1. © 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, 2012 @LicensingLive

2. 2 © SafeNet Confidential and Proprietary Typical SaaS Company Approach… @LicensingLive

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

4. 4 © SafeNet Confidential and Proprietary …and turns into “How do we optimize?” @LicensingLive

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

6. 6 © SafeNet Confidential and Proprietary Questions we often hear… @LicensingLive

7. 7 © SafeNet Confidential and Proprietary What business model should we use? @LicensingLive

8. 8 © SafeNet Confidential and Proprietary How do we optimize our offering? @LicensingLive

9. 9 © SafeNet Confidential and Proprietary What metric should we use to charge our customers? @LicensingLive

10. 10 © SafeNet Confidential and Proprietary @LicensingLive Maximizing Revenues Lower Price Higher Price Segmented Price

11. 11 © SafeNet Confidential and Proprietary Match Offering to Value Received by the Customer @LicensingLive

12. 12 © SafeNet Confidential and Proprietary @LicensingLive 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. 13 © SafeNet Confidential and Proprietary @LicensingLive 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. 14 © SafeNet Confidential and Proprietary But, how do we get there? @LicensingLive

15. 15 © SafeNet Confidential and Proprietary @LicensingLive 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. 16 © SafeNet Confidential and Proprietary Challenge: How to take the guesswork out of finding the right model? @LicensingLive

17. 17 © SafeNet Confidential and Proprietary 5 Steps to Optimize Your SaaS Business Model @LicensingLive

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

19. 19 © SafeNet Confidential and Proprietary @LicensingLive 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. 20 © SafeNet Confidential and Proprietary 3. Segment Accordingly Product Packaging Customer Segmentation Optimized Market Applicability (The right offering for every customer) @LicensingLive

21. 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 Packages @LicensingLive

22. 22 © SafeNet Confidential and Proprietary @LicensingLive 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. 23 © SafeNet Confidential and Proprietary @LicensingLive Track Usage Identify Patterns Segment Test Models Measure Results 5 Steps to Optimize Your SaaS Business Model

24. @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. 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 models @LicensingLive

26. 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 model @LicensingLive

27. Software Monetization in the Cloud Flexible Service Catalogs Automated Provisioning Service Usage Control Service Usage Measurement Booth #13 Visit us today at www.SentinelCloud.com BOOTH 13 FREE TRIAL @LicensingLive

28. 28 © SafeNet Confidential and Proprietary Thank You @LicensingLive