Product Management requested that the comments from Change to Tiered Pricing and Simplified Offerings be removed. This article is the placeholder to hold these comments.
Hello,
Quick question/confirmation on the pricing for "JMP on Server OS" listed in the critical changes document, which is covered under Example 3.
It appears that we are charging the license fee twice for those who wish to have the server OS access and that it cannot be purchased by itself. If a customer is only wanting the "JMP on Server OS" for all users, they then pay for every user under the appropriate CLM fees and then again for "JMP on Server OS".
Let me know if I am misunderstanding.
Thank you!
Tim
Hey Tim -- Thanks for the careful review of the critical changes doc!
Yes. "JMP for the Cloud" is now an add-on to the standard pricing tiers (as opposed to a brand new site starting again on the pricing curve). Within a contract, those users that wish to install JMP (Or JMP Pro or JMP Clinical) on a Windows Server OS pay an additional fee for those users that want that expanded right. They pay the SE fees at the Tier price for the number of users that desire the access irrespective of any additional rights (like ME).
An additional thought: This is included in the ELAs as part of the bundle, so for larger installs of JMP, we desire to drive more customers to the ELA. The ELA includes JMP Pro, JMP Live On-Prem and all three operating systems as part of the bundle by default.
Two questions on slide 18 of the presentation:
1. A long term customer that got transferred to an UTOF late last year / early this year is still considered as a customer that is in a renewal year, or? 2. Mid-year upgrades when a Customer is in a renewal year:It says: "Divide annual fee paid at the last contract date by the number of current users to determine the price per unit"
My understanding is that, even if this customers has had several user upgrades since, I just take the last renewal invoice and divide it by the current number of licenses under that site. Right? Thanks for your help.
The pricing stops at 1000 users. Is it safe to assume that is 1000+ users? While we are positioning ELAs where they make sense we are not forcing 1000+ user accounts into an ELA are we? Thanks - Dara
Hi Dara -- Yes, good question. It is 1000 users +.
Is the user able to use both desktop and cloud enviroment if "JMP for the Cloud" is added to the contract?
Is there a price list available with Euro, Swiss Franc, UK Pound?
Hi, second question.
The last 3 digit of Japanese license price is rounded down.
Are we able to apply same rule after calculating the upgrad fee for both first year and renewal year user?
Q: Why is this price increase happening?
A: Buying JMP in the past has been hard. Upgrading and growing JMP use in your organization may have been challenging to budget for, and fees were not easy to understand. We are changing that by adopting a flat, tiered pricing structure. This will make JMP easy to buy, easy to budget for, and yearly fees remain consistent. However, this may result in a one-time increase to your next invoice. (refer to talking points).
Correct me if I'm wrong, but there will be a 15% increase year on year after this new pricing is introduced, right?
Hi @kiyomi_kato -san
1. Yes, if a customer licenses JMP On Server OS "JMP for the Cloud" those users can install on macOS, windows desktop and windows server operating systems.
2. We will use the same currency table and rounding rules for converting to local currencies (Business as usual) from 1/1/2022. We will re-assess for 1/1/2023.
@Melisa_Muhd
The plan is to continue to push 15% increases for renewal customers until they move to standard fees. We also have different endpoints for the larger customers, too, namely the ELA, which is a better fit for this larger customers and gives them access to our premium products: JMP Pro and JMP Live.
Regarding the talking around the one-time increase, that is for those invoices < 10k USD that are migrating to the new fees directly. That is where the one-time increase will happen. The 15% is really more about moving them, over time, to standard fees.
1. If a customer has a multi-entity JMP site, and a single entity JMP for the Cloud site, is only the multi-entity site impacted by the 1.5 multiplier?
2. If a customer has a JMP for the Cloud site, and a JMP site, but do not renew at the same date, will they need to be co-termed with it now being an "add on"?
Having reviewed our territory's August renewals, it appears that many (but not all) are invoiced using the old fee schedule. Those that have not invoiced, did receive the future notification using the old fee schedule. Is there a planned timetable for when we should expect that to stop, since I believe that we are honoring the future notifications and invoices that have been sent out?
Would you mind my confirming if the prices of JMP Academic Suite including Campus-wide, Department, and Professor are integrated into one price at 200,000 JPY for one year?
