Price Increase query

[bhlgr015]

So it seems like since our last renewal veeam prices have increased massively (along with the push to move to subscriptions). I was used to the price increases each time but not this massive jump its nearly a 50% increase. We tend to do 3 years at a time but this time theres not even a multi term discount let alone the massive jump.

Veeam Essentials Enterprise (VMware) Basic 2015-2018 £2,800.00
Veeam Backup Essentials Enterprise Basic 2018-2021 £3,100.50 11% Increase
Veeam Data Platform Essentials Enterprise Basic 2021-2024 £3,602.55 16% Increase
Veeam Data Platform Essentials Enterprise Basic 2024-2027 £5,211.18 45% Increase

We are a small company with very basic backup requirements, I get the product is evolving and trying to offer a lot more but we just dont use 90% of these extras. Looking at now comparing the free/community version with the paid for version due to this massive increase.... or is my reseller just trying it on?

[Mildur]

Hello Michael

Unfortunately here in our RnD forum we cannot assist you with sales related questions.
I suggest to contact our customer sales team to talk about the prices you have received from your reseller:
https://www.veeam.com/contact-sales.html

Best,
Fabian

[Gostev]

45% is clearly off though. Check with other resellers perhaps, as I know in the past few years (2021-2024) our price increases were closely tracking inflation, so nothing as significant as you're told.

We do revise prices annually and the exact price increases usually vary depending on the SKU, however we're talking about 5% increase on average across all SKUs annually in the past few years. So some SKUs perhaps a bit higher and other had no changes at all (e.g. Veeam Essentials in 2024).

This avg. 5% increase was also the case in January 2024, so 45% over previous years is just strange to see... makes no sense to me.

[mjr.epicfail]

You can also try to contact a veeam cloud service provider (available in the pro partner portal)

You can probably get a pay per use license

[bhlgr015]

Appreciate all your comments. I've reached out to another of our resellers to see where they come in for the renewals and then will look to take it from there. Hopefully theres some room to bring these costs back down, because as noticed they do seem a little out of the normal range we would expect.

[bhlgr015]

Looks like an alternative reseller is coming back with slightly increased pricing pushing this renewal to 49% increase so somethings definately happening here. I appreciate theres very little that can be done on this forum. I will reach out to veeam sales directly to see if they can explain the big increase.

[Gostev]

BTW are you sure your initial purchase and previous renewals were at MSRP? Could it be that they were at a significant discount? Because MSRP to MSRP we did not have anywhere near 45% price increase for sure.

One other idea I have is currency exchange rate. I don't know where are you located but the last few years were stormy for most currencies. So potentially a large portion of the increase can be just due to this alone. As our price lists are global and USD-based, so if you're not based out of the U.S. then some years you may win and other years you may lose.

[bhlgr015]

As far as I am aware we never had any significant discount, and certainly the reseller I usually deal with doesnt offer me any special pricing without making a point of it. We are UK and pay GBP but I dont think the exchange rate would make up for this difference. Will see if sales can help shed any light on this when they reach out to me.

[Gostev]

Actually, I see that USD to GBP exchange rates were changing up to 30% in the past 3 years... so really huge deviations both ways
https://g.co/finance/USD-GBP?window=5Y

[bhlgr015]

Agree there was a big swing in around oct 2022 but between oct 2021 (our last renewal date) and now theres only about a 5% difference.

[bhlgr015]

No word from sales which is a little disapointing. I'll have to try give them a call myself to see if I can speak to someone.

[lando_uk]

If it helps, I just went back through my invoices and it's gone up 25.3% since Jan 2021 - Jan 2024. This is for the old fashioned perpetual socket licenses.
I always get 3 quotes from different suppliers and try to drive down prices.

[Gostev]

Then VUL price increase has got to be lower than that for the same period. As in addition to inflation, price increases for legacy Socket-based licenses also account ever-growing VM per Socket density caused by rapid CPU evolution. I definitely remember that or one of annual increase for Socket licenses was 10% while VUL was just 5% that year.

[bhlgr015]

If it helps, I just went back through my invoices and it's gone up 25.3% since Jan 2021 - Jan 2024. This is for the old fashioned perpetual socket licenses.
I always get 3 quotes from different suppliers and try to drive down prices.

Interesting that you saw 25% increase and I'm seeing almost 50%.

[bhlgr015]

Also looks like Veeam sales are either all busy or on vacation because twice I filled in the contact form and even emailed directly and not one person has responded. Not having a great experience this time.

[mjr.epicfail]

Hi Michael,

We can deliver rentals if you are open to that, you can shoot me a DM for some more info.

[bhlgr015]

Thanks @mjr.epicfail but I believe rental gives control of the VB&R to MSP's and clients are not meant to be able to control anything unless I am mistaken?

[Gostev]

Yes and no.

Rental licenses are indeed designed for MSPs to deliver managed backup services. So it is definitely not an alternative way for end users to license Veeam. We have dedicated licensing for end users who want to fully manage their own product deployment.

With Rental licenses, MSP is expected to be the "primary" user of the software. However, it does not mean MSP client cannot interact with the UI on their own, for example to perform restores or start backup jobs.

MSP being primary user also means that it is MSP that must open support cases with Veeam (and not their client opening support cases directly).

[mjr.epicfail]

Gostev gave a good rundown, but we can refer you to a MSP in our network if you are not an MSP yourself.
This is ofcourse a backup if you don't get the quote you want.

[bhlgr015]

Thanks both, rental would not be suitable for us due to how this is expected to work as described above.

The options for us is to hope we can get in touch with sales and that they do indeed find a solution to the pricing or we have two choices which is suck up the 49% increase or move to the community edition (which actually would cover us for everything we currently use, except for the rare support interaction).

[aj_potc]

We are a small company with very basic backup requirements

This may be the reason you aren't getting responses when trying to contact Veeam sales. I had the same issue a few years ago. It seems they [Veeam or the resellers, I'm not sure which] ignore you if you're considered small. I did have some luck contacting resellers directly through reddit, of all places. In the end, I just bought what I needed directly through the Veeam Store, as resellers couldn't offer any discounts. (That may not be available in the UK, but is for the US.)

or move to the community edition (which actually would cover us for everything we currently use, except for the rare support interaction).

I could do that, too, but I've needed support too many times and see real value in having a support contract for my small number of production systems. It's relatively cheap insurance, though getting progressively more expensive every year.

[bhlgr015]

Well i tried to call sales, held on the line waiting for someone to speak with but eventually got the message that no-ones available and being diverted to voicemail... not good.

[Gostev]

I'm told Veeam has no sales reps aligned to this market segment (less than 50 workloads) in principle, this business is always Partner-led. If you're unable to find any partner who's interested in working with you, you may consider just using Online Store as it was already suggested by the previous poster.

Since you said CE covers your needs, it seems you only need two 5-packs of Veeam Essentials, which I see is just CHF 810.30 in my local currency (Swiss francs).

[bhlgr015]

Thanks Gostev, we have a partner but just question the 45-49% increase in costs. The online store is not suitable as this is a renewal and for perpetual / socket licencing. Thanks to everyone for their input, we will figure something out.