August 7, 2017

Why There is Up Front Pricing Now

Mark Olschesky
Mark Olschesky

Datica Alumni — Former Chief Data Officer

Almost three years ago, I wrote a blog post about why there was no up front pricing for the Datica Platform or our integration services. It was as earnest as I could get about how I felt about our sales model at the time: there was no shortage of people who came to our website not understanding why handling some aspects of HIPAA compliance or data integration wasn’t as cheap as a $5 Digital Ocean droplet.

Old office That’s me in 2015, in the background of a photo in Datica’s original office.

*Editor’s note: As we roll out updates and changes to our new Kubernetes-based compliance platform our pricing is fluxuating and we’re temporarily back to providing custom quotes based on specific configurations.

We’ve done a lot of work since then, and we’ve now changed our opinion on the topic. We now offer up front Datica pricing right on the website: I’d like to go through my old article and discussed what changed and why we now offer upfront pricing.

1) “First, our pricing is non-standard, which can lead to buyer confusion.” & 2) “Second, we discovered prospects were making apples-to-oranges comparisons with companies who weren’t direct competitors.”

Realistically, our largest competitors in the compliant cloud space aren’t other PaaS vendors but rather DIY solutions on one of the major IaaS vendors like Amazon or Azure. At the time, it was hard to communicate exactly what the total cost of ownership for build vs. buy would be, since we didn’t fully understand our costs as we were building infra at scale and going through our initial sets of audits. We’ve since written massive amounts of documentation on the subject: our HIPAA and HITRUST guides provide in depth details on effort and costs while our open-sourced policies provide a detailed roadmap of what it takes to prove HITRUST certification if you were going to DIY. If you work in a “We build everything 100% here” shop, you’ll find the policies useful for your own build-outs. If you are looking to partner with a vendor, we now can provide you with the data to demonstrate that we provide the best value on the market.

3) Third, we saw that often prospects weren’t entirely sure which one of our products to choose, so they would choose neither.

Datica is the platform on which everything is built. Compliance is the top requirement for all digital health applications and it’s where developers looking to build or move to the cloud need to begin. Something like integration is built on top of the platform, in a complementary fashion. We didn’t know how to communicate this best in 2015 and we probably didn’t help ourselves with mountain climbing analogies later that year with Redpoint and Stratum. We’ve figured out better ways to communicate that we want to be your one stop shop for all your tough challenges in building digital health products in the cloud — above hosting and interface engines.

4) Fourth, we believe strongly in a core message of the Lean Startup movement: We want to talk to people.

Don’t worry! We’re still out talking to people. We just don’t need to bake it into all pieces of the sales process if you aren’t interested anymore. In fact, we used a lot of feedback and discussions from customers and prospects to build the Digital Health Success Framework.

While we made it easier to see our pricing and features, we still want to talk. It might be our midwestern roots, but we want to learn more about what you’re working on and the challenges you’re going through on your projects. We want to help, even if it means we send you along to someone else. Don’t hesitate to reach out!

tag Open Source Cloud Computing Pricing