Egnyte pricing
Posted by HeyBaumeister@reddit | sysadmin | View on Reddit | 12 comments
Just received a quote from Egnyte which includes a yearly price increase of 7%. That seems quite steep. Has anybody else noticed this? If not for Egnyte, are there other common vendors that include such a term?
DjGrAsShOpPeR@reddit
Egnyte has increased my pricing by 7% 3 years in a row. 21% increase in 3 years. They structure their plans so you can't downgrade without losing something essential (like SSO). If you try to lower your user quantity, they just increase the cost per user stating that with the higher number of users, you are getting a bigger discount per user. We went from paying 12/user (under 100 users) in 2018 to paying 35/user (400 users) today. That is just shy of 200% increase while adding 350 additional users. Their justification... new enhancements and inflation. I am working on an exit strategy.
Shesays7@reddit
Great feedback. Thank you!
Preetesh_Egnyte@reddit
Hello, as a member of the Egnyte team, We strive to provide the best service possible, and it's disheartening to learn that we fell short of your expectations. Thank you for bringing this to our attention, and I hope we can address your concerns.
If you're open to it, I'd like to connect with you internally to better understand the issues you've encountered and work towards a resolution. Please let me know if you'd be interested in discussing this further.
RikiWardOG@reddit
Can you negotiate with them? We've seen companies try to pull this shit with us and we won't sign unless they change the terms. We signed for a 3rd party patching solution and they tried something similar with auto renew and we had them remove both
IamHydrogenMike@reddit
7% uplift every renewal is pretty common for a SaaS product, you should always negotiate before an auto-renew on your agreement as most will drop it to either a few points lower or to zero. It’s also why you should try to do a multi-year agreement if you and it’ll help you avoid these automatic uplifts.
SendAck@reddit
I've been seeing more vendors not offer any multi-year agreement.
IamHydrogenMike@reddit
It can depend, the providers I have worked for preferred it because they’ve can lock in that revenue for a few years and not have to negotiate as much.
SendAck@reddit
Yeah I used to do it on everything but the last year or so as we go to renew or bring in new services more and more are not offering a multi year.
IamHydrogenMike@reddit
I’ve been on both sides of the table…multi-years were great but I think a lot of providers now assume you are locked in, the chance of renewing is much higher.
RikiWardOG@reddit
I hate buying into multi year when it's your first year with a vendor though. Just because your couple weeks testing with a small subset of users went ok doesn't mean the company isn't actually full of shit and blowing smoke. but I just don't understand how they think 7% is justifiable. Maybe if inflation was always like what it's been recently but normal years, get real.
IamHydrogenMike@reddit
It’s justifiable because they say it is…lol…it’s also there to be used as a negotiating tactic to make you feel like you get a deal if they knock it off when you renew. I feel ya about multi year deals, I’ve been in both side of that table..
monkeyreddit@reddit
If there is a yearly escalator on an evergreen contract, it’s typically around 5% if written by the software company.
You can typically negotiate that at contract signing, and a good rule of thumb is to tie it to no more than the consumer price index of non energy goods. I try to get closer to no more than 2.5% uplift.
That being said, many vendors are dropping the percentages and are just putting in their auto renewals “market rate” or “then current rate.” With this they have you by the balls if you don’t renegotiate before the end of the term, or whatever timeframe they have in the agreement.
As others said, try to get into a multi-year deal as that will offer a locked rate over the term at a discount for the committed revenue.