Licensing Changes New Licensing Better Service More Flexible · ShipConstructor Software Inc. DBA...

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www.SSI-corporate.com © SSI. ShipConstructor Software Inc. DBA SSI. 2013-07-11

Licensing Changes

New Licensing – Better Service – More Flexible

Autodesk® based Shipbuilding & Offshore Solutions

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TABLE OF CONTENTS

OVERVIEW ............................................................................................................................................................. 4

1 - SKU BASED PRICING .......................................................................................................................................... 5

What is SKU Based Pricing? .................................................................................................................................. 5

Why are we changing to a SKU based system? .................................................................................................... 5

2 – LEVEL SIMPLIFICATION ..................................................................................................................................... 5

What has changed with Level-based licensing? .................................................................................................... 5

Why did we change? ............................................................................................................................................. 5

Will any existing clients see Subscription increases? ............................................................................................ 5

How do existing clients transition? ....................................................................................................................... 6

3 - SUBSCRIPTION .................................................................................................................................................. 6

What has changed with Subscription? ................................................................................................................. 6

When did these changes take effect? ................................................................................................................... 6

What is the pricing for Subscription? .................................................................................................................... 7

Have we done a complete Subscription Fulfilment process with ShipConstructor 2015? ..................................... 7

Are we doing a complete Subscription Fulfilment process with ShipConstructor 2016? ...................................... 7

5 – SHIPCONSTRUCTOR SUITES .............................................................................................................................. 7

What are ShipConstructor Suites? ........................................................................................................................ 7

What ShipConstructor Suite editions are available? ............................................................................................. 8

What is included in each edition of the ShipConstructor Suite? ............................................................................ 9

Who will benefit most from which Suites? ............................................................................................................ 9

Are there any limitations on who can purchase Suites? ..................................................................................... 10

What happens when a client exceeds the limits on the Standard or Premium editions? ................................... 10

Can a client have different editions in the same organization? .......................................................................... 10

How are the Premium and Standard editions different than the Ultimate edition? ........................................... 11

Can I purchase Modular and Suite licenses for the same organization? ............................................................ 11

6 - UPGRADES ...................................................................................................................................................... 11


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What types of Upgrades are possible? ............................................................................................................... 11

How do I know which products can be upgraded, and to what? ........................................................................ 11

Does this allow clients to switch back and forth as often as they want? ............................................................ 12

7 – RENT & LEASE ................................................................................................................................................. 12

What new Rent options are available? ............................................................................................................... 12

8 – LICENSING ...................................................................................................................................................... 12

Why the change? ................................................................................................................................................ 12

Will there be significant Difference in Architeture? ............................................................................................ 13

What is an Entitlement? ..................................................................................................................................... 13

Will all clients need to move to the new licensing immediately? ........................................................................ 13

When will clients be required to use the new technology? ................................................................................. 13

Will ShipConstructor 2015 require the new licensing? ........................................................................................ 13

Is it possible to maintain a mixed license environment? ..................................................................................... 14

How can I use ShipConstructor 2015 and older versions .................................................................................... 14

Can I have distributed servers ............................................................................................................................. 14

If I have a standalone (Local) license do I still require a server ........................................................................... 14

Can a user work in the office, work at home and work on the road as they did in the past with a standalone

lock? .................................................................................................................................................................... 14

What happens if my machine dies or I upgraded to a new machine .................................................................. 14


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OVERVIEW

SSI has introduced some significant changes coinciding with the release of ShipConstrutor 2015. We have

implemented a new licensing model as well as a new invoicing & quoting order system. With the leap forward in

licensing technology we decided to also bring our in-house, proprietary, quoting and invoicing SSI Order System up

to date as well. These 2 fundamental changes provide the opportunity for multiple peripheral but related changes

that will allow SSI to provide better, more cost effective and efficient service.

All of these changes are intended to enhance our service to our clients and to make SSI’s internal processes more

efficient. The changes will increase security, convenience and simplicity in many areas. This document is intended

to provide our clients with an overview of those changes. Details will be made available through our Sales

Channel.


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1 - SKU BASED PRICING

WHAT IS SKU BASED PRICING?

A SKU, or Stock Keeping Unit, refers to an identifier that uniquely represents a single product or unit of service that can be purchased from a vendor. Bar codes and serial numbers are SKUs. SKUs are a standard and widely adopted business practice that provide enormous efficiencies and cost savings to businesses and subsequently to clients.

