Value-Based IPS Licensing Model for Dynamic Billing
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Solution Overview
Problem
Current licensing and billing models for computer intrusion prevention/detection systems (IPS) do not accurately reflect the real value provided to end customers, leading to cost inefficiencies and a lack of incentive for effective IPS solutions and maintenance.
Innovation Solution
A value-based licensing and billing method that determines fees based on the effective vulnerability protection measure, considering host attributes, vulnerability attributes, and asset value attributes, ensuring customers pay only for the value delivered by the security software.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If traditional perpetual licensing or rental models are used for IPS software, then software vendors can generate steady revenue, but customers pay costs that do not reflect the real value provided by the security software
Solution Approach 1:
The patent transforms the billing model from fixed perpetual licensing to dynamic usage-based pricing. The licensing fee is changed from a static parameter to a dynamic one that varies based on measured effectiveness parameters including vulnerability protection measure, host attributes, vulnerability attributes, and asset value attributes. This allows the billing to accurately reflect the real value provided by the security software.
Solution Approach 2:
The patent implements a feedback mechanism where the licensing fee is determined based on measured performance data. The system continuously monitors effectiveness parameters and uses this feedback to adjust billing amounts, ensuring customers pay based on actual value delivered rather than predetermined fixed rates.
2Reliability
If IPS software is deployed to provide effective protection, then security value to customers increases, but cost to customers becomes prohibitive under traditional licensing models
Solution Approach 1:
The patent changes the cost structure from fixed high upfront licensing fees to variable usage-based fees. Customers pay based on actual effectiveness measured through monitored parameters, making the cost proportional to the security value received. This resolves the contradiction by allowing effective protection while making costs affordable and proportional to benefits.
Solution Approach 2:
The patent introduces dynamic pricing that adjusts based on real-time or periodic measurement of security effectiveness. The licensing fee transitions from a static contractual obligation to a dynamic amount that fluctuates with actual performance, allowing customers to pay more when protection is highly effective and less when it is less critical or already provided through other means.
3Power
If traditional licensing models are used, then software vendors receive upfront revenue, but there is no incentive to ensure the IPS remains well-tuned after delivery
Solution Approach 1:
The patent creates a feedback loop where vendor revenue continues to depend on measured effectiveness even after initial deployment. Since the licensing fee is based on ongoing performance metrics, vendors have continuous incentive to maintain and tune the IPS system to ensure it remains effective, directly linking revenue to maintenance quality.
Solution Approach 2:
The patent transforms the revenue model from a static upfront payment to a dynamic ongoing arrangement where vendor compensation continues to vary based on system performance. This dynamic structure maintains vendor motivation for continuous improvement and maintenance throughout the software lifecycle.
4Adaptability or versatility
If IPS software is made more affordable through usage-based pricing, then accessibility to more customers improves, but complexity in measuring and determining licensing fees increases
Solution Approach 1:
The patent segments the billing determination into distinct measurable components: vulnerability protection measure, host attributes, vulnerability attributes, and asset value attributes. By breaking down the complex valuation into separate measurable parameters, the system makes accessibility possible through usage-based pricing while managing complexity through structured measurement categories.
Solution Approach 2:
The patent implements automated monitoring and measurement systems that self-determine the licensing fee based on collected performance data. This self-service approach to billing calculation reduces the need for complex manual intervention while maintaining accuracy, making the system both accessible and manageable.
Data Source
AI summary
Value based licensing/billing methods and system for security software is provided, which use an effective vulnerability protection measure provided by a new or updated IPS filter deployed on host computer to determine the licensing/billing fee of the new or updated IPS filter over a billing period. The effective vulnerability protection measure is determined based on vulnerability and host attributes, and, in the embodiment of the invention, is based on a vulnerability time gap or time protected of the host computer.