Interview with Oliver Winzenried, Co-founder and CEO of WIBU-SYSTEMS AG, an innovative security technology leader in the global software licensing market.  

 
IndustryArena: Mr. Winzenried, Your company is celebrating its 35th anniversary this year. What were the milestones in the company's history, and what contributes to WIBU's great success?

Oliver Winzenried:  Over the past 35 years, Wibu-Systems has evolved from a pioneering force in software protection to a global leader in software monetization. The journey began with WibuKey in 1989, a foundational product that secured software from piracy. However, the real game-changer came in 2003 with the introduction of CodeMeter, a comprehensive solution that revolutionized how companies manage software licenses and protect intellectual property (IP). CodeMeter's modular architecture, encompassing software, hardware, cloud, and services, has allowed customers to adapt to an increasingly complex digital environment.

Wibu-Systems' success is also tied to its ability to adapt and expand into new markets. From its origins in Germany, the company has established a strong international presence with offices in the US, China, Japan, and recently, South Korea. As Industry 4.0 has gained momentum, Wibu-Systems has been at the forefront, offering solutions that protect IP and enable sophisticated licensing strategies tailored to the industrial sector's unique needs. The company's sustained growth is a testament to its innovation, customer-centric approach, and commitment to excellence. 

You offer your customers highly sophisticated software solutions. Can you briefly explain to someone who is not familiar with the subject what Wibu-Systems is all about and which target group you cater to?

Wibu-Systems is dedicated to protecting digital assets, securing software from piracy and tampering, and enabling companies to monetize their innovations effectively. At its core, our technology ensures that companies can safeguard their intellectual property from unauthorized use while offering flexible licensing models to maximize revenue. This is increasingly vital in a world where software is becoming the backbone of industries, from traditional software publishers to advanced manufacturing in the Industry 4.0 era.

Our target audience includes independent software vendors, ISVs, and intelligent device manufacturers, IDMs, that rely on software to drive its business. As the digital landscape evolves with AI and quantum computing on the horizon, the need for robust protection and innovative licensing strategies has never been greater. CodeMeter, our flagship solution, is designed to meet these demands and keep businesses ahead of the curve.

Your company is dedicated to the fight against cybercrime. Isn’t this sometimes like "fighting against windmills" as the nature of the threats is constantly changing?

While cybercrime is an ever-evolving threat, it is far from a hopeless battle. Wibu-Systems, alongside industry partners, governments, and regulatory bodies, is making significant strides in combating cyber threats. Awareness of cybersecurity has grown tremendously, with initiatives at both national and international levels driving this change. For instance, the European Union's regulatory frameworks, such as the Cyber Resilience Act, are setting new standards for cybersecurity, and Wibu-Systems is at the forefront, providing tools that are ready to meet these requirements.

Moreover, the latest VDMA report on industrial security and product piracy shows a positive trend—declining numbers for the first time. This is a sign that the combined efforts of technology providers like Wibu-Systems, regulatory authorities, and the broader industry are making a tangible difference. We believe that by continuing to innovate and collaborate, we can turn the tide against cybercrime.

Are the threats posed by software and product piracy sometimes taken too lightly, and do you, therefore, need to educate your customers?

Indeed, while awareness of software piracy and IP theft has improved, there is still a tendency to underestimate the risks. Many companies mistakenly believe that homegrown solutions are sufficient to protect their valuable assets. However, as the complexity of cyber threats increases, so does the need for specialized expertise.

At Wibu-Systems, we see ourselves not only as a technology provider but also as educators. We engage closely with our customers to understand their challenges and provide tailored solutions. Our latest innovation, CodeMeter License Portal, is designed to simplify the adoption of our technology, allowing customers to test and implement our solutions with ease. This portal also serves as a tool for educating customers on the importance of robust protection and sophisticated licensing strategies.

How does your flagship product, CodeMeter, protect the integrity of digital assets and intellectual property against cyberattacks and piracy?

CodeMeter is a multi-layered defense system for software and digital assets. At the heart of this system is AxProtector, a module that encrypts compiled code with advanced encryption algorithms. There is a specific AxProtector for each specific target system, including Windows, Linux, mac OS, .NET, Java, Python, and JavaScript. Over time, AxProtector has evolved to offer more than just basic protection though—it now provides customizable options for modular licensing, IP protection only, and file encryption.

One of the latest innovations within AxProtector is Compile Time Protection (CTP). This advanced feature obfuscates code during the compilation process, making it significantly harder for attackers to reverse-engineer or tamper with the software. By encrypting function names, obfuscating code blocks, and altering logical connections, CTP adds a powerful layer of security that protects software from even the most sophisticated attacks. This versatility and depth of protection are what make CodeMeter a trusted choice for companies across various industries.

Can you provide an example of how established sales processes can be optimized through the use of CodeMeter?

CodeMeter transforms traditional sales models by offering flexible licensing options that can be tailored to meet the needs of different markets and customer segments. In the past, software was typically sold as a perpetual license with limited flexibility. Today, CodeMeter enables businesses to offer a wide range of licensing models—subscription-based, pay-per-use, feature-based, and more—allowing them to maximize revenue and cater to diverse customer needs.

For example, some companies are now implementing Unit Values, a dynamic licensing approach that allows customers to move between different software packages based on their current needs. This flexibility not only enhances customer satisfaction but also opens up new revenue streams by enabling customers to pay for exactly what they use. By adopting CodeMeter, companies can optimize their sales processes, increase customer loyalty, and stay competitive in a rapidly changing market.

How does the Wibu Academy, founded in 2023, add value for your customers, and how has this project been received so far?

The Wibu Academy was established to elevate cybersecurity knowledge within Wibu-Systems and beyond. By staying ahead of cybersecurity trends and best practices, our team can provide more informed and effective support to our clients. The Academy's impact is already being felt, with employees gaining deeper insights into cybersecurity and applying this knowledge in their interactions with customers. As we expand the Academy's offerings, we plan to introduce CodeMeter-specific courses that will benefit not only our staff but also our global network of partners and customers. This initiative positions Wibu-Systems as a thought leader in the industry, committed to continuous learning and sharing that knowledge with the broader community.

Finally, can you explain in one sentence what makes Wibu-Systems so special and why your company enjoys such a high level of trust from its customers?

Wibu-Systems stands out because of its unwavering commitment to delivering cutting-edge software protection and licensing solutions, while fostering a culture of transparency, integrity, and fairness that resonates with customers worldwide.

Mr. Winzenried, thank you very much for the interesting interview.

For more information about Wibu-Systems click here.