WHY ARE WE CHANGING TO A SKU BASED SYSTEM?

SKU based pricing will increase efficiency and allow greater flexibility in delivering services to our clients.

2 – LEVEL SIMPLIFICATION

WHAT HAS CHANGED WITH LEVEL-BASED LICENSING?

Previously, we offered 10 Levels of each product (level 1-9 and Unlimited). We have now compiled these 10 levels

into 3 editions.

Standard Edition – comparable in price to the previous Level 2 (20% of Unlimited) for the equivalent part

count to a current Level 3.

Premium Edition – comparable in price to the previous Level 5 (50% of Unlimited) for the equivalent part

count to a current Level 7.

Ultimate Edition - comparable in price to the previous Unlimited Level.

WHY DID WE CHANGE?

This will provide a simpler system that can be more easily understood by clients. In many cases this will provide a

larger number of parts to clients at a lower cost. In no cases will a client pay more for less capability.

WILL ANY EXISTING CLIENTS SEE SUBSCRIPTION INCREASES?

Some clients will see an increase in Subscription as a result of this change. An extensive analysis was done and our

data indicates that the vast majority of clients will already fit into one of the 3 editions gaining greater part counts

without additional cost.

Level 1 Clients –The $ increase to these clients is small (about 2% of the purchase price of an Unlimited

license). HOWEVER, clients also receive Level 3 part counts for this Subscription increase with no

requirement to purchase the additional levels. Clients currently at Level 1 will be well positioned for

growth without adding cost.

Level 4 Clients - These clients have a choice. If they have not exceeded Level 3 part counts they can

reduce their Subscription by selecting a Standard Edition of the products. Those who have exceeded Level

3 can go to Premium Editions with a 25% increase in Subscription costs and receiving 75% more parts. If


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any growth, even by a single level, is projected, Clients currently exceeding Level 3 will be well positioned

for growth without adding cost.

Level 8 and 9 Clients - These clients have a choice. If they have not actually exceeded Level 7 part counts,

Subscription can be reduced by 37% - 45% by selecting a Premium Edition of the products. Those who are

exceeding Level 7 part counts can go to Ultimate Editions and will see either an 11% or 25% increase in

Subscription costs. However, for this increase they will receive access to an unlimited number of parts.

Clients currently exceeding Level 7 will be well positioned for growth without adding cost.

HOW DO EXISTING CLIENTS TRANSITION?

Existing clients can transition as follows:

Current Level New edition

Level 1-3 Standard Edition

Level 4

Client’s choice

Standard Edition or Premium Edition - Subscription

will increase or decrease when it is next purchased.

Level 5-7 Premium Edition

Level 8-9

Client’s choice

Premium Edition or Ultimate Edition - Subscription

will increase or decrease when it is next purchased.

Unlimited Ultimate Edition

3 - SUBSCRIPTION

WHAT HAS CHANGED WITH SUBSCRIPTION?

We have implemented a Subscription Fulfillment process whereby Subscription clients are given new versions of

the software as they are released. Sales of Subscription are not a ‘renewal’ and do not require license updates.

They simply require a sale of Subscription for the Current Version.

WHEN DID THESE CHANGES TAKE EFFECT?


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These changes took effect as of the release of ShipConstructor 2015. However, we will be providing a transition

period until the end of Calendar 2014. The pricing of Subscription until the end of the calendar year will be

calculated as under the old policy (20% per year calculated to the day).

WHAT IS THE PRICING FOR SUBSCRIPTION?

Subscription is SKU based – a fixed price for each product (e.g. Hull) and Edition (e.g. Standard). It is SSI’s intention

to maintain current pricing. Therefore the “fixed price” of the Subscription SKU has been set at 20% of the related

software value just as it was in the past.

HAVE WE DONE A COMPLETE SUBSCRIPTION FULFILMENT PROCESS WITH

SHIPCONSTRUCTOR 2015?

No. Due to the number of changes being made internally we will be gradually moving clients over as they need

access to ShipConstructor 2015.

ARE WE DOING A COMPLETE SUBSCRIPTION FULFILMENT PROCESS WITH

SHIPCONSTRUCTOR 2016?

Yes. On the release of ShipConstructor 2016 all clients will be sent ShipConstructor 2016 licenses of the products

they have under Subscription. These licenses will be using the new licensing technology.

