July 14, 2011
PacketTrap MSP, part of Quest Software, has introduced a new licensing model for managed services providers. In addition to PacketTrap MSP’s existing “per node” model, PacketTrap now offers a “per customer — site license” option, according to PacketTrap’s Mike Byrne. Here’s what motivated the move.
“We all know the issues associated with ‘shelfware’ and MSPs not managing all of the devices on their customers entire networks,” Byrne wrote in an email to MSPmentor. “So we completely overhauled our back-end system and pricing structure to allow our partners to on-board their customers regardless of the number of devices at a fixed cost.”
In the email exchange, Byrne noted the growing managed services shift to a per-customer sales model, though the old per-node model remains available for MSPs who prefer that approach. However, we’ve seen a huge increase in our existing partners (who have switched from the old to the new licensing model) and our new partners in putting customers on their dashboards.”
PacketTrap uses a formula of 100 devices per site license to calculate the total number of devices partners can amortize. For example, Byrne said: Assume a partner purchased a 10-site license pack. PacketTrap doesn’t care if the MSP has one customer running 25 servers & 300 desktops, and another with one server and seven desktops. Instead, the MSP has a pool of 1,000 devices they can spread out over the 10 site-licenses.
“Also, we don’t care if one of their customers have 15 locations; we count that as one site,” said Byrne. “Our software was originally designed to track the client anyway so as far as license compliance goes, we’re golden!
“The ROI story is amazing,” Byrne claims. “The way we’ve priced this out puts the average cost per client site well under $30 a month. So … if you use the old Gary Pica or Stu Selbst model — just sell it at $150 per user’ model — it’s golden!”
I concede: It has been awhile since I took a really, really close look at licensing models for RMM (remote monitoring and management) software. But the models certainly are evolving.
One key trigger point: LabTech Software introduced aggressive pricing to potentially recruit MSPs away from the Kaseya platform, according to MSPs that have been evaluating both platforms. In some cases, Kaseya has dropped its own prices while adding a requirement for MSPs to stay onboard for the long haul. Under Kaseya’s original model, MSPs could opt out at any time, MSPs involved in the pricing debate say.
Regardless of where you sit, it’s clear that competition in the MSP software market continues to benefit MSPs.
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