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                     Virtualization & FlexNet Publisher
Virtualization & FlexNet Publisher
    Introduction                                                                                          Questions Software Producers Must Answer
    Almost all software licensing models eventually require                                               Based upon two Flexera Software-hosted virtualization
    either one license or a pool of licenses to be bound to a                                             summits, participating customers recognize their
    particular machine. While this was answered over the years                                            organizations must answer some the following questions:
    for physical machines, some virtualization technologies are                                           	 1.	 ave we defined a virtualization policy and has this
                                                                                                               H
    posing new challenges for software producers to enforce their                                              policy been communicated to our customers? Can
    license agreements using traditional licensing models.                                                     we use the same policy as we do for the physical
    	                                                                                                          hardware environment?
    Various analyst white papers purport that server virtualization
    has moved past the early adopter stage to that of strategic                                           	 2.	 ow many of our customers are using virtualization
                                                                                                               H
    virtualization. For example, Forrester reports the adoption of                                             today? Is there a compliance problem and can it be
    server virtualization in enterprise IT will reach 65% by 2009                                              quantified? What virtual platforms are our customers
    with 45% of x86 servers virtualized.1 This means software                                                  using and in combination with what OS platforms?
    producers must develop and communicate licensing policies                                             	 3.	 re there new markets available because of
                                                                                                               A
    that take into account their license server and applications                                               virtualization (e.g., time rental via SaaS)?
    will run on virtual machines. It also means that FlexNet
                                                                                                          	 4.	 hat specific problem do we want to solve (e.g.,
                                                                                                               W
    Publisher must provide the appropriate enforcement and
                                                                                                               Piracy, compliance, or both). Are we concerned with
    reporting tools to allow the software producer and their
                                                                                                               intentional vs. unintentional overuse?
    enterprise customers to confidently operate in this new
    virtual environment.                                                                                  	 5.	 hould pricing be based on physical or virtual
                                                                                                               S
                                                                                                               resources (sub-capacity pricing)?
    Flexera Software research indicates that most software                                                	 6.	 hould alternate pricing models be defined to license
                                                                                                               S
    producers have not modified their license policies to deal                                                 in virtual environments? Should we charge more based
    with virtualization. Longer term it is recognized that new                                                 upon the additional virtualization test matrix involved?
    usage based ways to monetize software must be considered.                                                  Is there a market to charge less for limited capability?
    However, in the short term existing hardware centric licensing
    models must be applied to virtual platforms.
                                                                                                          The results of a limited virtualization survey conducted
    This document describes how FlexNet Publisher will enable                                             during one of the aforementioned virtualization summits are
    the software producer to embrace virtualization by providing                                          summarized below.
    various means to enforce licensing on virtual machines.
    This paper describes approaches and technologies
    available today as well as those that are being considered in
    the future.



    1
        A
         s reported in the FORRESTER white paper entitled “x86 Virtualization Adopters Hit the Tipping
        Point,” November 30, 2007




2                                                                                                                 Flexera Software: FlexNet Publisher White Paper Series
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




As can be seen from these tables, most of the software producers surveyed indicate their organizations have not defined
and communicated their virtualization policy. While most have not quantified a specific compliance problem around
virtualization, it is recognized the potential for overuse is there and must be solved. Finally, most customers intend to
initially apply traditional licensing and pricing models to virtual environments.


Survey Results

  Question 1: Has your company defined and communicated your virtualization policy?                         % of Votes

  Yes                                                                                                          21%

  We are in process of creating a policy, but it is not complete.                                              21%

  We have not started on a virtualization policy.                                                              42%

  I don’t know.                                                                                                14%



  Question 2: Have you quantified a compliance problem around virtualization?                               % of Votes

  We have quantified a compliance problem and need to solve this problem.                                      20%

  We have not quantified a compliance problem, but we want the ability to enforce                              60%
  our license policies in virtual environments.

  We don’t care about enforcing or monitoring compliance around virtualization.                                 6%

  I don’t have an opinion at this time.                                                                        13%



  Question 3: Have you defined new ways to monetize your software around                                    % of Votes
  virtualization?

  No, we will use existing licensing and pricing models.                                                       64%

  No, but we have started to discuss this.                                                                     14%

  Yes, we have defined new models to better match our software usage within virtual                             7%
  environments.

  I don’t know.                                                                                                14%




Flexera Software: FlexNet Publisher White Paper Series                                                                                               3
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




    Types of Virtualization Technologies                                           Remote Control
    The most commonly known virtualization technology is                           (Also known as KVM over IP) – One person can control the
    virtual machine technology. However, there are other types.                    host computer at any one time. The keyboard and mouse
    Here is a partial inventory of those types, the vendors who                    connected to the host computer and to each of the guest
    supply the technology, and a summary of the software                           computers can be active simultaneously and thus compete
    licensing issues.                                                              to be the source of input. Keystroke and mouse events from
                                                                                   these different input sources can be interleaved. Also, the
    Virtual Machines                                                               video of each computer displays the same single desktop.
    With virtual machine technologies, each operating system                       Therefore, these solutions are not intended for multiple guest
    instance on a physical machine is made to believe it’s the                     computers to share the resources of the host computer at the
    only operating system running on that physical machine.                        same time.
    These technologies do this by virtualizing (abstracting)
    the machine’s hardware components, one virtual machine                         Remote control solutions do not represent a security
    instance per operating system instance.                                        vulnerability to license management systems. The ability
                                                                                   to remotely control a host computer does not enable a
    Application Virtualization / Application Isolation                             dishonest user to run more instances of licensed software
    With application isolation technologies, each application                      than they could already run if they were using the KVM
    instance running on an operating system instance is made                       attached to the host computer. Therefore, this document will
    to believe it’s the only application running on that operating                 not further discuss remote control technologies.
    system. These technologies do this by virtualizing the
    operating system’s file system (and registry on Windows),                      The remainder of the document will describe Flexera
    one virtual file system (and registry) instance per application                Software’s approach to providing our software producer
    instance. Some application isolation technologies also                         customers the tools necessary to deal with licensing within
    isolate the operating system’s global namespace, so objects                    virtual machine (server virtualization) environments using
    like semaphores are not shared between application                             FlexNet Publisher.
    instances. All other operating system services are shared
    between isolated and non-isolated application instance.

    Terminal Services
    With terminal services, one terminal server machine
    supports multiple user sessions. Each user session
    encapsulates the desktop environment of one remotely
    logged-in user. Each user is made to believe they are the
    only user on that machine.


      Virtualization Technology                     Vendor/Products                                                  Software Licensing Issue?