That seems a big price reduction for those who consider Campus-wide, since it is currently 600,000 JPY.
Also I would appreciate it if you could clarify the user of Academic Single Researcher JMP Pro. Is it single license for teacher, researcher, and students and who...? Can anyone registered at school use it?
My third question is about Academic System-wide. Is it so called PV license? I would like to know the details of this.
Thank you for your help!
Hiroko
Hi @Daniel_Valente ,
15% increase for renewing customer -> noted.one-time increase, that is for those invoices < 10k USD that are migrating to the new fees directly -> noted
The plan is to continue to push 15% increases for renewal customers until they move to standard fees. -> how about our annual increase? Do we no longer have annual increase? Is the price that will be released in 1Aug valid until 2023 only or this will be our standard price until further revised, let's say 2025?
@alexbeck great questions.
1. In the context of pricing, a customer would be considered New only if their first contract was at the new standard pricing. In your scenario, the customer would be considered renewal.
2. Mid-year upgrades should consider the latest annual renewal along with any subsequent upgrades prior to the new pricing going into effect 8/1.
Hi @dara_hammond,
1. Only the multi-entity JMP site would be impacted by the 1.5 multiplier.
2. JMP for the Cloud being an add-on does not require the customer to co-term. It simply means they cannot purchase the add-on unless they have purchased on-prem licenses first, or in conjunction with.
This was mentioned in the training, but no changes will be made to the JMP Exchange Rates for calculating new fees for new customers with the 8/1/2022 change. We will revisit exchange rates for 1/1/2023. As a reminder, exchange rates are available on the SAS Pricing and Policy Page for defined currencies.
Hello again and thanks for taking the time to review questions/feedback!
In review of the critical changes document and the pricing tiers, I have a question/observation about calculations when moving from one step in the pricing tier to the next.
In Example 3, the license fee for all 11 JMP Clinical licenses is calculated using the Price List C, 11-20 tier (tier 2) rate, which is 11 x $5,600 = $61,600 (before factoring in the rest of the formula for JMP on Server OS). Using that logic, the license fee for 10 users of JMP Clinical using the Price List C, 1-10 tier (tier 1) rate, is 10 x $7600 = $76,000. Thus, the customer pays $14,400 more for a 10 user license vs. an 11 user license.
There are other examples that I ran scenarios on, such as 10 JMP = 12,000 and 11 JMP = 12,100, 40 JMP = $42,000 and 41 JMP = 41,820 and others.
I am guessing that the Example 3 is intending to calculate the first 10 users using the Tier 1 fees and then adding 1 user from the Tier 2 fees, but it does not appear to do so.
Thanks for reviewing and look forward to more discussion around the new pricing!
Tim. Yes. When you discretize a continuous curve you get nonlinearities around the cut points, especially if you aren't walking up the pricing tiers cumulatively (which we aren't). A couple things:
1) Customers upgrade in the tier for the duration of their contract and then at renewal time if they move to a new tier they are repriced at that tier, resulting in a price per user drop and a total invoice drop.
2) That also means that early in the next tier the total price can be lower for more users. This is great for account expansion! And a good selling point. You can get JMP in the hands of more people, at a lower price point by adding more users. Then as they upgrade, they increase their total spend again.
3) In the example shown, the PPU for the users that need JMP on Server OS is priced at the SE price list for the users that need that access, so in that example, the 4 users are in the 1-10 user tier, i.e. $7,600 for each of the 4 users. If all 11 wanted JMP on Server OS, they'd be priced at the 11-20 tier -- $5,600 for that or $123,200 total.
The PPU is always at the tier that you are in for the initial fee and also for upgrades through the year, only at renewal can you move tiers based on the number of upgrades (or downgrades) that happen at anniversary or upgrades during the year.
Thanks @LaurenAldrich for answering my questions. Really appreciate it.
Can we try to clarify the upgrade question with an example. You´ve said:"2. Mid-year upgrades should consider the latest annual renewal along with any subsequent upgrades prior to the new pricing going into effect 8/1. " What does this mean for example for the following customer:
- Paid at renewal (12/01/2021) 39,200 € for 67 users
- processed since renewal 13 upgrades bringing him up to 84 users now
What would this customers PPU be?
Hi, I’d like to confirm the below two questions.
