PagerDuty Pricing Changes

UPDATE: The new pricing is now live! Please don’t hesitate to get in touch with us if you have any issues signing up under the new system or upgrading from an older plan.

We’d like to announce we are making changes to our pricing for PagerDuty: we’re simplifying the pricing scheme, reducing overage alert charges, and increasing the price per user. Traditionally, pricing changes have been a very touchy subject for SaaS companies. We would like to do the right thing for all of our customers, so we are automatically grandfathering all existing accounts. This means if you’re a PagerDuty customer, you won’t be subject to any potential price increases.

Why are you changing your prices?

When we first launched PagerDuty, we based our pricing model on the 37signals classic tiered model where prices double as you go up the tiers but you also get more than double the stuff. This pricing model has served us well in the early days. More recently, in the last year, we’ve run into several limitations:

  • Smaller IT ops teams are paying for a larger plan than what they need on a user basis, in order to get more alerts.
  • We have lots of companies with well over 25 users. Since our max plan, the X-Large, only supports 25 users, we find ourselves spending a lot of time doing custom billing for customers.
  • Our current pricing has expensive overage alerts on most of the plans ($0.60 each). If one of our customers had a bad month and used a lot of alerts, they’d end up with a large bill from us, which sucks.

So, we’re making the switch to a per user per month pricing model. The main goal for the new pricing is simplicity: no more pricing tiers, user limits or alert limits; you can add as many users as you need. We’ve also eliminated all overage alert charges for US/Canada and reduced the price for overages in other countries.

What is the new pricing?

We’re scrapping the tiered plans and switching to per user per month simple pricing:

  • $18 per user per month

Every user gets:

  • UNLIMITED phone & SMS alerts to US and Canada
  • 20 phone & SMS alerts per user per month to all other supported countries
  • UNLIMITED email alerts

(Additional international phone & SMS alerts are $0.35 each)

The good news: Unlimited alerting for US/Canada, which means no more overage charges ever. For international accounts, we’re including 20 phone & SMS alerts per user per month. These alerts pool together and can be used by any user in the account. We’ve also reduced the price for international overages, should you need more.

The not-so-good news: A higher per user per month price than the old pricing.

Startups and small teams: We also offer a Starter plan for bootstrap companies who need our solution. We love startups, so reach out to us at startup@pagerduty.com and we’ll figure out how we can work together.

When will the changes happen?

We’ll switch to the new pricing on May 7, 2012 (3 weeks from today).

How does this impact me?

If you’re already a paying customer: Nothing will change. All paying customers are automatically grandfathered into their current pricing plan indefinitely. That being said, after the new pricing launch date, you’ll no longer be able to switch to another one of the old plans (so, if you’re on the Large, you wouldn’t be able to upgrade to the X-Large or downgrade to the Medium after May 7). Of course, after May 7th, you’ll have the option to upgrade to the new pricing or stay on your existing plan.

If you’re currently on your 30-day trial: You should check and see if our existing plans are cheaper for your team than $18/user/month — if you use a lot of overage alerts each month, they might not be. If they are, sign up for a paid plan before May 7th and you’ll be able to keep that price forever. If you don’t, you’ll pay $18/user/month (or contact us for pricing if you’re a small team and want the Starter plan).

If you have any questions or feedback, please contact us.

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4 Responses to PagerDuty Pricing Changes

  1. ethanmiller says:

    If a team member were to be out for a month (vacation or otherwise) – will it be possible to suspend their account to avoid paying for an unused account?

    • Dave says:

       That’s not something we support right now.  Do you know of any SaaS providers who do something like that?  I’m curious what their implementation looks like.

  2. Shaun Boucher says:

    Concerning the international phone and SMS alerts, will the grandfathered accounts still be able to have unlimited (or at least to the limit of the account) alerts?

    • Dave says:

       Yes, the grandfathered plans stay essentially the same. If you’re on a plan with international calling enabled, you’ll keep the same number of international alerts under new pricing.  You won’t have unlimited domestic alerts though.

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