© SafeNet Confidential and Proprietary Cloud Monetization: A Step-by-Step Guide to Optimizing Your SaaS Business Model Shlomo Weiss VP of Business Development May 9,

2 © SafeNet Confidential and Proprietary Typical SaaS Company

3 © SafeNet Confidential and Proprietary It starts with a land grab …

4 © SafeNet Confidential and Proprietary …and turns into “How do we

5 © SafeNet Confidential and Proprietary A Balanced Business Model Monetization (LTV) Cost to Acquire a Customer (CAC) Source: David Skok, Matrix

6 © SafeNet Confidential and Proprietary Questions we often

7 © SafeNet Confidential and Proprietary What business model should we

8 © SafeNet Confidential and Proprietary How do we optimize our

9 © SafeNet Confidential and Proprietary What metric should we use to charge our

10 © SafeNet Confidential and Maximizing Revenues Lower Price Higher Price Segmented Price

11 © SafeNet Confidential and Proprietary Match Offering to Value Received by the

12 © SafeNet Confidential and 12 Segmented Offering + Value A, B and C Light Version + Value A, B or C Standard Package Packages with different values, where values can be: Features Resources Service Levels Frequency/duration Etc.

13 © SafeNet Confidential and 13 Optimized Offering + Value A, B and C Light Version + Value A, B or C Standard Package Packages with different values, where values can be: Features Resources Service Levels Frequency/duration Etc.

14 © SafeNet Confidential and Proprietary But, how do we get

15 © SafeNet Confidential and It’s complicated… Elements of a SaaS business model Price ($X or free) Metric (user, transaction, instance, bandwidth, click, print, save, etc.) License Model (subscription, pre-pay, post paid, metered, concurrent users) Package (Standard, Basic, Pro, Enterprise, etc) Option 1Option 2Option 3Option 4Option 5Etc…. Price A, Metric B, License A, Package C Price B, Metric B, License D, Package A Price A, Metric C, License B, Package B Price C, Metric B, License A, Package A Price D, Metric D, License C, Package C ……. But which combination is right for you?

16 © SafeNet Confidential and Proprietary Challenge: How to take the guesswork out of finding the right

17 © SafeNet Confidential and Proprietary 5 Steps to Optimize Your SaaS Business

18 © SafeNet Confidential and 1. Track Usage Implement usage tracking to understand how customers are using our service today Users Features Modules Content Resources Bandwidth Storage Instances

19 © SafeNet Confidential and 2. Identify Patterns 2A - Analyze usage data to identify patterns Frequency of use By % of users Peak usage times Grouping of types of usage/users Usage over time 2B - Survey/Speak with users to validate findings

20 © SafeNet Confidential and Proprietary 3. Segment Accordingly Product Packaging Customer Segmentation Optimized Market Applicability (The right offering for every

21 © SafeNet Confidential and Proprietary 4. Test Models Run A/B tests to try out new models Existing users New customers Have systems in place to easily implement and adjust Pricing Metrics License models

22 © SafeNet Confidential and 5. Measure Results Select packages based on the results of A/B testing Discontinue packages that are not performing well Continue to iterate and refine offerings that perform well

23 © SafeNet Confidential and Track Usage Identify Patterns Segment Test Models Measure Results 5 Steps to Optimize Your SaaS Business Model

@LicensingLive SaaS application for Beta management Bringing it all together 2002: Perpetual License 2005: Annual Subscription – Unlimited Usage 2007: Seat Based – Usage Limits 2009: Seat Based Editions 2011: Optimized Offering – Segmented Packages

25 © SafeNet Confidential and Proprietary Additional Tips Link model to value provided to customer Need to find the right balance: segmentation vs. keeping things simple Enable common features to be used by customers of different sizes Consider combining different

26 © SafeNet Confidential and Proprietary To Sum it Up One size does not fit all Segment your offering to maximize revenue based on real usage data & customer feedback Continuously iterate to improve your offering Make sure you have the processes and systems in place to enable you to optimize your business

Software Monetization in the Cloud Flexible Service Catalogs Automated Provisioning Service Usage Control Service Usage Measurement Booth #13 Visit us today at BOOTH 13 FREE

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