MicroStrategy Consolidates Analytics Products, Simplifies Buying

G00268553

Analyst(s):

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Summary

By consolidating its analytics products and making pricing transparent, MicroStrategy has made it easier for customers to understand its products and pricing and reach a buying decision.

News Analysis

Event

On 8 July 2014, MicroStrategy announced the consolidation of its analytics offerings, from 21 products to four, role-oriented packages.

Analysis

The consolidation of the MicroStrategy analytics product line should make it easier for prospective and existing customers to understand the company’s products and pricing and, ultimately, arrive at a buying decision.

MicroStrategy’s change in its product line is well-timed. When it comes to business intelligence and analytics products, customers are increasingly demanding an easy-to-understand and easy-to-manage pricing model as they are deploying these technologies more pervasively across the organization.

At the same time, in the survey for "Magic Quadrant for Business Intelligence and Analytics Platforms," MicroStrategy customers cited cost as the No. 1 barrier to broader deployment of the company’s products. The consolidation of the MicroStrategy analytics products has the potential to remove this barrier to adoption and deliver higher value. In the past, many customers did not deploy important features (for example, those for management and governance) because those features came as options with a high cost. Now those features, along with others, come bundled together in the new products: MicroStrategy Server, MicroStrategy Web, MicroStrategy Mobile and MicroStrategy Architect.

By removing this cost barrier, MicroStrategy has increased its competitiveness in a crowded market. This move represents a tipping point where streamlined packaging and buying models will become the new norm. By consolidating its product line, MicroStrategy is also modernizing its market image and may make customers more open to considering its broad range of big data capabilities, including those for emerging requirements like governed data discovery.

To move to the new pricing and packaging, customers must be on MicroStrategy 9.3.0 or later. MicroStrategy has stated that its license conversion formulas for existing customers are intended to give customers the maximum functionality and user counts in a revenue-neutral way. This should encourage customers to upgrade and take advantage of both new features and more favorable pricing.

Recommendations

MicroStrategy customers on versions 9.3.0 or later:

  • Talk to MicroStrategy about the implications and benefits of moving to the new licensing and product model.

  • Talk to MicroStrategy about the formulas for converting existing products and quantities of licenses to the new model before requesting a new license key.

MicroStrategy customers on versions earlier than 9.3.0:

  • Talk to MicroStrategy about the features of 9.3.0 and later versions, as well as the benefits of the revised packaging and pricing, and determine if there is a viable business case for upgrading to the new products.

Prospective MicroStrategy customers:

  • Consider the new product packages if, in the past, complex products and pricing have been a barrier.

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