Yearly Maintenance Subscription

[kenm]

I work for a company that provides enterprise data center infrastructure performance monitoring, as in, we help DC managers find and correct pinch points within their infrastructure. Our old business model was to sell a customer a solution along with a multi-year maintenance plan. We have moved to a subscription model that allows the customer to pay for maintenance yearly, as a subscription. I wonder if HST should consider such a model?

ARR, or Annual Recurring Revenue, is the key objective here.

Thoughts?

[randy]

I work for a company that provides enterprise data center infrastructure performance monitoring, as in, we help DC managers find and correct pinch points within their infrastructure. Our old business model was to sell a customer a solution along with a multi-year maintenance plan. We have moved to a subscription model that allows the customer to pay for maintenance yearly, as a subscription. I wonder if HST should consider such a model?

ARR, or Annual Recurring Revenue, is the key objective here.

Thoughts?

I have always thought this was a good idea. A smaller fee for annual incremental upgrade option. A larger fee for version updates (HS4>HS5). You purchase a version, for a year you get incremental updates. To continue upgrades is a modest annual fee.

Im sure some would balk, but it is reasonable for HST to have a revenue stream from existing products. I use a couple of software products that employ this method.

[shennecke]

My last home automation software worked that way. I would think that is the model to have as it generates steady revenue and allows staff to be hired to do the work on it.

[TC1]

I agree with both of you in principle.... but... HST has clearly demonstrated they can't be consistent (in anything).

I remember after I implemented HS4 a couple of years ago, Rich said they were moving to an agile model where they would release small updates/fixes on a cyclical basis (it might have been once a month). That lasted... for a short time, until the train went off the rails again. And yes, I am well aware there were personal issues ongoing with HST personnel at the time.

The point is that never returned. Even before I was an actual HS user, I monitored these forums for years prior to that. Rich's heart is in the right place, but there is simply no consistent discipline in the execution of the business from the customers' viewpoint. A subscription model implies updates and maintenance on a predictable and cyclic basis, just like the payment being received.

I pay for a subscription to Quicken for my money management and reporting, I gladly pay that because a) my wealth management is extremely important to me, so the tool/subscription is worth it, and b) they produce updates and fixes on a regular basis, sometimes 2 to 3 times a month depending on the issues.

If HST was to guarantee some kind of consistency, then I would gladly give them more money. But realistically, I don't see that happening based on past behavioral patterns.

[Bigstevep]

Why not just just create (for example) a HS4 Pro+ version of the software that they could charge extra for at implementation of new installs and allow an upgrade for current HS4 users? Charge for example $25 a year to run HS4 Pro+ which the can check the license is current (which they already do anyway) and if it's not licensed for HS4 Pro+ they could just disable the added features HS4 Pro+ has added verses HS4 Standard or HS4 Pro. They could even just have an HS4 Standard+ version for those that don't care about the added software HS4Touch, Z-Flash Software and Z-Seer Software which I'm one of them. If the annual fee for + runs out and isn't renewed then the install remains the way it is but no more + upgrades. Bug fixes should be bug fixes wheather subscription is current or not. So say you are a + user and your subscription ran until December 31st the you should be able to install + HS4 installs until then after that then no luck but if you really want a newer install without plus then you could install a non-+ version but you would lose everything + had it it.

Basically I would see HS4 Standard+ or HS4 Pro+ users as early adopters/testors/advisors of both versions. Then when the HST is roadmapping and wants to develop or implement new tools/built-ins etc. they should have the + users give the input on what's needed and what can be improved and how the changes/additions worked.

Bug fixes would be for all versions and if improvements benefit the community installs then everyone gets them if that's what HST decides. If people in the community want to follow what's going on in the + community then in the forum they can view the + communities threads to find out. If non-+ users see something they can't live without they can upgrade to + and buy the + upgrade.

If it worked anything similar to what I have described then they can count on me as the first + user!

[alphatech]

I would not mind paying for the yearly they may increase the number of people there to better support the product .

