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Re: New Pricing Structure.

by
Ferdinand Gassauer
- 01/06/2015 06:08:39
On 2015-01-06 10:12, Fabien Pinckaers wrote:
<blockquote cite="mid:CANRftauMEMX1tANX8LAh75hJjgkYoCBrLVmYhQNVx0jNWTt+tw@mail.gmail.com" type="cite">


> this offer sounds really great for our company, as I find the product to
> be very, very good, supported by an active community.
>
> Having offered different IT services in the past, we have considered
> offering Odoo to SME customers as well, and thereby becoming a partner
> of Odoo on the longer term. But it is very clear for me that we cannot
> compete on that price levels.
>
> Where do you see the "fertile ground" for your (future) partners to
> build upon? Remember, these are the people "in the field"...

Hello,

There are two types of customers / market:
1) small companies looking for a cheap, out-of-the-box, solution

a) as long localised accounting is not supported, many countries can't use odoo SAAS offer. 
b) as accounting requirements are often changing rapidly and not following the odoo release cycle - the offered SAAS solution must somehow allow quick adaptation to legal requirements.
just my 2 ¢
<blockquote cite="mid:CANRftauMEMX1tANX8LAh75hJjgkYoCBrLVmYhQNVx0jNWTt+tw@mail.gmail.com" type="cite">

 2) mid-size and enterprises that needs customization and services

In my opinion, the first market used to be a service market but his becoming a commodity one. It's not only for Odoo, the world is moving into that direction. So, these customers are better served by SaaS vendors or products that do not require additional services, rather than implementation services companies. (Small companies prefer to stick to a standard application rather than buying consulting or development days)

The real service market for partners is the second one. Companies with more than 20 users need services: analysis, project management , on site trainings, custom developments... They need to adapt the product to their needs and they need local services.

Of course, the market is huge and Odoo is still very small. Partners can still sell to small companies. But if you want to grow a service offer for the long term, it's better to focus on larger companies. This is where the margins are for partners.

>
> Brgds
> J
>

>
>
>
> Am 03.01.2015 um 01:12 schrieb Fabien Pinckaers:
> > > *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.
> >
> >
> > Thanks,
> >
> >
> > [1] our service is not yet 24/24 but we are working on it.
> >
> > --
> > Fabien Pinckaers
> > Odoo Founder
> >
> > Phone: +32.81.81.37.00
> > Web: https://www.odoo.com
> > Twitter: @fpodoo
> >
> > Instant Demo: https://odoo.com/start
> >
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> >
>
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