1. © 2012 IBM Corporation May 2012 Rational Token Licensing: Licensing Adaptable to Changing User Needs

2. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Agenda  Software Innovation  Licensing Adaptable to Changing User Needs  Token Licensing

3. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational 3 Innovation is increasingly being driven by software Source: Mobile banking: A catalyst for improving bank performance, Deloitte, 2010; and Jürgen Mössinger (2010), Software in Automotive Systems, IEEE Software, March/April 2010. Mobile banking will be the most widely used banking channel by 2020, if not sooner Today, electronics drive about 80% of the automotive industry’s functional innovation, and software is the key to most of it

4. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Transforming software and systems delivery brings about dramatic business results 4

5. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Three key actions of transforming software and systems delivery 5

6. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Realities can stall software-driven innovation Complexities in software delivery compounded by market pressures 6 …You Need the Right Rational Product at the Right Time!

7. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Licensing Models Over Time Industry is moving towards more flexible licensing Trends of licensing types over time Increased Productivity and Flexibility Decreased Time-to-Market Capabilities and Activities FUTURE Single System CPUID Single User; Entitled, Perpetual License Pool of Users; Entitled, Perpetual License Pool of Users; Fixed Term Leased License Pool of Users; Fixed Term; Pool of Products Token Licensing – Float across users and across Products!

8. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Licensing Challenges affect Software Delivery Flexibility  Inflexible licensing schemes can lead to loss of productivity –Not enough licenses may be available during heavy usage periods For example: during large performance tests, too few licenses may result in poor test coverage. –No way to move licenses from product to product as needs change during a project Resulting in licenses being temporarily unused for parts of the project – not driving value.  Time to Market increased due to license issues –Installation of new software typically depends on license availability – if there are no licenses, software is not installed. –New License acquisition takes time  Budgetary availability and timing concerns may delay license purchases Fixed License 

9. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Advantages of Flexible licensing  Multiple licensing options to your development teams  Identify the best license fit for a given task or project –Some users may require fixed, permanent license for certain products Example: A Developer requiring permanent access to Rational Application Developer –Other products may be used infrequently, and do not require permanent licenses Example: Performance testing may only be done once per iteration –The usage of licenses may change over time on a project Example: Initially, there may be more licenses required for Requirements Management solutions, whereas towards the end of a project, more Functional Testing licenses may be required  Easily trial new software –New Purchase Orders are not required for software included in flexible licensing schemes – provides a seamless platform to introduce new technologies Flexible Licenses 

10. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Agenda  Software Innovation  Licensing Adaptable to Changing User Needs  Token Licensing

11. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Licensing pool is adaptable to changing budgetary & user needs Flexible License Pool Project AProject BProject C Perpetual License Fixed Term License Authorized UserFloating UserFloating Token User

12. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational License types: Perpetual Licenses  A One Time Charge (OTC) or “perpetual” license grants the use of the specific version / release of the software obtained indefinitely, as long as the customer complies with the terms of the license agreement. –An authorized user license is a type of OTC license that is associated with a single product. An Authorized User is a unique person who is given access to the product. The product may be installed on any number of computers or servers and each Authorized User may have simultaneous access to any number of instances of the program at one time. –A floating user license is a type of OTC license, associated with a single product, but which can be shared among multiple team members, but the total number of concurrent users must not exceed the number of licenses. Floating License Authorized User License

13. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational License types: Fixed Term Licenses  A Term License (or Fixed Term License, or FTL) grants the use of the software over a limited time period, or term (typically 12 months) as long as the customer complies with the terms of the license agreement. –Term Licenses can be of either the Authorized user or Floating User type.  Token Licenses are a form of fixed term license that allow the mixing of different products in real time. –Token Licenses are Floating User license types. Term License Token Licenses

14. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Agenda  Software Innovation  Licensing Adaptable to Changing User Needs  Token Licensing

15. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational What is a Token License?  A “Token” is a base unit of license value  Tokens can be exchanged for the right to use specific Rational software  Token Term is normally 3 to 5 years  A software application requires 1, 2 or more tokens to run  There is no restriction on which entitled application can be installed or used on a given machine  There is no limit on the number of entitled applications that can be run concurrently, or on which machines they can run, up to the total number of tokens purchased Project C Token Pool

16. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Teams use any mix of specific products after purchase from Token Pool  Token license agreements allow organizations to “rent” licenses for a given period of time with no entitlement rights at end of term  Token licenses can float across users and across products  A token constitutes a unit of value which can be repeatedly exchanged via server for a mix of software licenses - Essentially unlimited substitution How does token licensing work? Licensing resilient to changing budgetary and user needs Organization purchases product specific tokens based on projected product usage = Token Pool 21 Rational Team Concert = 7 tokens Rational DOORS = 10 tokens Rational System Architect = 9 tokens Token Pool

17. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Organization purchases new tokens and maintains active Subscription and Support (S&S) on a set of “inactive” OTC Rational products in exchange for a fair market value enhancement of additional tokens on the OTC products Teams use any mix of specific products after purchase from Token Pool Leverage your current Rational investment Token licensing flexibility enhancement from OTC products  Token Flexibility Enhancement is an additional token agreement, executed by Passport Advantage site, where “OTC” (perpetual) licenses become inactive for a fixed period of time and enhanced to tokens  OTC licenses that are inactive contractually must remain under active S&S. Customer offered “flexibility” pricing leveraging active S&S costs  At end of term, customer may begin using OTC licensing again, initiate another token term. 21 Rational Team Concert = 7 tokens Rational ClearCase = 5 tokens Rational System Architect = 9 tokens Prior Active Rational Purchases e.g. ClearCase, ClearQuest, etc. Token Pool

18. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Token Licensing provides an added layer of flexibility  Flexible use of Rational solutions –Use the right tool at the right time during the lifecycle of a development project  Streamline License Management –Help eliminate the concept of temporarily “unused” software as the project moves from one development phase to the next  Simplify License Purchasing –Allow customer access to specialty software during the project, without the hassle of a new PO or evaluation process  Address Budgetary Concerns –Replaces a less predictable spending model that has large spikes with a uniform spending model with incremental increases as needed

19. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Agenda  Software Delivery Challenges  Licensing Adaptable to Changing User Needs  Token Licensing

20. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational Summary  Flexible Licensing allows software delivery teams to maintain productivity and reduce time to market  IBM Rational provides innovative licensing approaches to help your software delivery teams succeed, including new token licensing  Investment in a token strategy can provide optimal use of Rational solutions based on an organization’s development lifecycle  Practitioners can utilize the right Rational tool at the right time during the development lifecycle  Rational tokens allow great flexibility in configuration: allow for current product use as well as factoring additional tools that might be needed later in the lifecycle.  Many Rational solutions can leverage token licensing today.

21. © 2012 IBM Corporation Accelerating Product and Service Innovation | Rational 21 © Copyright IBM Corporation 2012. All rights reserved. The information contained in these materials is provided for informational purposes only, and is provided AS IS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials. Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, or services do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilities referenced in these materials may change at any time at IBM’s sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or feature availability in any way. IBM, the IBM logo, Rational, the Rational logo, Telelogic, the Telelogic logo, and other IBM products and services are trademarks of the International Business Machines Corporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others. www.ibm.com/software/rational