Community mailing list archives

Re: New Pricing Structure.

Fabien Pinckaers (fp)
- 01/02/2015 19:10:56
> *Fabien, *Gustavo has made a good question "How far is that from the
> price level the customer expect?"

It's a very aggressive pricing. Our goal is to go for the volumes. We
think Odoo has a chance of becoming mainstream so we set the price to
what will become the market in 5 years, when ERPs will become commodity
for SMEs.

For just $20 per user and $20 per application, you get:
 - access to training materials (150 videos)
 - implementation assistance: a dedicated project manager that does
   the whole process with you: from analysis to deployment
 - unlimited support tickets: functional and technical (bugs reports)
 - full maintenance on both the hosting and the application layer:
   monitoring, incremental backups, etc.
 - upgrades every month to benefit from new features
 - hosting

If you need a full service offer, the new pricing is super competitive
for small companies.

> *​Stephen,* another down point, is the performance of the Odoo stack in
> some world regions, datacenters might be far away and latency high. I
> think for South America that's precisely the case​ as backbones to the
> US are somwhat congested at some business hours.

Yes, that's an issue with our SaaS. We don't have servers in south
america. We only have Asia, Europe and North America. But we plan to
offer a CDN to all our customers, the feature is currently in test.

Note that we offer the same service and price for on premise
installation allowing bigger companies to benefit from the best of the
two worlds: custom services/developments from partners and maintenance
from the vendor (upgrades and unlimited bugfix guarantee).

> As to "So basically I am considering is paying 1000€ worth the hours I
> would need to run and maintain my own small server..." since the advent
> of docker and it's impressive ecosystem, you can almost zero out server
> administration out of your equation, so you would be left with
> application maintainance. I agree, that this is still considerable extra
> burdon.

I guess you miss the important part. Hosting or deployment costs
nothing. (you can get hosted for free and deploy in just a few clicks)
Hosting and deployment is less than 1% of our costs for this offer.

The real cost of such an offer is in:
 - unlimited support service
 - maintenance: human costs when something crash whether it's in the
   application or the hosting layer. This includes monitoring, efficient
   backups, ...
 - upgrades: continuously benefit from new features

Think about it that way. How much days of work do you need to?
 - upgrade the customer (from v7 to v8)
 - fix 3 very complex bug, test and deploy in production
 - offer an unlimited support for one year (available 24/24 [1], 5 days
   a week) The customer can send as many ticket as he wants
 - build training material for every version
 - setup a new instance when something crash (backup recovery, new
   hosting solution, ...)
 - deploy a full-stack architecture: hosting, maintenance, email
   gateway, monitoring of Odoo and network, runbot, ...

For all these services and the implementation assistance service, we
charge $160 per month for a 5 users company using 3 apps. We think it's
super competitive.

Of course, you are free to do everything yourself, that's the beauty of
open source. But if you succeed to do it for less than $160 per month,
you are superman :) (we have serious economies of scale)

That's why we think it's important to have two roles in the Odoo ecosystem:
 - partners to deliver the one-to-one services: custom development,
   business analysis, project management, implementation, ...
 - Odoo SA to deliver the one-to-many services which is mainly the
   maintenance: bug fixes, upgrades, hosting.


[1] our service is not yet 24/24 but we are working on it.

Fabien Pinckaers
Odoo Founder

Phone: +
Twitter: @fpodoo

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