need to use a computer from them or using mobile internet connection.
The problem with mobile internet here in Sweden is that it works best in big cities like Stockholm,
Gothenburg and Malmo when going out in the country you will have very bad or no connection.

Last thing regarding User Login, is that the server customer logins into need to available all the time (24 hours a day),
this means that if a the server went down let say 9 am Swedish time, we can not wait until you
open your office to fix it. So you need always have one person stand by to fix any problems to
the server and that will probably cost you more then the dongles.

If I need to choose between Hardware and User Login, then I would say hardware but as I wrote first I wote for dongle.
As Steven wrote, keep the dongle even if you change the licensing to something else and let the user pay little more for
the dongle if you are concerned with the cost for the dongles.


The most important thing if you planing to change the licensing is not to hurry.


Regards,
Lars-Olof

Lars-Olof,

I agree with what you have written but that is looking at it from a perspective of 1 person having a laptop. If you look at a company having a network license and want to have a dynamic license (for instance normally 3 licenses but in some periods they might want to have 10) that is very difficult to do with a dongle but quite easily with a user login. And that company with a server is probably always connected to the internet so that is not a problem either. So the user login gives the flexibility to create new types of licensing schemes.

What remains are your remarks about the stability and uptime of the server. That should be taken care of very very good.

Steven

Originally Posted by Steven Hamoen

Lars-Olof,

I agree with what you have written but that is looking at it from a perspective of 1 person having a laptop. If you look at a company having a network license and want to have a dynamic license (for instance normally 3 licenses but in some periods they might want to have 10) that is very difficult to do with a dongle but quite easily with a user login. And that company with a server is probably always connected to the internet so that is not a problem either. So the user login gives the flexibility to create new types of licensing schemes.

What remains are your remarks about the stability and uptime of the server. That should be taken care of very very good.

Steven

You are correct that I was writing more from my point of view.

The biggest problem to found a good licensing system is that every country/market is different, a licensing system that works good in one country may not work as good in another country.

But my biggest concern is the uptime and stability of the login server. If the server goes up and down and takes time to restart (Flexsim restart the server), Flexsim will loose more on that when the cost for the dongles.

I can also see the benefits to use User Login approach, as I you write they have 3 licenses and need 10 then the User Login is one of the better ways to go. To replace the network license the User Login is probably one of the better solutions.

Cliff, have you consider to use FlexLM for the licence?
We are using UGS/Siemens NX they use FlexLM for their licensing and in FlexLM you have the option the check out a license for a time of period. For example if I go away for 3 days I can check out the license for 3 days and after 3 days the license is automaticly checked back to the server.
In FlexLm you can also create licence files which is only working for a period of time (30 days).
The draw back of FlexLM is that Flexsim need to create the license file for the customer FlexLM server when the number of license changes.
There are probably more problems and draw backs to use FlexLM.

I think you need to see the licensing from 2 perspective.

• The first one is a flexible licensing system for a customer who normally use a network license and sometimes you need more licenses for a short time of period. User Login approach.
• The second one is more for the consultant type of work where you need to be sure that you can use Flexsim all the time. Dongle (maybe hardware approach).

You will probably not find one solution that works for both perspectives.

Regards,
Lars-Olof

My suggestion is that we have some combination of the hardware specific and user login license. A user should be able to "check-out" a license from Flexsim's server, and once the license is checked out, he no longer needs an internet connection to run Flexsim, but the license is locked to that hardware. Then later on he can "check-in" that license back to the main server, which disables the license on his computer, and check it out to another computer. This will allow you to easily transfer licenses between computers, giving you the flexibility of the dongle, without needing the actual dongle. It's similar to FlexLM, but there's no idea of a timer based thing. You just check a license out, and you then have that license until you check it back in. The problem is making sure that this is secure, that once the license is checked back in, it is indeed disabled on the original computer, and that users can't hack it, which is a pretty tough task.

Anthony,

I like the scheme as you propose. It gives flexibility in all directions.
But one possible problem is what happens if you can't check it back in? What if someones laptop gets stolen or crashes while the license is checked out. Very difficult to check if it is true or not.


Steven

Yeah, that's the problem with that one. We'd just have to trust that they are telling the truth and give them another license, but it's not that much different than if a hasp key breaks or gets stolen.

Sorry, for putting my opnion at such a late timing.

I have come across the adminstration of network license by the user. The end user will check out the license from their license administrator. So it will not be the responsibility of Flexsim to adminstrate for the licensing. Another advantage is especially for School to administrate the licenses for the different project groups, students could use the software when they are off the campus. The licensing could be timed say for 6 months, so after 6 months the license will be able to use and the license is check in back to the server at the adminstrator.

David