5 – SHIPCONSTRUCTOR SUITES

Previously, SSI offered only one suite: the Universal Suite. It constained all ShipConstructor products. This has now

been renamed the ShipConstructor Suite Ultimate Edition.

SSI now also offers suites of products targeted at either hull/structure or outfitting. These suites come in either

standard or premium editions which provide a varying amount of capabilities for different price points.

All suites have unlimited part counts but products are grouped to address more common capability requirements.

WHAT ARE SHIPCONSTRUCTOR SUITES?

ShipConstructor Suites are a single license that allows access to a range of ShipConstructor products for a single

user.


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WHAT SHIPCONSTRUCTOR SUITE EDITIONS ARE AVAILABLE?

Five ShipConstructor Suite editions are available:

ShipConstructor Hull Structure Suite Standard Edition

ShipConstructor Hull Structure Suite Premium Edition

ShipConstructor Outfitting Suite Standard Edition

ShipConstructor Outfitting Suite Premium Edition

ShipConstructor Suite Ultimate Edition (the previous Universal license).


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WHAT IS INCLUDED IN EACH EDITION OF THE SHIPCONSTRUCTOR SUITE?

This table outlines the products and capabilities available in each Suite edition:

WHO WILL BENEFIT MOST FROM WHICH SUITES?

ShipConstructor Suite Ultimate Edition - This edition is for clients who have individual users who need a wide

range of capability within a single discipline or a range of capabilities across multiple disciplines. It is also applicable

to larger clients with a large number of users and projects. These clients often require the flexibility and agility that

this edition offers.


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ShipConstructor Hull Structure Suite Premium Edition – This edition is ideal for small to medium organizations

that perform Hull Structure at a higher level of capability within their shipbuilding programs. All of the Hull

Structure specific products are included.

ShipConstructor Outfitting Suite Premium Edition – This edition is suited for small to medium organizations that

perform Outfitting at a higher level of capability within their shipbuilding programs. All of the Outfitting specific

products are included, along with Structure for secondary structure, foundations and structural outfitting.

ShipConstructor Hull Structure Suite Standard Edition – This edition for smaller organizations and users who are

focusing largely on simpler workflows within the Hull Structure disciplines of a project.

ShipConstructor Outfitting Suite Standard Edition – This edition meets the requirements of smaller organizations

and users who are focusing largely on simpler workflows within the Outfitting disciplines of a project.

ARE THERE ANY LIMITATIONS ON WHO CAN PURCHASE SUITES?

ShipConstructor Suite Standard Editions can only be purchased by organizations who have 5 or fewer total

ShipConstructor Suites of any edition.

ShipConstructor Suite Premium Editions can only be purchased by organizations who have 10 or fewer total

ShipConstructor Suites of any edition.

ShipConstructor Suite Ultimate Editions are unlimited.

WHAT HAPPENS WHEN A CLIENT EXCEEDS THE LIMITS ON THE STANDARD OR PREMIUM

EDITIONS?

ShipConstructor Suite Standard Edition licenses must be upgraded to the Premium or Ultimate edition when the

total number of ShipConstructor Suites exceeds 5.

ShipConstructor Suite Premium Edition licenses must be upgraded to the Ultimate Edition when the total number

of ShipConstructor Suites exceeds 10.

Any combinations of Standard, Premium and Ultimate suites are possible within the seat limitations.

CAN A CLIENT HAVE DIFFERENT EDITIONS IN THE SAME ORGANIZATION?

Absolutely. Although each edition has a general type of client for whom it is suitable they can be mixed and

matched provided the total number of Suites doesn’t exceed the limit for each edition they have. For clients

looking at the Standard edition, Premium and Ultimate editions can be implemented for any users requiring

capability not found in the Standard edition. For clients looking at the Premium edition, the Ultimate edition can

be implemented for any users requiring capability not found in the Premium edition.

As an example: a client who qualifies for the Standard edition (with only 5 total Suites of any edition) could have 2

Standard editions, 2 Premium editions and 1 Ultimate edition (which is a network/floating license and can

therefore be used by the other users as well to add capability not found in their assigned edition).


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HOW ARE THE PREMIUM AND STANDARD EDITIONS DIFFERENT THAN THE ULTIMATE

EDITION?

While ShipConstructor Suite Ultimate Edition licenses are floating licenses that can be used by one concurrent user

anywhere within the organization, ShipConstructor Suite Standard Edition and ShipConstructor Suite Premium

Edition licenses are standalone or fixed licenses installed on one computer.