      Virtual Machines                              VMware: Workstation, ESX;                                        Affects licensing
                                                    Microsoft: Hyper-V, Virtual PC/Server;
                                                    Citrix: Xen Server, Desktop;
                                                    Parallels: Desktop and Server (Mac), Server
                                                    (Linux), Workstation (Windows and Linux);
                                                    Sun: Zones;
                                                    IBM pSeries: LPARs;
                                                    HP: VPars, Integrity

      Application Virtualization                    Microsoft: App-V;                                                Affects licensing
                                                    VMware: ThinApp;


      Terminal Services                             Microsoft: Terminal Server;                                      Affects licensing
                                                    Citrix: Presentation Server;
                                                    Sun: Secure Global Desktop

      Remote Control                                GoToMyPC, PCAnyWhere, VNC                                        No affect on licensing

    Figure 1: Partial List of Virtualization Technologies




4                                                                                               Flexera Software: FlexNet Publisher White Paper Series
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




Compliance and Piracy Challenges of Virtualization                                         challenges and approaches to mitigate this risk. Our
Software producers’ licensing policies and approaches                                      customers tell us that they want to apply traditional license
range from compliance for trusted customers to enforcement                                 models to virtual environments. This approach is important
for markets that pose more risk of intentional overuse or                                  in order to maintain backward compatibility with legacy
outright piracy. Traditional licensing models that bind the                                clients deployed at many end user locations.
license server or application to the physical machine have
worked well over the years. As software producers know,                                    The challenge for Flexera Software and FlexNet Publisher
any software license can be exploited by a determined                                      is there is no universal method to detect and interface with
hacker. However, traditional license enforcement                                           the multitude of virtualization platforms available today.
technologies, design practices, and processes do a good                                    To resolve this challenge, Flexera Software has engaged
job at keeping honest customers honest and to discourage                                   in dialogs with multiple virtualization vendors to define a
the casual exploiter.                                                                      supported interface method between FlexNet Publisher and
                                                                                           their platforms.
Virtualization technologies have changed this landscape
by making it very easy to create multiple virtual machines                                 Flexera Software has also developed a Virtualization API
on a single physical machine. While the advantages of                                      specification in collaboration with several virtualization
machine virtualization are obvious and enticing for the                                    vendors. This standard will provide a uniform interface
enterprise customer, this technology poses challenges for                                  method that will allow FlexNet Publisher to more rapidly
the software producer using traditional license enforcement.                               support those virtualization platforms that adopt this
This is because virtual machines can be configured to have                                 standard. Other vendors have developed their own
the same attributes (e.g., MAC address, port number, IP                                    API’s and architectures to accomplish this interface
address, etc.) that match an existing license file. While the                              (although with varying degrees of complexity, effectiveness,
risk is low for widespread piracy of a licensed application,                               and overhead).
there is potential high risk of the license server being
replicated on many virtual machines making available many                                  Flexera Software’s Approach to Virtualization
more entitlements than were purchased. This situation is                                   Flexera Software’s virtualization roadmap for FlexNet
depicted in Figure 2 below.                                                                Publisher enables the software producer to establish an
                                                                                           enforcement strategy based upon the level of trust they have
                                                                                           with their customers. The trust range is graphically shown
          License Server                               License Server
         Bound to Physical                            Bound to Virtual                     Figure 3 below.
           Hardware is                                  Hardware is
         Hard to Replicate                            Easy to Replicate
                                                                                              STRONG                     WEAK                       NONE

                                                      Guest OS
     Operating System
                                      VM Hypervisor




                                                      Guest OS
                                                                                            Permission: Allow             Permission: Allow Permission: Prohibit
            LICENSE
            SERVER                                                                          Binding: VM Container Binding: Physical Binding: N/A
                                                      Guest OS
                                                                    LICENSE
                                                                    SERVER                  Report: Log File              Report: Log File       Report: N/A

                                                                                           Figure 3: Range of Trust between Software Producers and
                                                                                           their Markets

                                                                                           For markets or customers where no trust exists, the publisher
                                                                                           can detect the presence of virtual machines and decide
                                  Guest
                                  Gues
                                  Gue t OS
                                  Guest O
                                   ue                                                      not to allow the license server to run or not to issue a
                            Guest OS
                            Guest OS
                                st
                                 t                        LC
                                                          LIC N
                                                          LICENSE
                                                            CEN
                       Guest OS         LC
                                        LIC N
                                        LICENSE
                                          CEN
                                        SERVER
                                        SE V
                                          ERV
                                          E
                                                          SERVER
                                                          SE V
                                                            ERV
                                                            E
                                                                                           license to an application that is installed on a virtual
                                     LICENSE
                                     SERVER
                                                                                           machine. Referring to the above diagram, permission to
                                                                                           run on a virtual machine (VM) would be denied, therefore,
                                                                                           no binding and reporting would come into play. This
Figure 2: License Server Instances Bound to Physical or                                    approach is perhaps the safest for the producer and may be
Virtual Hardware
                                                                                           justified for risky markets. However, the reality of enterprise
Over the past several years, Flexera Software has                                          virtualization and the affect on customer satisfaction that
collaborated with many software producer customers as                                      may result must also be considered.
well as virtualization vendors about license enforcement




Flexera Software: FlexNet Publisher White Paper Series                                                                                                                    5
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




    For markets or customers where strong trust exists, the                        Care is taken such that false positives are not generated for
    publisher can first detect the presence of a virtual machine                   virtual machine detection, while at the same time ensuring
    and then bind the license server to the Universal Unique                       these techniques are not easily defeated. Once the software
    Identifier (UUID) of the VM container. Likewise, the license                   identifies that it is being run on a virtual machine, the
    file for an application can also be bound to the UUID of                       software producer can implement within their software an
    a particular VM container. While it is true that UUID’s can                    appropriate action based on a defined virtualization policy.
    be replicated and applied to additional virtual machines                       Some of the business policies that can be enforced include
    (either on the same or on different physical machines),                        the ability to:
    virtualization management software is almost always present
    (such as VMware’s vCenter) that will detect this condition                     	 1.	 efuse to start the license server in a virtual
                                                                                        R
    and issue system errors until this situation is corrected. In                       environment.
    this scenario, permission to run on a VM is granted but VM                     	 2.	 efuse to enable a particular feature of the
                                                                                        R
    container binding is also enforced to increase confidence                           application in a virtual environment.
    that license entitlements are not replicated on additional                     	 3.	 estrict a software feature to be functional only in a
                                                                                        R
    virtual machines. With this approach, the end user of                               virtual environment.
    the license can take full advantage of the advanced VM
    functionalities like high-availability and fault tolerance, since              The following segment describes some use cases where the
    the licenses can be moved from one physical machine to                         virtual machine detection capabilities can be useful and
    another without failure. The FlexNet Publisher report log                      the FlexNet Publisher syntax needed to implement the
    contains both virtual and physical platform data and license                   desired capability:
    checkout denial information.
                                                                                   	1.	oftware Producer A deploys only a served licensing
                                                                                      S
                                                                                      
