Effective November 1st, 2016, Keystroke will be implementing some changes to our Act! hosting rates, with renewals being effectied a month later on December 1st.
Over the last five years we've employed a flat rate pricing system for our hosting that allowed customers a lot of licensing flexibility with little or no impact on their hosting costs. Unfortunately, the unintended consequence of this system was that the smaller teams ended up paing a disproportionately higher cost per user - typically double what the larger teams often paid per user.
Needless to say, this was a formula that required tweaking, and those changes can be found HERE. Most of our hosting customers will see their renewal rates go down, but some will see an increase - generally those with larger teams.
Customers subscribing to Act! Premium Cloud are unaffected by these changes.
For us, this structural change means less overall hosting revenue, but we're hoping to make up for this with higher renewals and net new customers based on the better value proposition.
We are committed to remaining the leader in the Act! hosting market in "cost-per-user" pricing, and that will require us to make changes from time to time. This is the first such change in half a decade, but certainly overdue, and we're hoping it will be well received.
