Vignette Tries Subscription-Based Licensing Model

Certainly as the article appropriately points out - Vignette is neither the first - nor the only WCMS to offer this type of payment model for the licensing of the software. And, even though I'm a marketing guy - I still understand the difference between "financing" and "leasing". Isn't it convenient that the one year commitment equates to exactly what the retail license would be. Ironically, even though it's not a "subscription" this continues to point out the benefits of a true "subscription" based pricing model when it comes to web content management software. We're certainly glad to see Vignette coming around to this way of thinking.

With a "subscription" based model you pay-as-you-go for the use of the software - and when you're finished (or quit) you stop paying. For us, that's monthly. So, just be mindful that while it's wonderful that Vignette is offering a 12 month payment plan in these tough economic times for the license to their software - this isn't a "subscription". If your project doesn't succeed in the 6th or 7th month, You're still on the hook for the remainder of the year or contracted period. And depending on the accounting rules of your particular organization, you may still have to take the charge full boat - regardless of the benefits to the cash flow spreadsheet.

Good points although I cannot see how 12 x $9k "equates exactly" to the retail license price of $200k.

I'm assuming as per the article that $12 X 9 is the quick start product and $12 X 18 = the "enhanced suite" - According to the article $100K and $200K for each...

Matt and Robert,

Thanks for your comments. Good thoughts!

As far as the math goes, I imagine the numbers (coming from Vignette) are approximate. I wouldn't use "exact equations" here. Licensing doesn't seem to be an easy topic with Vignette ;)

On a different note, QuickSite is just an optional PS package, which can be added to both the "simple" suite and the "enhanced suite."

Vignette is not claiming to be the first WCMS vendor to offer subscription based pricing. What Dave said in his quote is that Vignette is the first ENTERPRISE WCMS vendor to do this. There is a difference, which Irina rightly points out when she wrote “(these vendors) may not necessarily fall on the same short-list with Vignette”. Vignette serves a different market than the small-to-midmarket vendors like Crownpeak, Sitecore and the like.

For Vignette’s customers, a 12 month commitment makes perfect sense. Sure, if you are one of Crownpeak’s customers and you need a landing page for a tactical project or a promotion that may not even be around in 12 months you will probably look for a month-by-month commitment. But if you are Telefónica, Cathay Pacific, Marriott Hotels or NASA and are looking for a true enterprise WCMS to bet your business on, then you are surely thinking much longer term than a year.

Let me clarify on pricing: QuickStart is a fixed-cost professional services offering that accelerates time to deploy a WCM system while leveraging 15+ years of experience from Vignette’s professional services in deploying similar systems for the World’s greatest brands. It is priced well under $100K and can be combined with any of the WCM suites independently of the pricing model you choose (perpetual or subscription). For more information go to www.vignette.com/quicksite .

Vignette announced two WCM suites: one priced at under $200K for perpetual license and under $9K per month for subscription. The second one is priced at under $400k for perpetual and $18K for subscription. Either one of those can be combined with QuickSite. I hope this helps clarify.

Rob Rose hit the nail on the head. I couldn't agree more.