OpenERP Enterprise New Pricing 2013

Fabien Pinckaers - Founder November 2013

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Our motivation for a new pricing; only one contract for SaaS & On Premise, better fits small customers needs, higher margins for partners, provide a solution for the sustainability of community modules, better reflect the value of our service.

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New Public Price

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The New Public Price

35
Europe North AM

/ user / month

By Region
Africa,South AM, Asia India+Bengladesh

35

$39

$33

1170 INR

Simple: only one price Only One Contract: for SaaS & on-premise No Constraints: no minimum user, no minimum number of months Valuable: our services are accessible for the end-user, directly in the application
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Included Services
Services are delivered through the application. You pay to use the Apps plateform. Convenience to install any module in one click Automated updates (minor releases) Unlimited bugfix guarantee Functionnal Support included: 2 hours Migration services to benefit from new features Migration includes any community module (at an extra price) in option Optionnal hosting (+backups+dns...) if you want to use online on the SaaS plateform
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Public Price: Constraints

The constraints: An OpenERP Enterprise contract cover only one database. Migration service allowed only if you subscribed 6 months ago to the OpenERP Enterprise (otherwise, you get an extra fee) We charge the real number of users (ping system) To benefit from the monthly billing, you need to pay with a credit card.

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What's a Paying User?

A paying user is: A normal user, having write access to the database. Portal users (customers/suppliers) are not paying users.

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Partner Price

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Partner Prices
If you satisfy two conditions:
Buy and prepay one year Buy by multiple of 10 users only

You get:
50% discount: ready partners 55% discount: silver partners 60% discount: gold partners

Any extra user, above the purchased contract, will be charged full price (35) without discount. The only possibility to upgrade your contract is at renewal date. Sell the right expected number of users during the year.
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Old VS New Price: ready partners

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 10 15 20 25 30 35 40 45 50 55 55 65 70

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Freedom to negociate the price

Partners get a higher margin Freedom to negociate the final price

35000 30000 25000 20000 15000 10000 5000 0 10 15 20 25 30 35 40 45 50 55 55 65 70

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New vs Previous Margin: ready

The margin, based on the public price.

16000 14000 12000 10000 8000 6000 4000 2000 0 10 15 20 25 30 35 40 45 50 55 60 65 70

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Pricing: Europe Middle East

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Pricing: North America+AU+JP

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Pricing: South America+Africa+Asia

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Pricing: India + Bengladesh

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Transition

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Transition: Prices
New Pricing: Effective the 1st of January 2013. Apply to new contracts or contracts with an upgrade All quotations made in Q4 2012 are valid 3 months after the quotation date. Old Contracts: Keep their existing price, with an extra of 4% (as described in the contract)
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Transition: Services

New Services are available in v7 only: One click installation convenience Automated updates (and fast merge of all patches in stable branches) Lower upgrade prices for community modules

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Migrations / Upgrades

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Upgrading Community Modules

Old Contracts

New Contracts (v7+)

800 per 1000 SLOC

A price will be set by module at v7.1 800 per 1000 SLOC / number of customers

Impact:

Impact:

Difficulty to sustain evolution & migration of community mod May be expensive Cust. Blocking point to evolve At each new version (e.g. V7), some modules are lost
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Upgrade a localisation at around 80 (code evolution+data) Smooth, no blocking point for a customer to evolve Sustainable community addons in the long term

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Use Cases (Europe)

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Scenario 1: small company

IF:
Ready partner OpenERP Enterprise Customer, 10 users

THEN:
Public Price is: 35 * 10 * 12 = 4200 You buy at: 2100 (50% discount) You:
Quote between: 2100 & 4200 The extra above 2100 is your margin/commission

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Scenario 2: small growing company

IF:
Ready partner Customer announced: 10 users But reach 15 users after 8 months

THEN:
You buy 10 users at: 2100 (50% discount)
=17.5 per user per month

We contact you when above 10 users:

Customer pays an extra: 10 users for 4 months at 35: 1400 Or we stop our services
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Scenario 3: very small company

IF:
Ready partner Very Small Customer: 1 user

THEN:
Buying 10 users (2100) is too expensive You ask your customer to buy with a credit card:
we charge: 35/month

You don't get commission but you benefit from our services to help your customer evolve and benefit from the new features and bugfixes
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Scenario 1: small company

IF:
You sold 40k of OpenERP services per year You are upgraded from ready to gold partner

THEN:
Your price for 10 users goes:
From: 2100 (50% discount for ready) To: 1680 (60% discount for gold)

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Scenario 4: big comany

IF:
Ready partner Company with more than 100 users

THEN:
Contact us to negociate a price

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Side Effects

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Apps.OpenERP.Com Apps.openerp.com becomes our core business/plateform to deliver all services.

we will invest to improve the plateform, especially the visibility of community modules we will promote community modules (certifications) to sell more. People will want to pay for the convenience of using this plateform rather than a hard launchpad install) we guarantee the migration of any module so that there is no blocking point for customers. The price will decrease with the number of users.
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Chrome Browser Like Installs Like the Google Chrome browser, the packaged OpenERP installer will not include any module by default. (just base) Modules installed from the UI are downloaded and installed on the fly. This allows:

To install any module in one click To get stats about installed modules and users to estimate the price to migrate non official modules

You can still use the old/usual way. For modules that are installed manually, it will not use the apps plateform.
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Valuable Service Our current OpenERP Enterprise service was a service for partners only, thus the value was difficultly perceived by customers In v7, our service will be directly accessible to customers and partners. The perceived value increase easier to sell. Our quality of service will improve as it will be directly accessible to customers (patches will be merged quickly in stable branches so that customers just have to click update.)
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Q&A

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Thanks!

Please ask your questions in the chat dialog...

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