WatServ Pricing Model

WatServ is a Cloud Computing company not a traditional “hosting” company.  Managed hosting services are just one of the four components that a Cloud Computing company provides.  The other three are infrastructure as a service, software as a service and outsourced IT as a service.

WatServ provides these four groups of products and services in a single “per-user-per-month” fee.  This subscription-based pricing model differentiates Cloud Computing companies from “environment-based” pricing that is provided by hosting companies or flat fee pricing provided by SaaS providers.

For customers, there are significant advantages to WatServ’s pricing model:

• Flexibility. Customer costs rise or fall depending on the number of users on the system which gives customers price flexibility. Compared to hosting companies or SaaS companies, this is a considerable difference. Their monthly flat-fee pricing does not change with user counts.  An environment for 50 users costs the same every month whether there are 5 users on the system or 50 users. We’ve had customers go through restructuring where user counts and our pricing dropped by 25%. This wouldn’t happen with hosting companies or SaaS companies. The monthly price would not change.
• Lower Cost. Cloud Computing is considerably more economical than hosting or SaaS providers – especially in the first year. Consider a 50 user system where a hosting company and a SaaS provider quote $5,000/month ($60,000/year). A Cloud Computing company may quote $100 per user per month which is $5,000/month for 50 users but the first year may cost only $36,000 or less due to the time to ramp up from 5 users to 50 users. Call for more details.
• Scalability. When a system is quoted for 25 users, hosting companies and SaaS companies engineer and charge for 25 users. If the user count increases to 50 or 100 users, new servers and higher fees will apply to build the new environment(s). With WatServ, the $per-user-per-month fee includes scaling up additional infrastructure – and $per-user-per-month cost declines with quantity.  Call for more details.

If it’s not priced on a subscription basis ($ per user per month), it’s not Cloud Computing.