1, Example; Renewal date: 1/15/2023 # of License: 21Upcoming Renewal letter: $12,155 (15% increase from 2022 invoice because last invoice is greater than $10,000)If this customer wants to add one license at renewal timing, how much does it cost?
2, About 2023 price in local, It says “we will revisit exchange rates for 1/1/2023.”, when will the official local price be fixed? We need to tell our customers to 2023 price for budgeting purposes as soon as possible.
Thank you very much for your confirmation.
This is in the article but we now have a form for submitting a request for deal support: this form.
If you have a general question about pricing, and for items outside the scope of the deal support team, please leave a comment on here, we will be using those comments to build a FAQ over time.
The deal support team supports T&C questions as well as how to price a deal (especially ME and ELA deals). And:
- New licenses where a discount of more than 20% is proposed.- Upgrades where any level of discount is proposed.- Non-standard business terms proposed to a license agreement. (Negotiation of terms that are submitted to the Deal Support Team must meet the negotiation threshold of $100,000 USD).
Questions out of scope or general in nature will be referred back to this page. You'll need a completed deal sheet and the deal summary (completed from operations) when submitting a support request.
Hi,
According to a staff from SAS Korea LOP Team, the Future Letters (Renewals Notice) with the REN amount for the LBD of the 1th to the 14th of October were automatically sent on the 4th of June. Sending the Future Letters for the remainder of renewals have been holding because of the change of SAS products but it will be sent soon.
Can the JMP legacy (old) price be applied for the items that we have sent the Future Letters already?
Hello.
Are Deal Support team or Legal team able to prepare the official letter to explain price change?
Renewal price is increased more than the past, and it would help us to explain to the customer.
There is a transaction in progress, and the details are as follows.
Due Diligence for SI contract has been completed and there is a deal in progress.
(Upfront of the contract period of 2 years and the 2 year License fee)
[Background]
The deal below is what Hokeun and I have been discussing with our clients since the beginning of this year. The Korean Standards Association (KSA) is implementing a project called 'AI Data Processing Voucher' to customers through the government budget.
The end customers (Foresco & STS Engineering) requests the government agency for budget approval from a government agency for the "AI Data Processing Voucher" project and, if approved, receives the budget to carry out the company's digital transformation.
They recently secured a budget from a government agency, and a customer requested data consulting, training and JMP licenses from KSA. The project will last around two years,
and the customer wants a two-year license agreement as the customer must report to the government on the use of the government budget. This is all done at standard fee (not New Pricing), and LBD is the end of July.
[Summury]
- End User : 1) Foresco, 2) STS Engineering
- The 3rd Party: KSA (suggested by End User) / Due Diligence Approved
- Product: JMP Basic 2 per company (4 Total)
- The term of a contract : 2 years
- LBD: July 31 2022
- Date of Quote : 1st - May 30 , 2nd - June 30 (same amount)
- license fee : 1) Foresco - FYF 3,490,000 (KRW) / RYF 1,780,000 (KRW) 2) STS Engineering - FYF 3,490,000 (KRW) / RYF 1,780,000 (KRW)
Is there any way to do business with my customers?
Even if the contract is signed after August 1, is it true that there is no change in the amount of the quotation?
Thanks
Jinhee Lee
@alexbeck to give the simplest yet most comprehensive answer, we are working quickly to provide clear communication on mid-year upgrade pricing with examples.
@Azusa_Toyoda 1. if the customer is upgrading at renewal, the cost for the additional user would be $579 = $12,155 (renewal amount) / 21 (existing users). So the new renewal invoice for 22 users would be $12,734.
2. Typically exchange rates are fixed around October.
@ChulHee_JMP we will honor the renewal pricing stated in futures letters that have already been sent out. Upgrades at the time of renewal or after renewal will have to follow new JMP pricing rules. As stated above, we are working on communication with clear examples of how this will work.
Thanks very much, @LaurenAldrich!
I'm looking forward to seeing the clear examples as well.
@Daniel_Valente thanks for your email on postponing the new pricing model to Jan. 10th 2023. Quick question: we quoted NAL customers already based on the new pricing model. Especially we were going after lost JMP Pro opps from the past. Do we have to withdraw these offers now?
Alex, the answer to your question has been communicated to sales management worldwide.
Is the price changes for Academic lisences also delayed to Oct 1?
Thank you! -Atsuko
