Software Monetization with Sentinel LDK Activation History and Feature Usage Information Helps Drive Business Decisions

Out-of-the-box Software Protection, Licensing, and Entitlement Management System Sentinel Software Monetization Solutions Protect-Once-Deliver-Many-Evolve-Often™ enables: Sentinel® is the most trusted brand in the software industry for secure, flexible, and future-proof software monetization BUSINESS AGILITY solutions. The robust portfolio of products and services address each and every aspect of the software monetization lifecycle Updated offerings are immediately available, decreasing time to market. – from copy and intellectual property (IP) protection to product catalog management and ongoing end-user experience REDUCED COST improvement. SafeNet is the first and only vendor to offer a complete portfolio of software licensing and entitlement Bundling features sold as part of an offering has no impact or distraction on the R&D processes. The R&D team integrates management solutions to enable monetization of any type of software – installed, embedded, or cloud services – using any once and requires no implementation changes based on which features are sold. combination of business models via any sales channel to any end-user device. BUSINESS INTELLIGENCE Software Monetization with Sentinel LDK Activation history and feature usage information helps drive business decisions. Sentinel License Development Kit (LDK) is a comprehensive software monetization solution that pairs the award-winning security, licensing flexibility, and ease-of-use features of the Sentinel license enforcement solutions with the licensing operations management features of Sentinel Entitlement Management System (EMS) in one out–of-the-box solution.

How it Works II. Deliver Many ≥ Software Copy and IP Protection Maximize profitability by preventing unauthorized use and distribution of software, and by securing

competitive IP EMS

≥ fLExible Software Catalog Management Easily introduce innovative, flexible, and customer-centric offerings into new markets II. Deliver Many I. Protect Once Define Select Product License EMS ≥ Consolidate and Automate Licensing Operations Catalog Model Eliminate manual operational tasks associated with licensing to save time, minimize errors, and EMS reduce costs Protected Select Protection Business Product ≥ End-User License Management Tools Software Manager Protection Type Increase end-user transparency and reduce licensing support costs while improving customer satisfaction I. Protect Once Define Select Protect & Single MS Engineer Product License E Release Application ≥ Detailed Tracking and Reporting Binary Catalog Model Gain insight into how, when, and by whom your software is being activated and used to improve product and business Track & Manage decision-making capabilities Report on Usage Entitlements Protected Select Protection III. Evolve Business Renew Product The Sentinel Design Philosophy Software Upgrade Manager Protection Often Revoke/re-host Type

Audit Report Fully aligned with the entire software monetization lifecycle, the unique Protect Once, Deliver Many, Evolve Often™ design Protect & Single Engineer philosophy of all Sentinel licensing products and services enable software publishers to fully separate their business and Release Application Binary engineering processes. Developers integrate, product managers define, fulfillment delivers, and business leaders evolve the Track & offering pricing and packaging strategies on an ongoing basis—all in distinct independent processes. This design feature Report on Manage enables software publishers to maximize product versatility and business agility while ensuring optimum use of employee Usage Entitlements time and core competencies, resulting in faster time to market and a quicker response to changing market needs. III. Evolve Renew Upgrade I. Protect Once – Integrate Licensing APIs Often Revoke/re-host Protection PR Protect Once The first step to software monetization is to identify which features of your application you want to license and sell Audit Report OT EC Integrate Sentinel software licensing APIs separately, and integrate Sentinel LDK’s Licensing API (or Envelope) accordingly. At this stage, you don’t need to decide how T M into your application. Single OL ON O features will be bundledProtect as & part of your offering. Once this step is completed, your software is ready to be sold using any of R I N Engineer Application T TO Release N R C the various license models. Binary O E C

