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Renewal Costs up 25% - Watch your next renewal


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#1 Bert Lousteau

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Posted 23 September 2019 - 02:01 PM

We just go the renewal quote for our Email Security Gateway 400Vx Sub License.  It is up about 25%. 

 

After questioning Barracuda, this is the response we got back:

 

 

"We had a 25% increase on this product after no increase for 7 years.

 

The tariffs increase the overall cost in providing support in general, so it does affect the renewal cost as well.

 

In addition to tariffs, this product has only had 3 increases in 15 years, and was pretty far below the industry standard for pricing.  So the increase was a course-correction to catch up with the industry average."

 

 

 

Way to go Barracuda, hit all your renewals with a 25% increase with no warning.  They could have at least phased in the increase.  Nothing like a surprise extra thousand a year for no gain to the customer! 



#2 Michael Manning

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Posted 24 September 2019 - 09:28 AM

Yeah, my reseller warned me about this a while back. I guess they let the partners know about it and figured those partners would pass on the info.



#3 Bert Lousteau

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Posted 24 September 2019 - 11:34 AM

My reseller sure didn't know.  I ordered from the quote they sent me, the order was cancelled, then I was informed that a new quote was going to be prepared bc of the change in pricing. 

 

We are too close to the renewal to switch this year, but most likely will be switching.   We have all their firewalls, web filter and spam filter and it is a great ecosystem.  Problem is, they planned their business model incorrectly by outsourcing to much and are now passing their mistake onto the customers.   The other issue is: what is next?  Are we going to have to raise the price 25% on everything now?   They could have done a better job of letting their customers know this was going to happen. 



#4 Michael Manning

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Posted 25 September 2019 - 10:50 AM

Yeah, it definitely wasn't a lot of heads up. I want to say my reseller warned me about it a month or two before we renewed at the end of June.



#5 Michael Manning

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Posted 25 September 2019 - 01:08 PM

You know I just went through and looked at all of our renewals since when we originally bought our 'Spam Firewall' back in 2004. I can say since then the renewal cost has gone up every 2 or 3 years, so I'm not sure where they come up with only having 3 increases over 15 years. Over the last few years renewals have increased every year. 

 

What I have found out recently is that there won't be any quantity discounts for renewing for 3 vs 1 year. There used to be a pretty significant discount if you renewed for 3 years vs single year renewals. 



#6 Chris Zimmerman

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Posted 08 October 2019 - 03:13 PM

Is there any way to renew anymore online?  Seems they are running everything through a sales person at this point, making renewal a big pain in the butt!



#7 Michelle Exner

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Posted 10 October 2019 - 05:17 PM

Actually the increases in price are because we have improved the overall product quite a bit over the last couple of years and have also added the cloud protection layer with advanced threat protection to the mix.

Your sales executive should also be talking with you about moving from the hardware unit to the Barracuda Email Security Service. This is our cloud based spam filtering solution which has many more features than the hardware unit which is limited by the actual hardware in what it can do.

The future of spam filtering is going to be in the cloud and is where we recommend all our customer think about moving their service to.

Sincerely,


Michelle Exner
Product Lead Support Engineer
Barracuda Email Security
(408) 342-5300


#8 Michael Manning

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Posted 11 October 2019 - 09:16 AM

Actually the increases in price are because we have improved the overall product quite a bit over the last couple of years and have also added the cloud protection layer with advanced threat protection to the mix.

Your sales executive should also be talking with you about moving from the hardware unit to the Barracuda Email Security Service. This is our cloud based spam filtering solution which has many more features than the hardware unit which is limited by the actual hardware in what it can do.

The future of spam filtering is going to be in the cloud and is where we recommend all our customer think about moving their service to.

Sincerely,

Thanks Michelle. It might be a good idea to have some sales training to coach the internal sale team and channel partners about this. I know it has been brought up to me in the past but really informally.



#9 Jaybone

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Posted 16 October 2019 - 11:37 AM

Actually the increases in price are because we have improved the overall product quite a bit over the last couple of years

 

Sorry, but I have to call BS on that.

 

You've been helpful over the years, Michelle, but how can you seriously say, with bugs left unresolved for years (message log search broken - doesn't return results at all, or only a subset) and the company's complete lack of concern for high-priority feature requests (see: various MS Office macro fiascoes) = "improved the overall product quite a bit?"

Indeed, Barracuda has done the bare minimum for this product over the last several years.  Where once they were an industry leader, Barracuda is now just another also-ran.  At least it's still cheaper than the (admittedly better-performing) competition, for now.



#10 Kevin Goebel

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Posted 18 October 2019 - 01:37 PM

"Actually the increases in price are because we have improved the overall product quite a bit over the last couple of years and have also added the cloud protection layer with advanced threat protection to the mix."

There wouldn't be a spam problem if the solution proposed by Jack Rickard, Editor of Boardwatch Magazine, back in 1998 had been adopted. He suggested paying 1st class postage to send an e-mail, with part of the money to go to the sending and receiving mail servers, and the rest going to the recipient. He noted both a pay system and the "free" system we currently have could run side-by-side - allowing consumers to use either or both. Unfortunately, too many people were hooked on the concept of free Internet services and the idea never got traction.

#11 Michael Manning

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Posted 18 October 2019 - 01:43 PM

I don't know about that, I still get plenty of uninvited physical junk mail, and sending through the USPS isn't free.