    For those markets and customers deemed to be in the                               model. They market low-volume, high-cost software
    middle of the trust range, the publisher can detect the                           and both casual and intentional piracy is a big
    presence of a virtual machine and then bind to a physical                         concern for them. They do not want their license
    hardware element (or combination of elements) of the host                         server to be deployed in a virtual machine due to the
    machine (e.g., MAC address). Included in binding is a                             ease with which this can lead to license over usage.
    mutex locking mechanism to ensure the license server is not                       They will instead require their customers to locate their
    copied and able to issue licenses from a second VM on the                         license server on a physical machine within the
    same hardware platform. In this scenario, permission to run                       data center.
    on a VM is granted but physical binding is also required
    to increase confidence that license entitlements are not                       	             •  his is implemented by the software publisher by
                                                                                                   T
    replicated. The report log will contain virtual and physical                                   setting a compile time switch within the license
    platform data and license checkout denial information.                                         server customization code. Specifically, within
    This approach is more secure than VM container binding,                                        the file lsvendor.c the following variable setting
    but will not support use cases such as high-availability or                                    is made and the license server is built:
    fail-over where the VM will move from one physical server
    to another.                                                                    		FLEX_VM_TYPE ls_allow_vm = PHYSICAL; /* Restrict
                                                                                      VD to a physical m/c only */
    The software producer must first answer some of the
    questions presented at the beginning of this paper to                          	 2.	 oftware producer B deploys both served and
                                                                                        S
    quantify the problems they want to address and then                                 unserved licensing models. Certain features of their
    determine the appropriate license enforcement response for                          application cannot run on virtual machines (e.g.,
    the markets and customers they serve.                                               they require connecting a measurement instrument
                                                                                        using a USB port that is not supported on a virtual
    License Enforcement Using Virtual Machine Detection                                 platform). They would like to disable these features on
    FlexNet Publisher offers license enforcement options based                          virtual machines while at the same time allowing the
    on virtual machine detection. This release incorporates a                           other product features to function on both virtual and
    number of published techniques to identify virtual machine                          physical platforms.
    platforms to allow the FlexNet Publisher vendor daemons
    and FLEX-enabled applications to identify if they are being                    	             •  his is implemented by the software publisher by
                                                                                                   T
    run on a virtual machine. While the techniques implemented                                     using the license file keyword VM_PLATFORMS
    allow the detection of a number of different virtual machine                                   on the FEATURE line as shown below:
    platforms, this release specifically supports the VMware ESX
    Server and Workstation products.                                               		FEATURE measure_voltage admld 2.5 01-jan-2012
                                                                                      4
                                                                                   		VM_PLATFORMS=PHYSICAL SIGN=”00E3 ……”




6                                                                                               Flexera Software: FlexNet Publisher White Paper Series
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




	 3.	 oftware producer C deploys their software primarily
     S                                                                           Over usage can still happen if multiple instances of a virtual
     using the unserved, node-locked license model. They                         machine, running on the same physical machine, are used
     are concerned about software piracy, particularly with                      to run the license server. To eliminate this condition, a
     their non-enterprise users and would like to restrict                       facility that will enforce a mutex lock is needed so only one
     their software to physical hardware. However, they                          instance of a license server (of one software producer) is
     do want to support certain trusted enterprise customers                     being run on a given physical machine.
     who want to use their software on virtual machine
     instances. In short, they want to control the ability of                    FlexNet Publisher v11.8 will provide both bare metal
     their software to function on a virtual machine (or not)                    binding and mutex locking. These two technologies are
     via the license file.                                                       depicted in the solutions shown in figure 4.

	                    • This is implemented by the software publisher by
                                                                                This approach provides advantages to both the software
                       using the license file keyword VM_PLATFORMS               producer and their enterprise customers. The software
                       on the FEATURE line as shown below and                    producer has reasonable assurance of a relatively secure
                       granting these licenses on a case-by-case basis:          licensing solution, while the license administrator can
                                                                                 deploy the licensing solution in a data center with virtual
		FEATURE ultraplot admld 3.5 01-may-2011 4                                    machine installations.
		VM_PLATFORMS=VM_ONLY SIGN=”00E3 ……”
                                                                                 The following segment describes some use cases where
License Enforcement Using Bare Metal Binding                                     both virtual machine detection and bare metal binding
As discussed earlier, binding the licenses to virtual machine                    capabilities can be combined using FlexNet Publisher
hardware may lead to license over usage due to the ease                          features and syntax to implement more robust license
with which the virtual hardware can be replicated. To                            enforcement capability:
reduce the possibility of license over usage in markets where
weak trust exists, binding the licenses to physical hardware                     	 1.	 he example of Software Producer A deploying only
                                                                                      T
elements is recommended. In this method, the license server                           a served licensing model described in the License
(or the client applications) running on virtual machines will                         Enforcement Using Virtual Machine Detection section
bypass the virtual hardware and establish bindings with the                           above is expanded upon. Using the new capability
host system (or the bare metal). In this situation, even if the                       available in FlexNet Publisher the producer can
virtual machine in which the license server is running is later                       expand upon the virtualization detection implemented
copied, the bindings break rendering the license                                      previously to include bare metal binding and
server inoperable.                                                                    mutex detection for additional license enforcement
                                                                                      capability, while not having to build different versions
While the bare metal binding solves the problem of a                                  of the license server. This allows the producer to
license being copied from one physical host to the next, it                           selectively relax their requirement of a license server
doesn’t eliminate the possibility of over usage.                                      only running on a physical machine on a case-by-case
                                                                                      basis for increased customer satisfaction.

                    Bare Metal Binding         Bare Metal Binding wit h
                                                 Mutex Lock Prevents             	          •  his is implemented by the software producer by
                                                                                              T
                    Makes t he Licenses
                                               Mult iple Instances of t he                    using special hostid keywords on the SERVER
                      Hard to Copy
                                                License Server on t he                        line in the license files introduced in FNP. These
                                                  Same Physical Box
                                                                                              hostid types specify: a) the platform type that
                                                                                              the license server is authorized to run on, and
                                                                                              b) the hostid type. Some examples are shown
                    Guest OS                     Guest OS      L
                                                               LICENSE                        below:
                                                               S
                                                               SERVER
    VM Hypervisor




                                                                                 	          •  xample 1: To restrict the license server to
                                                                                              E
                    Guest OS                     G
                                                 Gu t O
                                                 Guest OS                                     VMware ESX server and to use the Ethernet
                                                                                              address of the physical hardware, specify:

                    Guest OS                     G t
                                                 Guest OS                        		SERVER this_host VMW_ETHER=1234
                                LICENSE                        LICENSE
                                SERVER                         SERVER

                                                                                 	          •  xample 2: To restrict the license server to a
                                                                                              E
                                                                                              physical machine and to use the IP address of
                                                                                              the machine as the hostid type, specify:

