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Product Management Technical Design Question: Creating a digital license system for hardware devices

Asked at Cisco

15 mins

How will you create a digital license replacing the traditional license activation code associated with hardware devices?

Product Technical Hard Member-only
System Architecture Security Design User Experience Software Hardware Enterprise Technology
User Experience Digital Transformation Security Technical Design Licensing Systems

Designing a Digital License System for Hardware Devices: Replacing Traditional Activation Codes

Introduction

The challenge at hand is to modernize our licensing system by moving away from traditional activation codes for hardware devices to a more robust, flexible, and user-friendly digital licensing solution. This transition is crucial for improving security, reducing piracy, enhancing user experience, and gaining better insights into product usage and customer behavior.

To address this challenge, I'll outline a comprehensive approach that covers technical requirements, current state analysis, proposed solutions, implementation strategy, monitoring, risk management, and long-term technical vision.

Tip

Ensure the digital licensing solution aligns with both technical capabilities and business objectives, such as reducing support costs and increasing customer satisfaction.

Step 1

Clarify the Technical Requirements (3-4 minutes)

To ensure we're on the same page regarding the technical landscape and requirements, I'd like to clarify a few key points:

  • Current Licensing Infrastructure: "I'm assuming we're dealing with a legacy system that relies on offline activation codes. Can you confirm if we have any existing online components or if this is a completely offline system?"

Why it matters: Determines the extent of the infrastructure changes needed. Expected answer: Mostly offline system with limited online capabilities. Impact on approach: Would need to design a new online infrastructure from the ground up.

  • Device Connectivity: "Are all the hardware devices we're licensing internet-connected, or do we need to account for offline scenarios?"

Why it matters: Affects the design of the licensing mechanism and validation process. Expected answer: Mix of online and offline devices. Impact on approach: Need to design a hybrid system that can handle both scenarios.

  • Security Requirements: "What level of security are we aiming for? Are there any specific industry standards or regulations we need to comply with?"

Why it matters: Influences the encryption methods and security protocols we'll implement. Expected answer: High security required, possibly FIPS compliance for government contracts. Impact on approach: Would need to implement strong encryption and secure communication protocols.

  • Scale and Performance: "Can you give me an idea of the scale we're dealing with in terms of number of devices and license validations per day?"

Why it matters: Determines the infrastructure requirements and scalability needs. Expected answer: Millions of devices with daily license checks. Impact on approach: Would require a highly scalable, distributed system architecture.

Based on these clarifications, I'll make the following assumptions for the rest of my response:

  1. We're building a new online licensing system from scratch.
  2. We need to support both online and offline devices.
  3. High security is a priority, potentially requiring compliance with standards like FIPS.
  4. The system needs to handle millions of devices and daily license checks.

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