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II. Deliver Many – Product Bundling and Delivery Define Select III. Evolve Often – Adapting Product Catalog Product License Protected Select Once the protected application is ready for release, your product Catalog Model With Sentinel LDK, software publishers have theProtection ability to track when, how, and by whom theirBusiness Product Software Manager Protection management team has full flexibility in packaging the offering using software is being consumed. This information can be generated into reports and used to make Type various business and licensing models. Once sold, operations fulfill decisions on how to alter product roadmap, marketing, and packagingProtect strategies. & Single With Sentinel Select Engineer Application Business Product Release the required product based on the pre-defined distribution model and Manager Protection LDK, engineering and business processes are separated. Product managementBinary and marketing protection mechanism. Type teams are free to change license models and packaging decisions without ever having to re- Track & Report on Manage II. Deliver Many Renew engineer a line of code. Knowledge is power, and Sentinel LDK arms software publishers with the Usage Entitlements Defining your offering Sentinel LDK allows for a quick and simple Track & EMS information they need to make intelligent decisions, and the ability to easily evolve their business II. Deliver Many Report on Manage Renew process in which software vendors can create and manage product catalogs, feature Entitlements Upgrade S EM Usage on the fly. Upgrade I. Protect Once Define Select Product License MS Revoke/re-host I. Protect Once DefineE Select bundles, and licensing models on the fly. Having the required building blocks to easily Catalog Model Product License EMS Renew Catalog Model create and maintain a sophisticated product offering without engineering involvement Upgrade Audit Report Revoke/re-host Protected Select Protection Business Product Revoke/re-host Software Manager Protection Protected Select Type Protection Business Product II. Deliver Many Single allows software vendors to easily and efficiently bundle their applications in a variety of Software Protection Protect & Audit Report Manager Engineer Release Application The Industry’s Most Secure Copy Protection Solution Type Binary Track & Single Report on Manage Audit Report Protect & Entitlements MS Usage Engineer E ways to reach a range of unique market segments. Release Application Binary III. Evolve II. Deliver Many Renew Track & Upgrade For software publishers delivering physical or electronic copies of their application to end users, the Manage Often Revoke/re-host Report on Audit Report

Entitlements S I. Protect Once UsageDefine Select EM Choosing a license model Sentinel LDK provides the industry’s widest and most ability to prevent unauthorized use or re-distribution is a critical component to achieving maximum profitability. To ensure Product License EMS III. Evolve Catalog Renew Model Define Select Upgrade I. Protect Once Product License EMS sophisticated licensing models, which can be mixed and matched to meet a variety of that software vendors get paid for every software copy being used, Sentinel LDK employs the industry standard 128-bit AES Often Revoke/re-host Catalog Model

Audit Report Protection market demands. Protected Product Select encryption algorithm. This creates a robust link between the software application and the Sentinel Protection Key—preventing Protected Product Select Protection Business Protection Business Software Manager Protection Software Protection Protect & Single Type Manager Engineer Application Release Single Type Protect & Binary Engineer Release Application Binary software piracy and ensuring that the only use of the application is authorized. Protect & Single TrackMS & Engineer E Manage Sentinel Licensing Models Release Application Report on Binary Usage Entitlements

Track & III. Evolve Renew Define Select Manage Upgrade Report on Product License ≥ Pay-Per-Use ≥ Volume License Often Revoke/re-host ≥ Perpetual • Copy protection with Sentinel HL hardware-based licensing. License logic embedded in the Sentinel HL keys ensures that Entitlements Catalog Model Usage Audit Report Protection III. Evolve Renew Product Select licenses are hardware secured and tamper resistant by employing Sentinel LDK’s patented LicenseOnChip™ technology. Upgrade Business ≥ Rental ≥ Capacity Manager Protection ≥ Feature Based II. Deliver Many Type Often Revoke/re-host Protect & Single Engineer II. Deliver Many Release Application Audit Report At runtime, the protected software sends encrypted strings to the Sentinel HL key and, in return, the key decrypts those Binary Track & Manage ≥ Floating/Network ≥ User Protection Report on MS EMS ≥ Super-Distribution Trialware E Usage Entitlements

