Ask HN: People selling both SaaS and on-prem, what's the price difference?

https://news.ycombinator.com/item?id=38520100

by _false • 3 years ago

8 8 3 years ago

news.ycombinator.com

I'm curious to get a sense of the relative price difference for the same software when sold as SAAS and on-prem. DevOps tools are the most relevant here, but I'd be curious about any pricing comparisons.

ezekg3• 3 years ago

My company has 3 offerings:

- Cloud SaaS: limited free tier, standard tiers $49-799/mo, enterprise tiers $15,990+/yr.

- On-prem CE: free, limited feature set, no support guarantees.

- On-prem EE: $9,990/yr, additional features, dedicated support.

_false• 3 years ago

Interesting to see that on-prem starts lower than enterprise tier. What's the reason for that, as I'd assume any on prem would be more costly to provide?

ezekg3• 3 years ago

It's less expensive because it's actually less costly for me to support on-prem vs cloud, so I want to incentivize on-prem when possible. I also don't want to price out non-enterprises (i.e. those on the standard cloud tiers). So it's a balancing act between standard and enterprise pricing, and so far the current pricing is working well for both.

Why do you think on-prem would be more costly than cloud? Just curious.

nik736• 3 years ago

Apart from the support, onprem is basically free as no infra costs. Why would it be more costly?

rubyissimo• 3 years ago

Tools in my space are usually 5-10x.

Letting people be on-prem kills your upside for NRR. You need to have something compensating.

flappyeagle• 3 years ago

Ask HN: People selling both SaaS and on-prem, what's the price difference?

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