Hi Rosmary, thanks for this post
I'd like you to explain me your math, because I've hard time to calculate the pricing you show myself
You state that
5 users FM Cloud licence = 888$ year + 5 users at 0,99€ hourly usage for 5 hours = 99€/months
So here's my equation
888/12 months + 5users*5h*0,99 = 98,75 $ / month, close enough
now let's calculate for 24 hours
888/12 months + 5users*24h*0,99 = 192,8 $ / month that's not 740$ a month
Can you explain your math ?
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I think she explained it clearly. I'm not following your math.
Hourly licensing and annual licensing are two separate programs with very different costs if calculated on an annual basis. This video is about the hourly licensing program, not the annual licensing program. The annual licensing program cost of $888 per year for five users does not figure into any calculations for hourly licensing. The annual figure appears in the video only to demonstrate how much more expensive hourly licensing can be if you do not stop your instance when you are not using it.
If you opt for hourly licensing, you pay $0.99 per hour. If you run it for 24 hours a day for 31 days a month, that's $0.99 per hour, multiplied by 24 hours per day, multiplied by 31 days per month, which equals $736.56, which is, just as Ro says in the video, "about $740 per month."
If you opt for annual licensing, then for comparison, you would need to divide $888 by 365 days per year and then by 24 hours per day, which gets you to just over $0.10 per hour, which is where I would start in order to compare annual licensing with hourly licensing.
Here's how it looks side-by-side:
Five-user license Licensed hourly Licensed annually Cost per hour $0.99 $0.10 Cost per day $23.76 $2.43 Cost per month (31 days) $736.56 $75.42 Cost per year (365 days) $8,672.40 $888.00
Some other points of reference:
- For a server running around the clock all year, an annual subscription is 90% cheaper than running an hourly subscription.
- An annual subscription saves you money after ($888/$0.99) 897 hours, or about (897/24) 37 days.
But the point of this video seems to be this: where hourly licensing makes sense at all, it makes the most sense to stop and start the instance as needed in order to realize any cost savings. If you use your instance for only five hours per day, as in the example described in the video, then stopping and starting your instance as needed brings the cost of an instance down from $23.76 per day to just $4.95 per day. You can do that for about 180 days a year before it will have been cheaper again to have bought the annual license.
Thanks Johny for you clarification.
You understood it because you're well aware of all Filemaker Cloud pricing, in other words, you understood it because you knew everything and hence you certainly don't need that video.
The reason I asked is that I think that video is just terrible. It's a perfect way to deter anybody from filemaker cloud and the filemaker company.
When I watched that video, I thought
"Man, their prices are absolutely crazy"
"WTF, they think that their pricing is bearable only if I work 5 hours a day, what are those people that only work 5 hours a day ?? How can a company create a pricing model and then tell people how 5 hours a day is cool !"
At least if they used 10 hours a day I could somewhat relates to it, but I just found that video shocking and telling people "oh it's a great product and it won't cost you much if… you don't use much"
Since I love filemaker then I tried to understand and the math behind it, it for 20 minutes 5and I think lots of peopel will not try better to understand), and frankly I didn't found on Filemaker's and Amazon's a perfect simple answer that would make sense with that video.
Part of this is the fact That I could not understand that yes the $8672 price tag for 1 year was right, and that the same time you get 10 times less cost by annual licensing. In other words I'm just shocked about a company that dares to charge for the same service 10 times more, that's theft.
if not theft, maybe is that they absolutely don't want you to go for the hourly model (maybe there's a law or something that prevents them to only propose the annula method), which I can understand, but then why on earth promoting this in a video that's focused on cost management.
So If you stumble on that video like I did, and you see a video entitled
"New FileMaker Cloud best practice video" with the description "Learn how start and stop your FileMaker Cloud instance to get most out of your software while minimizing costs", posted by mothership itself
You freaking expect that this is the absolute best way, with the most minimal cost you can achieve with the whole Filemaker cloud stuff (because they don't talk hourly model in that description nor in the title).
So the video even after I watched it 2 times, just told me that FMI wasn't in touch with reality. And I advise FMI to immediately REMOVE that video.
That video has been made by people who know the pricing by heart, for people that knows pricing by heart, with and advise as sound as when it rains things gets wets, without much thinking on its effect on the average joe.
Perhaps this video was done to be made because management told it should but only cared about it being made without caring about it's quality, so the marketing department can fill a checkbox in it's annual reporting about what they were up do.
If I were to fill that checkbox, I would have billed the checkbox : "destroy filemaker interest for anybody with a brain, and makes FMI look as a super greedy company that's out of touch with reality, whose worker only works 5 hour a day" CHECKED
If they want to do it right then :
- The math must be complete so one can with the formula calculate the cost for x hours a d ay easily.
- And show the cost with the annual model (telling that there's an annual licensing at 888$ repeaditely like she did doesn't help much)