EMS Single Renew strings and produces a unique response that cannot be imitated. Protect & Engineer Release Application Upgrade Binary Define Select I. Protect Once Revoke/re-host Product License EMS ≥ Commuter ≥ Grace Audit Report ≥ Subscription Catalog Model I. Protect Once Define Select EMS Product License MS Define Select E • Copy protection with Sentinel SL software-based licensing. Sentinel SL is a virtual protection key that is installed and Catalog Model Protected Select Product License Protection Define Select Business Product Software Manager Protection Catalog Model Product License Type Catalog Model Select Protection Protect & Single stored on the end-user device. Sentinel SL creates a hardware fingerprint from the end user’s hardware to bind the license Engineer Application Choosing a protection type Whether you ship physical boxes, embed your software into high-tech devices, Release Binary Track & License II. Deliver ManyManage Protected Select Select Report on Protection Business Product Business Product Entitlements Single Protection Usage Protect & Software Manager Protection Manager Model to the specific device and prevent piracy. Engineer Product Select Type offer electronic delivery, or deliver your product as a service in the cloud*, our various protection types have Application Business Type Renew Release Protection III. Evolve EMS Manager Upgrade BinarySingle Protect & Type Often Revoke/re-host Engineer Application Track & Audit Report Release Report on Manage you covered. Define Select Binary I. ProtectUsage OnceEntitlements MS E ProductII. Deliver ManyLicense EMS Sentinel LDK also leverages White-Box encryption, ensuring that the communication channel between the protected Track & Catalog Model Select Renew Manage License Report on Upgrade Track & Model Entitlements Revoke/re-host Usage Manage EMS Report on Audit Report Protected Select application and the protection key cannot be replayed, and, therefore, omitted from the overall protection scheme. White- Entitlements Protection Protected Product Select Featuring SafeNet’s innovative and unique Cross-Locking™ technology, SentinelProduct LDK enables you to leverage Protection Business Protection Usage Software Protection Protection Business Define Select Renew Manager III. Evolve Protected Select Type Software Protection Business Product Protection Product License Software Protection Define Select Manager Upgrade Protection ManagerI. ProtectProtect & OnceSingle Renew Engineer Type Product License MS Catalog Model Release Application E Box cryptography takes into consideration that the potential attacker can trace the protected application and the runtime in Often Revoke/re-host Binary Catalog Model any combination of hardware or software license delivery and locking options. Each protection type hasType its Upgrade Protect & Single Engineer Application Protect & Single Track & Audit Report Release Engineer Application Report on Manage Revoke/re-host Binary Release Entitlements Track & Binary Usage Single Manage Audit Report Report on Protected Select Renew Protect & search of the encryption key. With this assumption as part of the design, the AES algorithms and encryption keys are replaced Product Protection Usage Entitlements III. BusinessEvolve Renew own unique benefits: Software MS ManagerE Protection Engineer Application UpgradeType Select Renew Release Business Product Often Revoke/re-host Upgrade Protect & Single Protection Engineer Upgrade Audit Report Manager Release Application Binary Revoke/re-host with special vendor-specific libraries that implement the same encryption but embed the encryption key as part of the Type Binary Define Select Audit Report Track & Revoke/re-host Product License Report on Manage Track & Catalog Model Usage Entitlements Hardware-based Licensing with Sentinel HL – Sentinel HL family of keys offers the highestManage Audit Report Report on III. Evolve Renew algorithm in a way that ensures it is Renewnever present in the memory and cannot be extracted by an attacker. Upgrade Entitlements Select Track & Often Product SelectRevoke/re-host Usage License Business level of copy and IP protection available. Offered in a wide variety of types and form factors, Manage Manager ProtectionAudit Report Report on II. Deliver Many Model Entitlements Type Protection Usage Protection