CAN I PURCHASE MODULAR AND SUITE LICENSES FOR THE SAME ORGANIZATION?

No. Just like the previous Universal license, Modular licenses cannot be purchased or leased by clients with Suites.

Modular licenses can be rented in these organizations.

6 - UPGRADES

WHAT TYPES OF UPGRADES ARE POSSIBLE?

Two categories of Upgrades are possible based on the software being upgraded:

1. Upgrade from Current – These Upgrades can be applied to any Current Version products. The two

common upgrades in this category are:

I. Upgrading a lower edition of a product to a higher edition of a product, for example:

“ShipConstructor 2015 Pipe Premium” to “ShipConstructor 2015 Pipe Ultimate”

II. Swapping one product for another, for example: “ShipConstructor 2015 Pipe Premium” to

“ShipConstructor 2015 Structure Premium”

These are just examples. The underlying system allows this transition between many Current Version

products, and editions.

2. Upgrade from Previous – These Upgrades can be applied to any Previous Version products. The result of

this type of Upgrade is always a Current Version product. The three common upgrades in this category

are:

I. Upgrading a Previous Version of a product to the Current Version of the same product, for example:

“ShipConstructor 2012 Pipe Premium” to “ShipConstructor 2015 Pipe Premium”

II. Swapping one Previous Version product for the Current Version of another, for example:

“ShipConstructor 2012 Pipe Premium” to “ShipConstructor 2015 Structure Premium”

III. Upgrading a Previous Version of a product to a Current Version of a different edition of the same

product, for example: “ShipConstructor 2012 Pipe Premium” to “ShipConstructor 2015 Pipe Ultimate”

HOW DO I KNOW WHICH PRODUCTS CAN BE UPGRADED, AND TO WHAT?

Generally speaking, most products and suites can be upgraded.


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Because the modular and suites are so different, when upgrading from individual products (modular) to suites, we will apply a software value conversion. There are situations where it would cost more than an outright purchase of the product.

Your SSI representative has access to an Upgrade Eligibility Matrix and can provide specifics.

DOES THIS ALLOW CLIENTS TO SWITCH BACK AND FORTH AS OFTEN AS THEY WANT?

Yes. Generally it makes sense to swap products when a major shift in requirements has occurred. Depending on

the frequency of swap, multiple Upgrades may exceed the cost of just purchasing the additional licenses. Upgrades

in conjunction with Rental, and Lease plans can be a very cost effective way to manage a changing workforce.

7 – RENT & LEASE

WHAT NEW RENT OPTIONS ARE AVAILABLE?

We have added quarterly and annual rental terms. These do not apply to leasing of licenses.

I. Quarterly – This new term option provides slightly better cost/benefit for clients who have slightly longer

project duration and certainty. The cost is only slightly lower than renting for 3 consecutive Monthly

terms.

II. Annual – This option is for clients with known work at least as far out as the 8-12 month horizon from date of commencement, but with some uncertainty around future work (offshore projects where the software is selected per project are an example), or a cash flow issue prohibiting an outright purchase. This option requires a significantly lower initial cash outlay than a purchase and lower cost over any longer period than the current Monthly & Quarterly rental options.

8 – LICENSING

WHY THE CHANGE?

Our new licensing technology – purely software files – has significant advantages over our previous hardware

locks/licenses:

1. Any client who has ever corrupted a hardware lock understands the frustration associated with the

replacement turnaround time necessarily associated with snail mail. The new licensing is 100% software

and as such a new file can be sent as easily as sending an attachment to an email.

2. The previous lock only allowed a finite number of Bytes to be written to the lock. With all the new SSI

offerings which include products and suites as well as future planned additions we simply do not have the

space to support all of SSI’s licensing requirements.

3. Piracy of our previous software is relatively easy as the sentinel lock we used has an emulator that is

common and widely adopted (by pirates). Our new licensing adopts state of the art encryption and anti-

piracy safeguards. (Remember – piracy adds cost to the honest user.)

4. Our custom developed licensing client & server required ongoing development and maintenance (debug,

fix and test). The new system is a well-established, 3rd party product. We can focus on our areas of


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expertise – CAD/CAM software – and we will let the experts in licensing technology focus on their area of

expertise.