Figure 4: Solutions with Bare Metal Binding and Mutex Lock                       		SERVER this_host PHY_INTERNET=10.10.12.101




Flexera Software: FlexNet Publisher White Paper Series                                                                                                          7
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




    License Enforcement Using the UUID                                             Virtualization and Trusted Storage
    In situations where strong trust exists between software                       The FlexNet Publisher Trusted Storage solution presents its
    producers and their customers, it may be desirable to define                   own unique challenges related to license over usage in a
    a more flexible binding method that can be included within                     virtual environment. The affected functionalities are
    a licensing policy. FlexNet Publisher v11.8 will provide                       three-fold:	
    the capability to bind the license server to the UUID of the                   	      •	Anchoring
    virtual machine container.                                                     	      •	Binding
                                                                                   	      •	Machine Identification Activation Transactions
    As previously stated, while it is recognized the UUID can
    be replicated and applied to additional virtual machines,                      These topics are discussed in a little more detail below.
    virtualization management software (that is almost always                      The Trusted Storage technology uses system anchors to
    present) ensures the UUID is unique on the network.                            identify if the trusted storage has been restored from a
                                                                                   backup or overwritten. These are really links to one or more
                                                                                   system identifiers that cross-check the integrity of the Trusted
                                                                                   Storage file with the system. Different anchor types are used
                                                                                   on different operating systems, with some anchors being
                                                                                   much harder to spoof by a user than others. However,
                                 Virtualizat ion                                   a Trusted Storage solution running on a virtual machine
                                 Management                                        only has access to the virtual anchor types, which can be
                                                                                   reverted back quite easily. This affects the trial anchors
                                                                                   implemented by the Trusted Storage solution, with the result
              VM1          License              VM4    License
            UUID=XYZ       Server             UUID=AAA Server                      that the trials can be retaken endlessly. The solution to this
                           UUID=                              UUID
                                                               UID
                                                              UUID=                problem would consist of storing the anchor information on
                             XYZ                               XYZ
                                                                                   the physical host of the virtual machine.
              VM2    License                     VM5          License
            UUID=ABC Server                    UUID=BBB       Server               The license rights that are held in Trusted Storage are locked
                            UUID=
                            UUID                              UUID=
                                                              UUID                 to a system to prevent them from being transferred illegally
                             XYZ
                               Z                                XYZ
                                                                  Z
                                                                                   to another system. This is referred to as binding and the
                                                                                   system characteristics use for the binding are referred to
              VM3    Lic se
                     License                    VM6    License
                                                                                   as binding identities. The problem with virtual machines
            UUID=123 Server
                     Serve
                       erver
                         ver
                          e                   UUID=CCC Server
                                                         erver
                            UUID=
                            UUID
                               D=                             UUID=
                                                              UUID                 with respect to binding is similar to that of License File
                             XYZ
                              YZ
                               Z                               XYZ
                                                                YZ
                                                                 Z
                                                                                   based licensing – that the binding identities too easily
                                                                                   duplicated when you copy a virtual machine. The solution
               ESX SERVER                         ESX SERVER
                                                                                   to the problem is also the same – use the physical binding
            PHYSICAL MACHINE                   PHYSICAL MACHINE
                                                                                   identities instead of the virtual ones.
    Figure 5: Binding to the UUID of the VM Container
                                                                                   The Trusted Storage activation technology relies upon
    Allowing the enterprise customer to bind to the UUID of the                    uniquely identifying a machine (using UMN values) when
    virtual machine container will allow them to support the                       performing transactions with the activation server (such as
    license server and the flexibility to take advantage of other                  the FlexNet Operations). This is required so that in case
    advanced virtualization management capability (such as a                       of a repair or return transaction, the activation server
    high-availability configuration) providing greater flexibility                 can ensure that the same machine that has activated the
    and security to their operation.                                               original license is involved in these transactions. With the
                                                                                   virtualization technology, it is very easy to setup multiple
    	          • This is implemented by the software producer by
                                                                                  machines that look to be the same hence resulting in license
                 using special hostid keywords on the SERVER                       over usage. The solution, once again, would rely upon using
                 line in the license files introduced in FNP v11.8.                physical elements for machine identification in combination
                 For example, To restrict the license server to                    with virtual machine identities.
                 VMware ESX and to use the UUID of the virtual
                 machine instance, specify:                                        Entitlement and Compliance Management
                                                                                   License enforcement in virtualization environments is
    		SERVER this_host VMW_UUID=1234…                                             only one component of an end-to-end entitlement and
                                                                                   compliance management (ECM) solution.




8                                                                                               Flexera Software: FlexNet Publisher White Paper Series
Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses




In addition to the concerns and approaches presented to              software runs on a virtual machine. For example, one new
address license over usage, there are other considerations           capability available in VMware’s vSphere 4.0 hypervisor
related to license life cycle activities that may have a             and management toolset is the ability to dynamically
bearing on a software producer’s virtualization policies.            allocate virtual CPUs (vCPUs). This capability will further
For example, a software producer may want to gather                  play havoc with CPU based licensing.
data on how many of their products are being used on
physical machines vs. virtual machines. Such data would              Research by software industry analysts substantiate the
be invaluable to better understand markets and specific              industry trend away from hardware based licensing
customers so these usage patterns can be evaluated as                models toward usage based models such as subscription
new licensing models are considered for virtualization               and SaaS.2 As has been presented in this paper, the
deployments. This information would also help the software           fundamental byproduct of virtualization technology serves to
producer ensure their support staff is appropriately trained         remove the time-honored hardware hooks and metrics that
to handle real-world customer deployments.                           producers have depended upon to secure and monetize
                                                                     their software.
Gathering of such data can be easily achieved if the license
activation server (such as FlexNet Operations) actively logs         FlexNet Publisher will provide the tools necessary for our
the platform type on which the license rights are requested.         customers to embrace server virtualization that is now so
Similar logging of the platform data can be done on the              prevalent in the enterprise.
license user side via the report log files generated by the
FlexNet Publisher license servers. These report log files can        About FlexNet Publisher
then be analyzed using FlexNet Manager to extract the                Part of Flexera Software’s Entitlement and Compliance
virtual platform related statistics.                                 Management Solution, FlexNet Publisher enables software
                                                                     producers and high-tech manufacturers to increase revenues
Other Possibilities                                                  and simplify customer relationships.
Advanced product offerings from the virtualization vendors
open up many possibilities to ensure the reliability of a            The flexible, yet robust licensing capabilities provided
license server. For example, the High Availability/Fault             by FlexNet Publisher allow producers and high-tech
Tolerance features offered by virtualization vendors can             manufacturers to address piracy and ensure protection
ensure the license server will never need to be shut down.           of intellectual property, as well as to react quickly and
In fact with appropriate usage, the need for three server            efficiently to new and evolving markets through creation of
redundancy solutions may also be obviated.                           new pricing models and versatile product configurations.