Just a small note on quicken, when everything was working great and I could do everything thru them, banks changed the way I can pay bills, it is becoming almost useless to me, I had to mention that.

Sent from my SM-S906U using Tapatalk

[TC1]

Just a small note on quicken, when everything was working great and I could do everything thru them, banks changed the way I can pay bills, it is becoming almost useless to me, I had to mention that.

Sent from my SM-S906U using Tapatalk

That was indeed a problem when the financial industry was transitioning between direct connect and web connect for transactional exchanges. Many angry customers (including myself) who could no longer get their financial information automatically for at least several weeks. Quicken worked with the various institutions and resolved almost all the problems. That's why the subscription is worth it, they actually acknowledged the problems to customers and worked towards resolution.

[mulu]

I work for a company that provides enterprise data center infrastructure performance monitoring, as in, we help DC managers find and correct pinch points within their infrastructure. Our old business model was to sell a customer a solution along with a multi-year maintenance plan. We have moved to a subscription model that allows the customer to pay for maintenance yearly, as a subscription. I wonder if HST should consider such a model?

ARR, or Annual Recurring Revenue, is the key objective here.

Thoughts?

My top 3 reasons for selecting HS (I came from Vera) are (not listed by priority):

• No dependency on the internet
• HSTouch Designer, i.e. full customization of screens
• No monthly/yearly fees

One problem with the monthly/yearly fees is that if a company goes out of business the program might break down. The program also has to "call home" to make sure you paid. I know more and more companies move to this kind of concept but I VERY VERY VERY much dislike this especially for essential stuff like HS where I invested 100s of hours. With the current concept my system will still work even if HS goes out of business tomorrow. This was a MAJOR decision point for me.

Note that if kenm business goes belly-up the companies that used his product will still work. They just don't get the analysis anymore. In case of HS your whole home automation system might stop working.

[racerfern]

I'm not so sure the owner(s) of HS have the financial ability, manpower or willpower to go to a subscription format. More income, but certainly more effort and commitment needed.

They certainly can't just keep popping out betas under a subscription format, all the PIs would have to be finalized as opposed to betas. There's a lot demand from consumers whereas now it's not much above a shareware level in that we're chomping at the bit for the next beta release from HS and the plug-ins.

[jon00]

With the current concept my system will still work even if HS goes out of business tomorrow.

Are you sure about that? Homeseer needs access to the HST License servers to operate.

[mulu]

Are you sure about that? Homeseer needs access to the HST License servers to operate.

Yeah, reading through this email chain I started scratching my head based on Bigstevep comment "the can check the license is current (which they already do anyway)". So are you saying that if HS goes out of business my whole home automation setup will break down? I thought that's only an issue with myhs but now I am getting concerned. macromark is that true?

[kenm]

Great stuff. Keep the comments coming.

[randy]

Jon probably knows more about it than I do. I have always believed HS will run without an internet connection. I have run a test installation without internet for a week or so and it ran fine. I know the license servers need to be contacted when any PI or HS is unregistered, but the registrations are stored locally and don’t seem to ever be checked once registered. A full directory copy of HS can be moved to any machine anywhere, spun up and it remains registered.

Maybe Jon could elaborate on when HS has to phone home.

[shennecke]

I have worked for a couple of major industrial automation software companies along with using another home automation software platform. These were all based on buying a current Rev #. Support is provided on that rev #, say Rev 1 until Rev 2 comes out. You have the choice to stay at Rev 1, or pay an upgrade fee to go to Rev 2 Only the current Rev receives tech support.

[TC1]

The obvious dependency on MyHS is some third-party integrations that require it for a proxy. For example, Alexa and Google voice-recognition would stop working.
People who rely on MyHS for remote access to their HS system would have to implement their own proxy or VPN solution.

I do know that HS does phone home to MyHS on a cyclic basis and I believe at startup, I do not know whether a prolonged disconnection to it would prevent it from operating locally.