Previously, Network Box USA customers paid an entry price that bought them the Network Box unified threat management appliance, along with license and service. They would then have to pay a yearly renewal fee amounting to roughly 50% of the initial price.
Under the new model, customers will pay a flat fee for the managed service and will sign a three-year contract guaranteeing that the annual cost will not change. The contract includes replacement of hardware as it becomes obsolete.
Network Box USA has found that customers prefer not to pay a higher price up front and a lower recurring fee, according to Randy Hays, director of sales at the company, explaining why the company thinks that the new pricing scheme will benefit customers.
He also said that it will make it easier for Network Box to support its clients. “We’ve found that clients have resisted purchasing a new unit, so we’d end up having to support their old one,” Hays said. “It’s a much easier solution all around for us to be responsible for hardware upgrades and just replace an existing UTM without having to charge any extra fee.”
There will be a termination fee for those that wish to exit their contract early, the company admitted, but said that it would be normal, compared to competitors who require customers to buy themselves out of a contract at the full price.