EMS Renew Single the Sentinel HL keys protect software by allowing access and execution of the application only Renew Protected Product Protect & Select Track & Upgrade Protection Business Engineer Application Manage Software Release Protection Report on Single Manager Binary Entitlements Protect & Upgrade Type Usage Upgrade Engineer Application Single Define Select Release Revoke/re-host I. Protect OnceProtect & Renew Engineer Application EMS Binary Release Product License EMS when the key is physically connected. Sentinel HL keys are ideal for software publishers whose Audit Report Binary Catalog Model Upgrade Revoke/re-host Protection Track & Revoke/re-host Manage Report on Audit Report Strong Intellectual Property Protection Renew Usage Entitlements Audit Report MS Define Select Revoke/re-host E Protect & Single primary concern is security. Ideal for scenarios where the protected application runs on a device Product License Protected Product Engineer ApplicationSelect Renew Protection Business Release Catalog Model Upgrade Software Manager ProtectionBinary Upgrade Type Revoke/re-host Single Audit Report Revoke/re-host Protect & EMS In an increasingly competitive software industry, the ability to protect your software code from prying eyes, manipulation, and Engineer Application that supports UBS Release Binary Select Business Product Define Select Track & Manager Protection Audit Report Select Report on Manage Audit Report Type Product License Entitlements License Usage Define Select theft is critical to ongoing financial success and competitive positioning. Sentinel LDK offers a secure envelope solution, Catalog Model Product License tokens or an express card. Model III. Evolve Renew Catalog Model Upgrade Track & Manage Often Revoke/re-host Report on Entitlements Audit Report Usage Sentinel Envelope, to ensure software code is safe from exposure while en-route to its end-user destination. Select Business Product Renew Manager Protection Product Select UpgradeType Software-based Licensing with Sentinel SL – Sentinel SL keys are virtual software-based keys Protected Business Select Revoke/re-host Protection Business Product Protection Software Manager Protection Audit Report Manager Type Select License Type Track & Beyond the encryption algorithm found between the protected application and the Sentinel protection key, Sentinel LDK offers ManageModel built on the Sentinel HL protection technology and residing in the secure storage of your end- Report on Single Entitlements Protect & Usage Engineer Application Release Protection Renew Binary Upgrade an additional means of wrapping and protecting your application executables and DLL’s in a virtually impenetrable protection Protected Select Track & Protection Business Product user’s machine. The use of Sentinel SL eliminates the need to ship a physical product, enabling Track & Software Manager ProtectionRevoke/re-host Manage Protect & Single Report on Manage Engineer TypeAudit Report Report on Entitlements Release Application Usage Binary Protect & Single Renew Entitlements Engineer Usage Release Application shield. The Sentinel Envelope is an automatic file wrapper that provides robust Intellectual Property (IP) protection against Select Binary end users to quickly install and start using the application. Sentinel SL is ideal for software EMS Track & License Renew Report on Manage Renew Entitlements Renew Model Upgrade Upgrade Usage Upgrade reverse engineering through file encryption, code obfuscation, and system-level anti-debugging. The Sentinel Envelope creates Renew Revoke/re-host Define Select Upgrade publishers whose end users require more flexible license delivery methods. Revoke/re-host Upgrade Audit Report Product License Audit Report Catalog Model Revoke/re-host Revoke/re-host Audit Report Revoke/re-host multiple random layers of protection for each file it protects making it extremely complex and time consuming for Protected Select Select Protection Business Product License Audit Report Software Protection Select Model Manager Business Product Protection Audit Report For software vendors who would like to offer all or a portion of their offering as a service, Type Manager Type hackers to remove. Single Protect & Protected Select Engineer Application Protection Business Product Release Software Manager Protection SafeNet offers Sentinel Cloud, a quick and easy add-on to Sentinel LDK. Integration of the Track & Type Binary Manage Report on Select II. Deliver Many Protect &Entitlements Single Track & UsageEngineer License Release Application Report on Manage Binary Model Renew Renew Entitlements Track & Sentinel Cloud APIs into the software products you wish to offer as a service will provide all of Usage Upgrade Report on Manage Entitlements Renew Revoke/re-host Usage Audit Report EMS Protected Select Renew Protection Business Product Renew SoftwareUpgrade Manager Protection Upgrade UpgradeType the same product packaging, provisioning, control, and usage measurement benefits enjoyed Upgrade Revoke/re-host Protect & Single Revoke/re-host Engineer Application Audit Report Revoke/re-host Improved End-User Experience Release Binary Audit Report Revoke/re-hostTrack & Manage Audit Report by Sentinel HL and Sentinel SL customers, and then some. To ensure ease of management, Define Select Report on Renew I. Protect Once Usage Entitlements Product License EMS Catalog Model Audit Report Renew Upgrade Focusing on an improved end-user experience and transparency, Sentinel LDK introduces the following features: Upgrade Sentinel Cloud is also fully integrated with Sentinel EMS, the entitlement management Revoke/re-host Audit Report Revoke/re-host