5. Our previous licensing does not support some of the latest licensing capabilities our clients will surely be

asking for:

a. Roaming licensing and the management of roaming licenses

b. Fallback/Failsafe/redundant servers

c. Check-In and Check-Out of licenses

d. Optimally secure Virtual environments.

WILL THERE BE SIGNIFICANT DIFFERENCE IN ARCHITETURE?

There is not much difference between the old and new architecture. The only real difference is how the licensing

server determines what licenses are available. In the old architecture it read the USB lock, but with the new

architecture it reads encoded but readable files called “entitlements” that are located on a server (either locally or

on the network) rather than on a lock which was also available locally (plugged into a USB port on a workstation)

or on the network (plugged into a server) .

WHAT IS AN ENTITLEMENT?

An entitlement is in essence an encoded text file consisting of a “token” identifying the host computer and

“licenses” the host computer has access to. The license server reads the entitlement to determine what licenses

are available. This file is encoded for each client to provide the highest level of security.

An entitlement is similar to the legacy USB lock in that it contains licenses however an entitlement is tied to a host

computer and entitlements have much more flexibility. An entitlement has the ability to mix editions (previously

levels) and features (Network, Workshare, etc.) on the same entitlement.

An entitlement cannot be moved to another computer/server. If there is a need to move an entitlement please

contact [email protected].

WILL ALL CLIENTS NEED TO MOVE TO THE NEW LICENSING IMMEDIATELY?

No. While it will be our normal process in the future to send all Subscription Fulfillment licenses upon release of

the software in this case we will gradually release the new licensing. This is because of the nature of the new

technology and the administration processes around it.

WHEN WILL CLIENTS BE REQUIRED TO USE THE NEW TECHNOLOGY?

When a client renews Subscription they will receive the new licenses. By ShipConstructor 2016, all Subscription

Fulfillments and license updates will be only with the new licenses.

WILL SHIPCONSTRUCTOR 2015 REQUIRE THE NEW LICENSING?

Yes. Clients who use ShipConstructor 2015 will need to move to the new licensing technology.

mailto:[email protected]


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IS IT POSSIBLE TO MAINTAIN A MIXED LICENSE ENVIRONMENT?

Each version of ShipConstructor only supports one licensing technology. This restriction does not affect customers

who update all their ShipConstructor projects at the same time as much as those who need a multi-

ShipConstructor environment.

If all users require the same ShipConstructor version then you simply need to set up the licensing technology

supported by the version of ShipConstructor you have selected.

Complexity arises in organizations which update only a subset of their projects and therefore require different

versions of ShipConstructor which utilize different licensing technologies. When updating your licenses to the new

RLM license server you can no longer use those licenses on the versions of ShipConstructor which require the

legacy hardware locks. This will require planning and scheduling.

HOW CAN I USE SHIPCONSTRUCTOR 2015 AND OLDER VERSIONS

Clients who use ShipConstructor 2015 will need to move to the new licensing technology. When a client moves to

ShipConstructor 2015 licenses they must discontinue use of the USB locks. SSI is confident older versions of

ShipConstructor going back to ShipConstructor 2014 R2 will be updated to use the new licensing technology. Early

indications are that these updates will be possible going back as far as ShipConstructor 2012 R2.

CAN I HAVE DISTRIBUTED SERVERS

Yes. Some clients require multiple license servers across their environment for several reasons. ShipConstructor

can read licenses from several RLM license servers. This is done on the client in the same manner as it was done

with the previous licensing technology.

IF I HAVE A STANDALONE (LOCAL) LICENSE DO I STILL REQUIRE A SERVER

No you do not need a license server. The RLM license server is just for locks which are networked enabled.

CAN A USER WORK IN THE OFFICE, WORK AT HOME AND WORK ON THE ROAD AS THEY DID

IN THE PAST WITH A STANDALONE LOCK?

We will be implementing a CHECK IN/CHECK OUT system in a future release. This will require an entitlement token

for each workstation. Currently this will require duplicate purchase of the software required for each workstation.

In the short term this requirement will be reviewed on a case-by-case basis and will require a customized solution.

WHAT HAPPENS IF MY MACHINE DIES OR I UPGRADED TO A NEW MACHINE

Since the entitlements is tied to your machine, your previous entitlements will not work on your new machine. You

will be required to contact [email protected] to attain new entitlements.
mailto:[email protected]

Licensing Changes New Licensing Better Service More Flexible · ShipConstructor Software Inc. DBA...

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