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This could be directed to within a customer licensing portal or the licensing area within Veeam itself. Any simple eCommerce site could accomplish that for Veeam. That would be, in-fact, my own preference. I think most Partners would be delighted to not earn the $66.00 on the renewal and give that whopping sale back to Veeam as their own direct income. While you pose significant points, there are great opportunities for discussion here. And I can always pass the feedback on to the right folks in the organization, as long as it makes sense to me (so that I can defend it). But I do feel responsibility to fix issues that may inhibit my product's adoption - and as this topic shows, they are not always with the product itself. making it an obvious no-go.Īny other possible solution I am missing? Do you have anything else in mind? Please note that I am with R&D (Product Management) and so I can be missing some obvious enhancement on the sales/business side of things. Which actually makes renewal price the same as MSRP (AFAIK, current renewal cost is 25% of MSRP). If you don't treat this activity as an upsell opportunity, and rather as a purely technical repetitive task, then perhaps you can avoid a phone call completely, sticking to emails and automating the process (with email templates etc.) so that it does not require any special skills and can be handled by the most junior person - or even outsourced.īumping the current renewal price 4x on our end, to accommodate the way you chose to do your Veeam renewal business (4x is the minimal increase for you to make some profit, based on the numbers you have provided above). If my statement is fair, then some obvious solutions could be: Would it be fair to say that the fundamental cause of Veeam renewal business costing your company money, is your choice of using $125/hr engineers for closing $66 renewal deals? Or is it something else? It's really important that we're on the same page about the root cause, before we star looking for the solution together. I also don't want that for my customers.ĭoes anyone else feel as though Veeam is taking advantage of their partners? Is anyone else dealing with these pitiful renewals, and simply accepting that you're taking losses on them only because Veeam is solid? Are you all moving your clients to other products, away from Veeam? If so, what are you using?
VEEAM PRICING SOFTWARE
Who wants software for 5-years?! I dont want to be stuck in 5-years when something better comes along. That is an average size renewal for 5-years. I think at most we'd average about $200.00. We wont earn $250 on renewal for 3 or 5-years. To close the gap in renewals we can sell multiple years, but it's still at a loss. But then we factor in year after year of losses for renewals. And in the end, we earn a few dollars (heaven forbid!). We have pre-sales efforts, designing, proof of concepts, demos, etc.
VEEAM PRICING FREE
That sounds like a lot, but the software isn't free to begin with. We recently earned about $7K in margin for a much larger customer environment with new software sale.
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We earn quite a lot up front on a new sale. The sales engineer using 2-hours of his day ($250) means we come up short by $184.00 just doing renewals end to end. On a renewal for 6 sockets, we earn about $66. That is, our average customer has 2-3 physical hosts, shared storage, and uses Veeam with VMware. On average, our customers have about 4-6 sockets in their environment.
VEEAM PRICING LICENSE
That includes open to close, getting quotes, placing orders, installing updated license keys, etc. Our sales engineer (with whom I interact regularly, and whom I am not (No, I dont have disassociative identity disorder) spends roughly two hours per customer renewal. The issue I take with Veeam is that we charge $125/hr per engineer. As an individual, I am completely against Veeam wholly. In fact, we're not only a Veeam VAR, but also have an SPLA with them.