Best Practices for the Software Producer                             FlexNet Publisher is the industry leader, with over 20
Flexera Software recommends the software producer start              years of experience, a proven track record, more than
with a more restrictive approach to their policy of allowing         3,000 thousand customers and over 20,000 FLEX enabled
the license server to run in virtual environments and then           applications to date. FlexNet was awarded the “Industry best
later relax the policy on a case-by-case basis. Starting with        software product for software producers” in 2007 by SIIA.
FlexNet Publisher v11.7, the license server can be restricted
to a physical machine only without needing a change in the           About Flexera Software
license file. Then, with FlexNet Publisher v11.8, the new            Flexera Software is the leading provider of strategic
license file syntax can be utilized along with a new license         solutions for Application Usage Management; solutions
server. The new license file syntax can be released to the           delivering continuous compliance, optimized usage and
customers at the time of license renewals so as to cause             maximized value to application producers and their
least disruption to the services.                                    customers. Flexera Software is trusted by more than 80,000
                                                                     customers that depend on our comprehensive solutions -
Caution: If the license server is built and deployed to run          from installation and licensing, entitlement and compliance
on virtual machines, this exposure cannot be retracted. It is,       management to application readiness and software license
therefore, suggested to use the approach discussed in                optimization - to strategically manage application usage
this section.                                                        and achieve breakthrough results realized only through the
                                                                     systems-level approach we provide. For more information,
Conclusion/Summary                                                   please go to: www.flexerasoftware.com
As mentioned at the beginning of this paper, most software
producers will initially apply traditional licensing models to            For more information on FlexNet Publisher and
virtual environments. Longer term, most also recognize the                FlexNet Suite, please visit:
challenges placed upon these traditional models when their                www.flexerasoftware.com/fnp


                                                                     2
                                                                      As reported in IDC’s Briefing “Going Hybrid with SaaS - Managing Perpetual and Subscription
                                                                     Businesses in the Same Chassis” on June 17th, 2009 with Amy Konary.



       Flexera Software: FlexNet Publisher White Paper Series                                                                                                       9
Flexera Software LLC                     Schaumburg                                United Kingdom (Europe,                   Australia (Asia,                           For more office locations visit:
1000 East Woodfield Road,                (Global Headquarters):                    Middle East Headquarters):                Pacific Headquarters):                     www.flexerasoftware.com
Suite 400                                +1 800-809-5659                           +44 870-871-1111                          +61 3-9895-2000
Schaumburg, IL 60173 USA                                                           +44 870-873-6300

Copyright © 2012 Flexera Software LLC. All other brand and product names mentioned herein may be the trademarks and registered trademarks of their respective owners.
												                                                                                                                                                             FNP_WP_Virtualization2_Sept12

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Virtualization & FlexNet Publisher