Select Audit Report component of all Sentinel licensing solutions, including Sentinel LDK. Protected Select Protection Business Product License • 3-Step License Re-host – Enables end users to transfer an SL key from one computer to another in three simple steps, Software Manager ModelProtection Type Select Protect & Single License without the need to contact the ISV and without Internet connectivity. Engineer Model Managing end-user entitlements Sentinel EMS, the industry-proven entitlement management engine of Release Application Binary Protected Select Protection Business ProductTrack & Protected Select Sentinel LDK, enables software publishers and their customers to track the delivery and activation status Software Manager ManageProtection Protection Business Product Report on Software Manager Protection Usage EntitlementsType Type • User mode runtime – Sentinel SL distributed components do not require administrative privileges. Protect & Single Single Engineer Protect & Release Application of end-user entitlements and then easily manage the terms of each entitlement. You can configure the Engineer Application Renew Binary Release III. Evolve Track & Manage Binary Upgrade Report on Renew Track & Usage Entitlements Often Manage Revoke/re-host system to notify you or your end-user when trials are coming to an end, when subscriptions are up renew, or • Admin API – Enables ISVs to integrate the end user’s administrative license operations into their application, fully Report on Renew Audit Report Renew Upgrade Usage Entitlements Upgrade Revoke/re-host Audit Report Revoke/re-host when a service is not being used. But knowledge is only half the battle, Sentinel LDK also enables remote customizing the experience. Renew Upgrade Upgrade Audit Report entitlement activation, renewal, re-host, upgrade, and much more to be performed by either the software Revoke/re-host Audit Report Revoke/re-host publisher or the end-user. The Sentinel EMS component of Sentinel LDK easily integrates into the industry’s • Certificate-based Licensing – Allows storing a human-readable C2V (license file) stored on the end user’s machine for Audit Report most common ERP, CRM, Billing, and Marketing Automation systems through a standard Web Services simplified troubleshooting. Protection Protection interface. This allows you to easy manage the entire lifecycle of your customer contracts in a fully automated Protect & Single Engineer Release Application Binary way. This in turn allows for increased efficiency whilst reducing operational costs and providing a scalable

