Dear Valued Customer
EFFECTIVE: 01 SEPTEMBER 2020:
PLEASE READ THIS EMAIL IN ITS ENTIRITY and contact our Account Manager if you have any queries concerning this.
Effective 01 September, Barracuda is changing prices for its Email Security Gateway (Spam Firewall) also known as Barracuda ESG. We want all our direct or indirect customers to know about this change and how they will impact their pricing and solutions.
The new PMPU model will cost users $25/ User/Year on an aggregated user.
Obviously not every customer will be able to affords this and we have many customers with similar concerns. Some of the customer who cannot afford the new high price, we have already switched them to an alternate product.
We have identified mostly three categories of customers so please read the following and contact your account manager for your specific product or solution if using on-cloud, on-premise or hybrid or shared solutions.
CUSTOMER CATEGORY A: HIGH CORORATE SECURITY, HIGH PERFORMANCE
If you are a CUSTOMER;
§ Who look for features and not the pricing and high standards for enterprise grade security
§ Who choose products based on features and not pricing
SOLUTION A: You can continue to use Barracuda but make sure you contact your Account Manager to figure out the price change if it applies to you and as to how would it impact you.
Barracuda Email Security Gateway (ESG) / Barracuda Spam Firewall
CUSTOMER CATEGORY B: OPTIMIZED SECURITY, WITH LIMITED BUDGET
If you are a CUSTOMER;
§ Who look for features and but can not extend the budget
§ Who choose products based on pricing but then look for best feature too?
SOLUTION B: Security Gateway by MDaemon is the best solution that is deployed for thousands of customers. If you wish to compare Security Gateway with Barracuda ESG, here is the feature comparison;
Security Gateway Vs. Barracuda Email Security Gateway
NOTE: We have been promoting MDaemon for over a decade now and that THOBSON is the MASTER DISTIRBUTOR for MDaemon and all its product for over20+ countries now. The solutions is used in over 190 countries.
CUSTOMER CATEGORY C: OPTIMIZED SECURITY, HIGH PERFORMANCE, LOW COST
If you are a CUSTOMER;
§ Who is either using Office 365 or G-Suite or Hosting Solutions or an on-premises Email Sever;
§ Have very limited budget
§ And want to have all-in-one solutions with emails hosting and spam solutions built into one single solutions.
SOLUTION B: You must look at our Premium Business Email Solutions which comes with all the built-in features where You DON’T HAVE TO;
§ Purchase Separate Email Solution
§ Office 365 or G-Suite
§ Or any One-Premises Mail Server
§ Or high Administrative Cost to manage it.
PREMIUM BUINESS EMAILS
We have shared some of the general answers in our FAQ - Frequently Asked Question which are made part of this announcement;
FAQ – Frequently Asked Questions:
WHAT ARE OTHER COMPETITIVE PRICES FOR OTHER PRODUCTS
| PRODUCTS / SERVICE |
PER USER COST |
ADDITIONAL COST |
| Barracuda ESG |
$25 Per User Per Year |
Plus cost of appliance / hardware |
| Cisco IronPort |
$25-$30 Per User Per Year |
Plus cost of appliance / hardware |
| Security Gateway |
$10 /user/year |
No Additional Cost |
| Fortinet (with ATP) |
$15/user/year |
without ATP + Cost of appliance |
| Fortinet (without ATP) |
$25-$26/user/year |
with ATP + Cost of appliance |
| Premium Business Email |
Included with the price of Mailbox |
Zero Cost. |
*Price are based on 400 users are estimates based on their recommended number of users. Their pricing is comparable to new Barracuda pricing
WHAT IS ESG USER-BASED PRICING?
Starting September 1, 2020 any new ESG customers will be charged on per user bases (similar to Email Security Services) rather than previous flat fee. The price of $25/user/year will now include ATP. All new customers will be required to purchase ATP with their ESG appliance, providing comparable capabilities to the Essentials Security edition.
WHY ARE WE INTRODUCING ESG USER-BASED PRICING?
We want to drive customers to Essentials for their email security needs. Customers often choose ESG solely based on lower prices rather than functionality or the need for on-prem solution. If a customer has a legitimate need for an appliance other than price, we can still offer that to them. But price should no longer be a reason to choose an appliance over SaaS. Essentials will deliver a better solution in a long run. It has more frequent updates, easier to scale and add seats. It also allows for an easier path towards TEP, which will provide the best security customers need. We want to focus on solutions that have most value for our customers and upside for our business.
ARE THERE VOLUME TIERS FOR ESG USER-BASED PRICING?
There are no volume tiers for ESG user-based pricing. Large organizations interested in email security should evaluate Essentials for built in volume discounts. If you have a large customer that has a legitimate need for an appliance and needs a volume discount, please use the SPE process
ARE THERE EDU DISCOUNTS?
No, there are no EDU discounts. EDU prospects should consider Essentials for additional discounts
IS THERE A GRACE PERIOD FOR DEALS ALREADY IN FLIGHT?
All deals using old ESG pricing should be closed by September 1, 2020. All ESG deals after September 1, 2020 will be priced and closed using new user based pricing.
HOW DO I SIZE THE APPLIANCES?
What about buying a second unit for HA/redundancy? There are no changes to sizing recommendations and second unit policies. We should continue to size hardware as before – the per user charge is a new subscription that replaces EU/ATP.
DOES THIS APPLY FOR BOTH PHYSICAL AND VIRTUAL APPLIANCES?
Yes, this applies whether the customer prefers a physical or virtual form factor.
WHAT IS BARRACUDA’S INSTANT REPLACEMENT POLICY?
Instant replacement prices remain the same for existing customers.
WHAT HAPPENS WHEN CUSTOMERS ADD MORE USERS TO AN EXISTING SUBSCRIPTION?
The same renewal scenarios above apply as do today. If customers want to add another appliance for high availability, they purchase an additional appliance. If they want to add users, they add on new users.
HOW DOES COMPETITION PRICE THEIR ON-PREM ESG?
Fortinet and Cisco/Ironport are only two major vendors with hardware appliances.
Fortinet for 400 users company.
(note: Fortinet does not price per user, prices below are estimates based on their recommended number of users. Their pricing is comparable to new Barracuda pricing)
§ $15/user/year without ATP
§ $25-$26/user/year with ATP
Cisco / Ironport:
§ $25-$30/user/year + cost of appliance
WHY IS BARRACUDA MAKING THIS PRICE CHANGE?
We are leaving money on the table continuing to offer the lowest priced email security offering on the market. Not all customers need an on-premise solution, in fact most don’t and are only buying our ESG to save money. Encourage your customers to consider solution they need based on functionality rather than price. There are a number of benefits of cloud-based solution Vs on-prem:
§ Easier to service and renew
§ On-going investment and development on cloud email security by Barracuda
§ Creates upsell opportunities to grow accounts overtime
§ Larger customer lifetime value
§ Better value and level of protection for customers
We expect a significant number of prospects to choose Essentials over ESG. Our financial modeling shows that most cases this will be a net positive change for Barracuda partners.