  • 1. W H I T E PA P E R Virtualization & FlexNet Publisher
  • 2. Virtualization & FlexNet Publisher Introduction Questions Software Producers Must Answer Almost all software licensing models eventually require Based upon two Flexera Software-hosted virtualization either one license or a pool of licenses to be bound to a summits, participating customers recognize their particular machine. While this was answered over the years organizations must answer some the following questions: for physical machines, some virtualization technologies are 1. ave we defined a virtualization policy and has this H posing new challenges for software producers to enforce their policy been communicated to our customers? Can license agreements using traditional licensing models. we use the same policy as we do for the physical hardware environment? Various analyst white papers purport that server virtualization has moved past the early adopter stage to that of strategic 2. ow many of our customers are using virtualization H virtualization. For example, Forrester reports the adoption of today? Is there a compliance problem and can it be server virtualization in enterprise IT will reach 65% by 2009 quantified? What virtual platforms are our customers with 45% of x86 servers virtualized.1 This means software using and in combination with what OS platforms? producers must develop and communicate licensing policies 3. re there new markets available because of A that take into account their license server and applications virtualization (e.g., time rental via SaaS)? will run on virtual machines. It also means that FlexNet 4. hat specific problem do we want to solve (e.g., W Publisher must provide the appropriate enforcement and Piracy, compliance, or both). Are we concerned with reporting tools to allow the software producer and their intentional vs. unintentional overuse? enterprise customers to confidently operate in this new virtual environment. 5. hould pricing be based on physical or virtual S resources (sub-capacity pricing)? Flexera Software research indicates that most software 6. hould alternate pricing models be defined to license S producers have not modified their license policies to deal in virtual environments? Should we charge more based with virtualization. Longer term it is recognized that new upon the additional virtualization test matrix involved? usage based ways to monetize software must be considered. Is there a market to charge less for limited capability? However, in the short term existing hardware centric licensing models must be applied to virtual platforms. The results of a limited virtualization survey conducted This document describes how FlexNet Publisher will enable during one of the aforementioned virtualization summits are the software producer to embrace virtualization by providing summarized below. various means to enforce licensing on virtual machines. This paper describes approaches and technologies available today as well as those that are being considered in the future. 1 A s reported in the FORRESTER white paper entitled “x86 Virtualization Adopters Hit the Tipping Point,” November 30, 2007 2 Flexera Software: FlexNet Publisher White Paper Series
  • 3. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses As can be seen from these tables, most of the software producers surveyed indicate their organizations have not defined and communicated their virtualization policy. While most have not quantified a specific compliance problem around virtualization, it is recognized the potential for overuse is there and must be solved. Finally, most customers intend to initially apply traditional licensing and pricing models to virtual environments. Survey Results Question 1: Has your company defined and communicated your virtualization policy? % of Votes Yes 21% We are in process of creating a policy, but it is not complete. 21% We have not started on a virtualization policy. 42% I don’t know. 14% Question 2: Have you quantified a compliance problem around virtualization? % of Votes We have quantified a compliance problem and need to solve this problem. 20% We have not quantified a compliance problem, but we want the ability to enforce 60% our license policies in virtual environments. We don’t care about enforcing or monitoring compliance around virtualization. 6% I don’t have an opinion at this time. 13% Question 3: Have you defined new ways to monetize your software around % of Votes virtualization? No, we will use existing licensing and pricing models. 64% No, but we have started to discuss this. 14% Yes, we have defined new models to better match our software usage within virtual 7% environments. I don’t know. 14% Flexera Software: FlexNet Publisher White Paper Series 3
  • 4. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses Types of Virtualization Technologies Remote Control The most commonly known virtualization technology is (Also known as KVM over IP) – One person can control the virtual machine technology. However, there are other types. host computer at any one time. The keyboard and mouse Here is a partial inventory of those types, the vendors who connected to the host computer and to each of the guest supply the technology, and a summary of the software computers can be active simultaneously and thus compete licensing issues. to be the source of input. Keystroke and mouse events from these different input sources can be interleaved. Also, the Virtual Machines video of each computer displays the same single desktop. With virtual machine technologies, each operating system Therefore, these solutions are not intended for multiple guest instance on a physical machine is made to believe it’s the computers to share the resources of the host computer at the only operating system running on that physical machine. same time. These technologies do this by virtualizing (abstracting) the machine’s hardware components, one virtual machine Remote control solutions do not represent a security instance per operating system instance. vulnerability to license management systems. The ability to remotely control a host computer does not enable a Application Virtualization / Application Isolation dishonest user to run more instances of licensed software With application isolation technologies, each application than they could already run if they were using the KVM instance running on an operating system instance is made attached to the host computer. Therefore, this document will to believe it’s the only application running on that operating not further discuss remote control technologies. system. These technologies do this by virtualizing the operating system’s file system (and registry on Windows), The remainder of the document will describe Flexera one virtual file system (and registry) instance per application Software’s approach to providing our software producer instance. Some application isolation technologies also customers the tools necessary to deal with licensing within isolate the operating system’s global namespace, so objects virtual machine (server virtualization) environments using like semaphores are not shared between application FlexNet Publisher. instances. All other operating system services are shared between isolated and non-isolated application instance. Terminal Services With terminal services, one terminal server machine supports multiple user sessions. Each user session encapsulates the desktop environment of one remotely logged-in user. Each user is made to believe they are the only user on that machine. Virtualization Technology Vendor/Products Software Licensing Issue? Virtual Machines VMware: Workstation, ESX; Affects licensing Microsoft: Hyper-V, Virtual PC/Server; Citrix: Xen Server, Desktop; Parallels: Desktop and Server (Mac), Server (Linux), Workstation (Windows and Linux); Sun: Zones; IBM pSeries: LPARs; HP: VPars, Integrity Application Virtualization Microsoft: App-V; Affects licensing VMware: ThinApp; Terminal Services Microsoft: Terminal Server; Affects licensing Citrix: Presentation Server; Sun: Secure Global Desktop Remote Control GoToMyPC, PCAnyWhere, VNC No affect on licensing Figure 1: Partial List of Virtualization Technologies 4 Flexera Software: FlexNet Publisher White Paper Series
  • 5. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses Compliance and Piracy Challenges of Virtualization challenges and approaches to mitigate this risk. Our Software producers’ licensing policies and approaches customers tell us that they want to apply traditional license range from compliance for trusted customers to enforcement models to virtual environments. This approach is important for markets that pose more risk of intentional overuse or in order to maintain backward compatibility with legacy outright piracy. Traditional licensing models that bind the clients deployed at many end user locations. license server or application to the physical machine have worked well over the years. As software producers know, The challenge for Flexera Software and FlexNet Publisher any software license can be exploited by a determined is there is no universal method to detect and interface with hacker. However, traditional license enforcement the multitude of virtualization platforms available today. technologies, design practices, and processes do a good To resolve this challenge, Flexera Software has engaged job at keeping honest customers honest and to discourage in dialogs with multiple virtualization vendors to define a the casual exploiter. supported interface method between FlexNet Publisher and their platforms. Virtualization technologies have changed this landscape by making it very easy to create multiple virtual machines Flexera Software has also developed a Virtualization API on a single physical machine. While the advantages of specification in collaboration with several virtualization machine virtualization are obvious and enticing for the vendors. This standard will provide a uniform interface enterprise customer, this technology poses challenges for method that will allow FlexNet Publisher to more rapidly the software producer using traditional license enforcement. support those virtualization platforms that adopt this This is because virtual machines can be configured to have standard. Other vendors have developed their own the same attributes (e.g., MAC address, port number, IP API’s and architectures to accomplish this interface address, etc.) that match an existing license file. While the (although with varying degrees of complexity, effectiveness, risk is low for widespread piracy of a licensed application, and overhead). there is potential high risk of the license server being replicated on many virtual machines making available many Flexera Software’s Approach to Virtualization more entitlements than were purchased. This situation is Flexera Software’s