Redgate Software to Switch to Subscription-Based Model

Redgate Software, a provider of Database DevOps solutions, is joining other business software providers such as Microsoft, Sage, and Adobe, in moving to a subscription-first model.

From January 2022, the majority of its product portfolio will be offered on a subscription-first basis, rather than solely under a perpetual license agreement.

Redgate already offers products like Flyway, Redgate Deploy, and Data Masker on subscription, and more recently has trialed subscription offerings for its SQL Prompt and SQL Monitor products, which were widely welcomed by both new and existing customers.

Moving to a subscription lowers upfront costs, provides instant access to the latest features and security upgrades, and gives customers a more transparent, all-in price with support included, according to the vendor.

This pricing approach is the same for enterprise solution sales or sales of DBA and developer tools, bringing consistency to the pricing terms along with annual subscriptions.

For many businesses and organizations, the main driver will be moving capital expenditure (CapEx) costs from the balance sheet to a lower, more manageable and predictable operational expense (OpEx).

For others, it will be stable budgets in the medium to long term with no large unexpected calls on cashflows, the company said.

“By default, simplicity is part of the subscription model agreement. There’s one yearly subscription which is easy to plan and budget for and increase or decrease the number of licenses in use,” said Tom Austin, director of customer success at Redgate. “Our customers can equate that directly with the value they gain from the software. That in turn puts an obligation on us to ensure the software stays current with the changing technological and security environment out there, and truly delivers the advantages customers expect.”

Redgate has already announced the move to the subscription-first model to its existing customers, and is working with them to transition to the model in the easiest way possible.

For those organizations with established internal processes which are tied to CapEx budgets, perpetual licenses are still being offered.

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