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Coda has been getting a brain-dump of 's best practices in marketing, sales and support, including visits to the vendor's Dublin, Ireland support center to see how it executes on customer service, as well as implementing the 30-day trial sales methodology. There's also the cost of training up partners. PaaS vendors have the extra complication of having to predict variable costs that could rise as easily as fall, for example if unforeseen scalability, security or reliability issues come up that need to be resolved. Pitch it too low, and the platform loses money. Pitch the price too high, and any applications built on the platform won't be cost-effective. This of course is one of the most crucial calculations for any platform vendor, and even more so with PaaS. "We've put together a price that we believe is cost-effective for the vendor and we can be profitable." "We will have general pricing that we quote in a press release but every customer needs customized pricing to deliver their product," Benioff told me. Benioff's answer didn't confirm or deny, but I was left with the distinct impression that PaaS partners get the steep discount that Roche had implied:
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Clearly Coda isn't paying Salesforce's list price for of $50 per user per month, but to be competitive with the cost of goods Salesforce achieves for its own applications, Coda would have to be paying around $15-$18, I suggested. CODA2Go is priced at $125 per user per month. Later that day, I had a chance to verify what Roche told me with 's CEO Marc Benioff. "It is certainly cost-effective," he said, calling it "comparable" with the cost of servers and bandwidth if Coda were doing it in-house.
Coda 2 cost pro#
I'd assumed that the quid pro quo for those savings would be a higher monthly subscription cost - after all, presumably can charge a hefty premium for all that added value. At an average UK developer salary of £50k ($100k) per year, Coda has saved between $2.5 million and $5 million on the development cost. "That figure could be as high as 50," he added, explaining that it's difficult to quantify the exact figure with no direct experience of what it takes to develop an on-demand infrastructure. "We've saved at least two years in elapsed time and at least 25 man-years of development time," he said. That time saved translates into millions saved on development costs. The platform came with all that infrastructure ready-built, along with the functional capabilities and a sufficiently flexible development environment to meet Coda's needs. "But if we wanted to do a proper multitenant application that was scalable, we had no choice but to write it from the ground up," he explained. It looked at all the options, including " ASP-ing" an existing product. Coda decided in 2007 that the time was right to prepare a SaaS offering.
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Time-to-market was the crucial factor, Roche (pictured right) told me. Why does a company with a 30-year history of writing finance applications and 2,400 customers - including well-known brands such as Ikea, Avis, Unilever and HSBC - entrust its on-demand future to a new, untested platform?.
Coda 2 cost software#
I had the opportunity to talk money last week with Jeremy Roche, CEO of CODA, the venerable UK-based business software vendor that has become the poster child for 's platform ambitions after the release at DreamForce Europe of its new on-demand financials application, built and delivered entirely on. Ukrainian developers share stories from the war zone The best Wi-Fi router for your home office 3G shutdown is underway: Check your devices now