Sentinel Contributes to Optimizing License Operations at Cadmac

Transitioning from a perpetual license-centric sales model to a recurring revenue business model to expand revenue generation opportunities.

Provides flexible licensing and IP protection compatible with both cloud and on-premises environments.

Standardizes license operations, significantly reducing the workload compared to traditional management.

Thales is pleased to announce that Cadmac Co., Ltd. (hereinafter referred to as Cadmac), a developer and provider of CAD/CAM solutions for the sheet metal industry, has achieved business problem resolution and strengthened its foundation for business expansion through the implementation of Thales's software monetization solution, Sentinel. With Sentinel, Cadmac has revamped its traditionally manual license operations, establishing a highly scalable licensing and revenue model that includes subscriptions and add-ons. This enables more flexible and rapid software delivery.

About Cadmac

Since its establishment in 1993, Cadmac has provided CAD/CAM solutions for the sheet metal and industrial automation industries. Its main software products include MACsheet BBX, TouchPocket, and DataPocket, supporting small and medium-sized manufacturers in efficiently performing sheet metal cutting and bending operations based on 2D and 3D design data. The company currently serves 3,000 customers through direct sales and approximately 50 partners, holding a solid position in the highly specialized manufacturing sector.

Background of Implementation: Facing the Limitations of Traditional License Models

Cadmac's software is deployed in both cloud and on-premises environments. However, the traditional mechanism centered on perpetual, one-time purchase licenses was struggling to keep pace with the operational and commercial scalability required for business expansion. Furthermore, external development partners manually generated and managed licenses, which sometimes necessitated on-site visits for license activation, leading to delays of several days to several weeks in product delivery. Additionally, visualizing license usage, addressing the demand for immediate access from users, and strengthening measures against reverse engineering and misuse were also significant challenges.

Rebuilding License Management with Sentinel, Protecting and Expanding Revenue, and Improving Customer Experience

To address these challenges, Cadmac adopted Sentinel, a cloud-hosted license platform provided by Thales, and implemented Sentinel's Entitlement Management System as a Service (EMSaaS). Sentinel EMSaaS offers a comprehensive solution that includes Sentinel Licensing Development Kit (LDK) and Sentinel Envelope, which protects software from reverse engineering, tampering, piracy, and unauthorized licensing, characterized by its flexibility and security.

With the implementation of Sentinel, Cadmac has standardized license operations across its entire product portfolio, enabling the provision of multiple license models, including subscriptions, feature-based add-ons, and hybrid activations supporting both online and offline environments. The company currently manages over 800 license activations, each supporting a base product and multiple add-ons. This allows Cadmac to propose flexible product introductions tailored to each customer's needs, while also creating new revenue opportunities through upselling, cross-selling, and renewals.

Furthermore, customers can now activate licenses more quickly, resolving delivery delays and improving productivity. Self-service through a portal allows users to manage their licenses online independently. Flexibility is also ensured for manufacturing sites that require offline environments. In the future, Cadmac plans to automate internal processes and utilize cloud-based licensing.

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Mitsuaki Watanabe, Department Manager of the Development Department at Cadmac Co., Ltd., stated:

"We no longer need to manually install licenses individually as before; now, we can distribute licenses directly, and users can manage them autonomously online. By offering a choice between online and offline, we also meet the need for flexibility. Sentinel is the foundation that not only supports our current business growth but also elevates our software business and supports future business expansion."

Damien Bullot, Vice President of Thales's Software Monetization division, stated:

"For companies like Cadmac that provide specialized software for the manufacturing industry, protecting intellectual property and flexibly responding to diverse customer environments are central to business growth. This implementation is a symbolic initiative where a Japanese software vendor for the manufacturing industry has succeeded in improving both its revenue model and customer experience, and we are delighted that Thales's Sentinel has contributed to its realization."

Cadmac aims for further revenue expansion by leveraging license data to provide products that align with customer usage patterns. Through Sentinel, Thales will continue to support Cadmac's ongoing growth and the growth of the software business in Japan's manufacturing industry.

For more information

Details about this matter can be found at the following URL:

https://cpl.thalesgroup.com/ja/resources/software-monetization/cadmac-software-licensing-sentinel-case-study