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.

 

Mike West

About Mike West

Michael West is Vice President with Saugatuck Technology. His areas of research and consulting expertise include Cloud Computing, “Enterprise Ready” SaaS, ISVs in transition to SaaS, Cloud and Mobile Development platforms, SaaS Integration, Social Computing platforms, Mobile Commerce / Mobile Payments and GRC. In 2000, Mr. West joined Saugatuck as an early co-founder after leaving Gartner, Inc., where he served as Vice President and Research Director. In 2004-5, Mr. West spent a year in Washington, D.C. at the Corporate Executive Board as Practice Manager of the Information Risk Executive Council, before returning to work at Saugatuck and re-focusing his interests on Software-as-a-Service and Cloud platforms. He has written and presented research on information management, data administration, applications development, application integration, object technology, client/server architectures, mobile commerce / payments, graphical user interface and usability strategies, web site development and Internet applications, network computing, electronic commerce, portals, hubs and communities. Mr. West has an A.B. from Williams College , M.A. from Johns Hopkins University and M.B.A. from the Boston College Graduate School of Management. He has taught IT Strategies in M.B.A. programs at the Boston College Graduate School of Management and at the Haas School of the University of California at Berkeley.