How Hardware Vendors Monetize Like Software

Saugatuck recently caught up with SafeNet, a 30-year old company with 3 lines of business: authentication, encryption, and software monetization. SafeNet’s Sentinel Cloud and other software monetization solutions currently enable Cloud, on-premises, hybrid and embedded solution vendors to manage over 100 million license keys.coins

Ironically, SafeNet’s biggest challenge in its monetization business is increasing market awareness. Why? Historically, SafeNet has been a security solutions provider to government agencies and Fortune 500 companies, flying below the radar for exactly those reasons. For example, SafeNet protects nearly $1 trillion in interbank transfers daily.

Recently, SafeNet has been helping hardware vendors monetize software. Medical device companies sell some hardware solutions at over $1 million per unit, and there is a limited market at those prices. However, in order to monetize smaller markets, these same medical devices are now offered on a usage basis with an affordable amount per transaction that extends their reach. In this way, medical device companies are able to keep both CAPEX and OPEX business models in place.

Increasingly these days, the Cloud has become the datacenter for Digital Businesses. Monetization platforms like Sentinel Cloud, together with CRM systems, manage the front-end sale and distribution of digital offerings and, through ERP connectors, feed Oracle and SAP on-premises systems at the backend for financial accounting.

By outsourcing monetization to platform providers like SafeNet, Digital Businesses can manage their licensing models, extend themselves into new channels to increase their revenue and focus their attention on managing customer satisfaction.