virtualization roadmap for FlexNet depicted in Figure 2 below. Publisher enables the software producer to establish an enforcement strategy based upon the level of trust they have with their customers. The trust range is graphically shown License Server License Server Bound to Physical Bound to Virtual Figure 3 below. Hardware is Hardware is Hard to Replicate Easy to Replicate STRONG WEAK NONE Guest OS Operating System VM Hypervisor Guest OS Permission: Allow Permission: Allow Permission: Prohibit LICENSE SERVER Binding: VM Container Binding: Physical Binding: N/A Guest OS LICENSE SERVER Report: Log File Report: Log File Report: N/A Figure 3: Range of Trust between Software Producers and their Markets For markets or customers where no trust exists, the publisher can detect the presence of virtual machines and decide Guest Gues Gue t OS Guest O ue not to allow the license server to run or not to issue a Guest OS Guest OS st t LC LIC N LICENSE CEN Guest OS LC LIC N LICENSE CEN SERVER SE V ERV E SERVER SE V ERV E license to an application that is installed on a virtual LICENSE SERVER machine. Referring to the above diagram, permission to run on a virtual machine (VM) would be denied, therefore, no binding and reporting would come into play. This Figure 2: License Server Instances Bound to Physical or approach is perhaps the safest for the producer and may be Virtual Hardware justified for risky markets. However, the reality of enterprise Over the past several years, Flexera Software has virtualization and the affect on customer satisfaction that collaborated with many software producer customers as may result must also be considered. well as virtualization vendors about license enforcement Flexera Software: FlexNet Publisher White Paper Series 5
  • 6. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses For markets or customers where strong trust exists, the Care is taken such that false positives are not generated for publisher can first detect the presence of a virtual machine virtual machine detection, while at the same time ensuring and then bind the license server to the Universal Unique these techniques are not easily defeated. Once the software Identifier (UUID) of the VM container. Likewise, the license identifies that it is being run on a virtual machine, the file for an application can also be bound to the UUID of software producer can implement within their software an a particular VM container. While it is true that UUID’s can appropriate action based on a defined virtualization policy. be replicated and applied to additional virtual machines Some of the business policies that can be enforced include (either on the same or on different physical machines), the ability to: virtualization management software is almost always present (such as VMware’s vCenter) that will detect this condition 1. efuse to start the license server in a virtual R and issue system errors until this situation is corrected. In environment. this scenario, permission to run on a VM is granted but VM 2. efuse to enable a particular feature of the R container binding is also enforced to increase confidence application in a virtual environment. that license entitlements are not replicated on additional 3. estrict a software feature to be functional only in a R virtual machines. With this approach, the end user of virtual environment. the license can take full advantage of the advanced VM functionalities like high-availability and fault tolerance, since The following segment describes some use cases where the the licenses can be moved from one physical machine to virtual machine detection capabilities can be useful and another without failure. The FlexNet Publisher report log the FlexNet Publisher syntax needed to implement the contains both virtual and physical platform data and license desired capability: checkout denial information. 1. oftware Producer A deploys only a served licensing S For those markets and customers deemed to be in the model. They market low-volume, high-cost software middle of the trust range, the publisher can detect the and both casual and intentional piracy is a big presence of a virtual machine and then bind to a physical concern for them. They do not want their license hardware element (or combination of elements) of the host server to be deployed in a virtual machine due to the machine (e.g., MAC address). Included in binding is a ease with which this can lead to license over usage. mutex locking mechanism to ensure the license server is not They will instead require their customers to locate their copied and able to issue licenses from a second VM on the license server on a physical machine within the same hardware platform. In this scenario, permission to run data center. on a VM is granted but physical binding is also required to increase confidence that license entitlements are not • his is implemented by the software publisher by T replicated. The report log will contain virtual and physical setting a compile time switch within the license platform data and license checkout denial information. server customization code. Specifically, within This approach is more secure than VM container binding, the file lsvendor.c the following variable setting but will not support use cases such as high-availability or is made and the license server is built: fail-over where the VM will move from one physical server to another. FLEX_VM_TYPE ls_allow_vm = PHYSICAL; /* Restrict VD to a physical m/c only */ The software producer must first answer some of the questions presented at the beginning of this paper to 2. oftware producer B deploys both served and S quantify the problems they want to address and then unserved licensing models. Certain features of their determine the appropriate license enforcement response for application cannot run on virtual machines (e.g., the markets and customers they serve. they require connecting a measurement instrument using a USB port that is not supported on a virtual License Enforcement Using Virtual Machine Detection platform). They would like to disable these features on FlexNet Publisher offers license enforcement options based virtual machines while at the same time allowing the on virtual machine detection. This release incorporates a other product features to function on both virtual and number of published techniques to identify virtual machine physical platforms. platforms to allow the FlexNet Publisher vendor daemons and FLEX-enabled applications to identify if they are being • his is implemented by the software publisher by T run on a virtual machine. While the techniques implemented using the license file keyword VM_PLATFORMS allow the detection of a number of different virtual machine on the FEATURE line as shown below: platforms, this release specifically supports the VMware ESX Server and Workstation products. FEATURE measure_voltage admld 2.5 01-jan-2012 4 VM_PLATFORMS=PHYSICAL SIGN=”00E3 ……” 6 Flexera Software: FlexNet Publisher White Paper Series
  • 7. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses 3. oftware producer C deploys their software primarily S Over usage can still happen if multiple instances of a virtual using the unserved, node-locked license model. They machine, running on the same physical machine, are used are concerned about software piracy, particularly with to run the license server. To eliminate this condition, a their non-enterprise users and would like to restrict facility that will enforce a mutex lock is needed so only one their software to physical hardware. However, they instance of a license server (of one software producer) is do want to support certain trusted enterprise customers being run on a given physical machine. who want to use their software on virtual machine instances. In short, they want to control the ability of FlexNet Publisher v11.8 will provide both bare metal their software to function on a virtual machine (or not) binding and mutex locking. These two technologies are via the license file. depicted in the solutions shown in figure 4. • This is implemented by the software publisher by This approach provides advantages to both the software using the license file keyword VM_PLATFORMS producer and their enterprise customers. The software on the FEATURE line as shown below and producer has reasonable assurance of a relatively secure granting these licenses on a case-by-case basis: licensing solution, while the license administrator can deploy the licensing solution in a data center with virtual FEATURE ultraplot admld 3.5 01-may-2011 4 machine installations. VM_PLATFORMS=VM_ONLY SIGN=”00E3 ……” The following segment describes some use cases where License Enforcement Using Bare Metal Binding both virtual machine detection and bare metal binding As discussed earlier, binding the licenses to virtual machine capabilities can be combined using FlexNet Publisher hardware may lead to license over usage due to the ease features and syntax to implement more robust license with which the virtual hardware can be replicated. To enforcement capability: reduce the possibility of license over usage in markets where weak trust exists, binding the licenses to physical hardware 1. he example of Software Producer A deploying only T elements is recommended. In this method, the license server a served licensing model described in the License (or the client applications) running on virtual machines will Enforcement Using Virtual Machine Detection section bypass the virtual hardware and establish bindings with the above is expanded upon. Using the new capability host system (or the bare metal). In this situation, even if the available in FlexNet Publisher the producer can virtual machine in which the license server is running is later expand upon the virtualization detection implemented copied, the bindings break rendering the license previously to include bare metal binding and server inoperable. mutex detection for additional license enforcement capability, while not having to build different versions While the bare metal binding solves the problem of a of the license server. This allows the producer to license being copied from one physical host to the next, it selectively relax their requirement of a license server doesn’t eliminate the possibility of over usage. only running on a physical machine on a case-by-case basis for increased customer satisfaction. Bare Metal Binding Bare Metal Binding wit h Mutex Lock Prevents • his is implemented by the software producer by T Makes t he Licenses Mult iple Instances of t he using special hostid keywords on the SERVER Hard to Copy License Server on t he line in the license files introduced in FNP. These Same Physical Box hostid types specify: a) the platform type that the license server is authorized to run on, and b) the hostid type. Some examples are shown Guest OS Guest OS L LICENSE below: S SERVER VM Hypervisor • xample 1: To restrict the license server to E Guest OS G Gu t O Guest OS VMware ESX server and to use the Ethernet address of the physical hardware, specify: Guest OS G t Guest OS SERVER this_host VMW_ETHER=1234 LICENSE LICENSE SERVER SERVER • xample 2: To restrict the license server to a E physical machine and to use the IP address of the machine as the hostid type, specify: Figure 4: Solutions with Bare Metal Binding and Mutex Lock SERVER this_host PHY_INTERNET=10.10.12.101 Flexera Software: FlexNet Publisher White Paper Series 7