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Audit Report License Lifecycle Management Sentinel Cloud Services Add-On Adding on Sentinel Cloud Services to your Sentinel LDK system provides you with the necessary capabilities to deploy Centralized License Management cloud-based services while still taking advantage of the broad set of licensing capabilities that enable service agreement Sentinel EMS, a component of Sentinel LDK, is a centralized Web-based platform that provides software publishers access compliance. This empowers you to solve new business problems, enter new markets, and ultimately provide an approach to to all license and entitlement management functions, a simple interface to their back office systems, and a variety of data licensing that aligns with the rapidly evolving end-user experience requirements of today’s cloud services trend. collection and reporting tools. Using the Role-based Vendor Portal software publishers can easily create, implement, and manage their product catalog, customers, and end-user entitlements. As the standard entitlement management engine for Sentinel Cloud is a cloud-based service that automatically augments your offering with a licensing service layer. To integrate all Sentinel products and designed for easy integration with any commercial or homegrown license systems, Sentinel EMS with Sentinel Cloud Services, simply follow the tried and true design methodology to embed basic licensing APIs into your provides you with an easy way to centralize all licensing activities company-wide. application. Then, during application use, the APIs will interact with Sentinel Cloud to retrieve and authorize your users with their licensing rights delivered in the cloud. License Fulfillment & Delivery Automation By using Sentinel Cloud to manage your services, the following additional benefits will be realized: The automation of licensing and entitlement management functions enables you to minimize manual, time-consuming data entry processes to eliminate errors, while saving time and reducing fulfillment costs. The automation of licensing also has a direct positive effect on customer satisfaction by enabling end users to purchase, activate, renew, upgrade, and re-host without needing to contact your customer support team. Sentinel EMS, a component of Sentinel LDK, easily integrates into ≥ rEal-Time Automated Licensing ≥ bILLIng Automation the industry’s most common ERP, CRM, Billing, and Marketing Automation systems through a standard Web Services interface. Experience The collection of granular usage information at the In addition, SafeNet offers a variety of professional service packages designed to ease the integration of the Sentinel EMS into Using Sentinel Cloud allows you to entitle, provision, feature level is aggregated on a recurring basis and any custom homegrown back office system that a software publisher may have deployed. and update a license to use your services delivered via made available via Web services to drive the billing a cloud license manager. Synchronized with Sentinel function EMS, license rights are continuously updated to ensure real-time service agreement compliance ≥ Product Intelligence Business Intelligence Insight into feature-level usage allows a software With Sentinel LDK, software publishers have full visibility into their existing customer base from start to finish. Beginning with ≥ nEw ways to do business publisher to know what’s hot and what’s not by the on boarding of a new customer, this centralized platform provides an easy and intuitive automated process for delivering Introduce new ways of monetizing your offerings providing visibility into the most popular and least entitlements and registering products while collecting and storing customer demographic, product activation, and feature through use-based business models. Support both popular features used by customers usage* information. Once this data is captured, Sentinel LDK enables you to create customized reports around activations, prepaid (with limits) and postpaid offerings, enabling feature popularity and much more. Its automated notification feature also makes it possible to notify on upcoming renewals your customers to pay for what they use. These new ≥ Common Entitlement Management and updates. models enable a more direct relationship between Since Sentinel Cloud and Sentinel LDK are both customer value and the pricing of your offering, while fueled by the Sentinel EMS entitlement management With Sentinel LDK, your organization can plan accordingly for future roadmaps and capitalize on cross-selling opportunities in opening up new sales opportunities for customers system, software publishers avoid having redundant the following ways: who might have been previously priced out by your systems to manage entitlements for on-premise • Compliance Reporting – Providing entitlement tracking and reporting tools that enable end users to easily ensure they are traditional ways of licensing license deployment and cloud-based licenses—further not inadvertently exceeding paid license usage. reducing the number of integration points required and significantly simplifying your business operations • End-User Insight – An optional end-user registration step enables you to identify and gain direct access to every individual who activates a copy of the application.

• Software Packaging Optimization – Product Management and Engineering can discontinue bloatware and create software packages containing the most popular features that customers and prospects want.

• Usage Trend Analysis – Marketing and Sales can utilize customized reports to analyze what, when, and how products are being used, and leverage this invaluable data to plan, launch, and execute more effective sales and marketing activities*.

Software Developer Tools SafeNet Sentinel Software Monetization Solutions Constantly striving to provide tools to make licensing implementation and management quick and easy for the software SafeNet has more than 25 years of experience in delivering innovative and reliable software licensing and entitlement publisher, Sentinel LDK offers a variety of software developer tools including, but not limited to, the following: management solutions to software and technology vendors worldwide. Easy to integrate and use, innovative, and feature- focused, the company’s family of Sentinel® Software Monetization Solutions are designed to meet the unique license • Sentinel Toolbox - A GUI-based application designed to facilitate developer use of various Sentinel LDK APIs and source enablement, enforcement, and management requirements of any organization, regardless of size, technical requirements, or code generators. The Sentinel ToolBox allows software developers to execute API functions, observe the behavior of these organizational structure. functions, and then copy the relevant source code into their own application. For more information on SafeNet’s complete portfolio of Software Monetization Solutions for installed, embedded, and cloud • LicGen API - A stand-alone licensing interface for sites that already have a licensing infrastructure in place or that prefer applications, or to download a free evaluation of our award-winning products, visit www.safenet-inc.com/sentinel. implementing an alternative to Sentinel EMS. The LicGen API provides the functionality required to generate and manage Sentinel protection keys. SafeNet is dedicated to the ongoing improvement of our Sentinel Software Monetization solutions; therefore, the list of supported operating systems and development environments is always evolving. Visit www.safenet-inc.com/LDKtechspecs for the latest technical specifications.

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