  • 8. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses License Enforcement Using the UUID Virtualization and Trusted Storage In situations where strong trust exists between software The FlexNet Publisher Trusted Storage solution presents its producers and their customers, it may be desirable to define own unique challenges related to license over usage in a a more flexible binding method that can be included within virtual environment. The affected functionalities are a licensing policy. FlexNet Publisher v11.8 will provide three-fold: the capability to bind the license server to the UUID of the • Anchoring virtual machine container. • Binding • Machine Identification Activation Transactions As previously stated, while it is recognized the UUID can be replicated and applied to additional virtual machines, These topics are discussed in a little more detail below. virtualization management software (that is almost always The Trusted Storage technology uses system anchors to present) ensures the UUID is unique on the network. identify if the trusted storage has been restored from a backup or overwritten. These are really links to one or more system identifiers that cross-check the integrity of the Trusted Storage file with the system. Different anchor types are used on different operating systems, with some anchors being much harder to spoof by a user than others. However, Virtualizat ion a Trusted Storage solution running on a virtual machine Management only has access to the virtual anchor types, which can be reverted back quite easily. This affects the trial anchors implemented by the Trusted Storage solution, with the result VM1 License VM4 License UUID=XYZ Server UUID=AAA Server that the trials can be retaken endlessly. The solution to this UUID= UUID UID UUID= problem would consist of storing the anchor information on XYZ XYZ the physical host of the virtual machine. VM2 License VM5 License UUID=ABC Server UUID=BBB Server The license rights that are held in Trusted Storage are locked UUID= UUID UUID= UUID to a system to prevent them from being transferred illegally XYZ Z XYZ Z to another system. This is referred to as binding and the system characteristics use for the binding are referred to VM3 Lic se License VM6 License as binding identities. The problem with virtual machines UUID=123 Server Serve erver ver e UUID=CCC Server erver UUID= UUID D= UUID= UUID with respect to binding is similar to that of License File XYZ YZ Z XYZ YZ Z based licensing – that the binding identities too easily duplicated when you copy a virtual machine. The solution ESX SERVER ESX SERVER to the problem is also the same – use the physical binding PHYSICAL MACHINE PHYSICAL MACHINE identities instead of the virtual ones. Figure 5: Binding to the UUID of the VM Container The Trusted Storage activation technology relies upon Allowing the enterprise customer to bind to the UUID of the uniquely identifying a machine (using UMN values) when virtual machine container will allow them to support the performing transactions with the activation server (such as license server and the flexibility to take advantage of other the FlexNet Operations). This is required so that in case advanced virtualization management capability (such as a of a repair or return transaction, the activation server high-availability configuration) providing greater flexibility can ensure that the same machine that has activated the and security to their operation. original license is involved in these transactions. With the virtualization technology, it is very easy to setup multiple • This is implemented by the software producer by machines that look to be the same hence resulting in license using special hostid keywords on the SERVER over usage. The solution, once again, would rely upon using line in the license files introduced in FNP v11.8. physical elements for machine identification in combination For example, To restrict the license server to with virtual machine identities. VMware ESX and to use the UUID of the virtual machine instance, specify: Entitlement and Compliance Management License enforcement in virtualization environments is SERVER this_host VMW_UUID=1234… only one component of an end-to-end entitlement and compliance management (ECM) solution. 8 Flexera Software: FlexNet Publisher White Paper Series
  • 9. Virtualizat ion and FlexNet Publisher for Trusted Storage and Cert ificate-Based Licenses In addition to the concerns and approaches presented to software runs on a virtual machine. For example, one new address license over usage, there are other considerations capability available in VMware’s vSphere 4.0 hypervisor related to license life cycle activities that may have a and management toolset is the ability to dynamically bearing on a software producer’s virtualization policies. allocate virtual CPUs (vCPUs). This capability will further For example, a software producer may want to gather play havoc with CPU based licensing. data on how many of their products are being used on physical machines vs. virtual machines. Such data would Research by software industry analysts substantiate the be invaluable to better understand markets and specific industry trend away from hardware based licensing customers so these usage patterns can be evaluated as models toward usage based models such as subscription new licensing models are considered for virtualization and SaaS.2 As has been presented in this paper, the deployments. This information would also help the software fundamental byproduct of virtualization technology serves to producer ensure their support staff is appropriately trained remove the time-honored hardware hooks and metrics that to handle real-world customer deployments. producers have depended upon to secure and monetize their software. Gathering of such data can be easily achieved if the license activation server (such as FlexNet Operations) actively logs FlexNet Publisher will provide the tools necessary for our the platform type on which the license rights are requested. customers to embrace server virtualization that is now so Similar logging of the platform data can be done on the prevalent in the enterprise. license user side via the report log files generated by the FlexNet Publisher license servers. These report log files can About FlexNet Publisher then be analyzed using FlexNet Manager to extract the Part of Flexera Software’s Entitlement and Compliance virtual platform related statistics. Management Solution, FlexNet Publisher enables software producers and high-tech manufacturers to increase revenues Other Possibilities and simplify customer relationships. Advanced product offerings from the virtualization vendors open up many possibilities to ensure the reliability of a The flexible, yet robust licensing capabilities provided license server. For example, the High Availability/Fault by FlexNet Publisher allow producers and high-tech Tolerance features offered by virtualization vendors can manufacturers to address piracy and ensure protection ensure the license server will never need to be shut down. of intellectual property, as well as to react quickly and In fact with appropriate usage, the need for three server efficiently to new and evolving markets through creation of redundancy solutions may also be obviated. new pricing models and versatile product configurations. Best Practices for the Software Producer FlexNet Publisher is the industry leader, with over 20 Flexera Software recommends the software producer start years of experience, a proven track record, more than with a more restrictive approach to their policy of allowing 3,000 thousand customers and over 20,000 FLEX enabled the license server to run in virtual environments and then applications to date. FlexNet was awarded the “Industry best later relax the policy on a case-by-case basis. Starting with software product for software producers” in 2007 by SIIA. FlexNet Publisher v11.7, the license server can be restricted to a physical machine only without needing a change in the About Flexera Software license file. Then, with FlexNet Publisher v11.8, the new Flexera Software is the leading provider of strategic license file syntax can be utilized along with a new license solutions for Application Usage Management; solutions server. The new license file syntax can be released to the delivering continuous compliance, optimized usage and customers at the time of license renewals so as to cause maximized value to application producers and their least disruption to the services. customers. Flexera Software is trusted by more than 80,000 customers that depend on our comprehensive solutions - Caution: If the license server is built and deployed to run from installation and licensing, entitlement and compliance on virtual machines, this exposure cannot be retracted. It is, management to application readiness and software license therefore, suggested to use the approach discussed in optimization - to strategically manage application usage this section. and achieve breakthrough results realized only through the systems-level approach we provide. For more information, Conclusion/Summary please go to: www.flexerasoftware.com As mentioned at the beginning of this paper, most software producers will initially apply traditional licensing models to For more information on FlexNet Publisher and virtual environments. Longer term, most also recognize the FlexNet Suite, please visit: challenges placed upon these traditional models when their www.flexerasoftware.com/fnp 2 As reported in IDC’s Briefing “Going Hybrid with SaaS - Managing Perpetual and Subscription Businesses in the Same Chassis” on June 17th, 2009 with Amy Konary. Flexera Software: FlexNet Publisher White Paper Series 9
  • 10. Flexera Software LLC Schaumburg United Kingdom (Europe, Australia (Asia, For more office locations visit: 1000 East Woodfield Road, (Global Headquarters): Middle East Headquarters): Pacific Headquarters): www.flexerasoftware.com Suite 400 +1 800-809-5659 +44 870-871-1111 +61 3-9895-2000 Schaumburg, IL 60173 USA +44 870-873-6300 Copyright © 2012 Flexera Software LLC. All other brand and product names mentioned herein may be the trademarks and registered trademarks of their respective owners. FNP_WP_Virtualization2_Sept12