With all the activity, ZenDesk also picked up a new round of funding. Other recent updates from the industry include SmarterTools with new release of SmartTrack 4.x, and ServiceNow CEO Fred Luddy discussing using their SaaS solutions for real time feedback & generating new best practices to recommend and use with other customers. This seems like a great idea and another benefit of SaaS based solutions.
While there could be many reasons for ZenDesk taking off, I suspect one of the strong ones is pricing. ServiceNow and SmarterTools seem at the higher end, pushing +$100 per user. Now compare that to ZenDesk at $20, makes it an easy decision for customers considering to use for the first time. Kayako also has great pricing, starting as low as $30/month.
5 comments:
Hi there,
Firstly, thanks for citing Kayako in your blog post. It is in fact this which drew us to the post to begin with.
Kayako's solutions do not total at around $100 per user per month, or cost $30 per user per month.
Our solutions start at $29.95 per month self-hosted (unlimited users and operators), and $39.95 per month for a fully managed and hosted solution (again, unlimited users). The price gets even cheaper when subscribing yearly.
Our flagship package - a fully hosted support desk and live chat service, for an unlimited amount of users and operators, can be had for $49.95 per month.
I hope this clears things up.
http://www.kayako.com/purchasing/licensing.php
http://www.kayako.com/purchasing/pricing.php
Hi Jamie,
Thanks for the note, my apologies, have made appropriate correction, :).
The Compete stats also should be discounted to reflect the appropriate audience. For example, businesses probably do not have the Compete toolbar installed, vs your Facebook crowd and other partnerships that ZenDesk has lined up are more like to have it installed.
Thanks again,
Matt
Thanks for the shout out. Zendesk and Service-now.com are breaking new ground in providing service applications via SaaS. While the general idea of what we do is similar, we are targeting different customers.
Service-now.com sells to the large enterprise IT organization. We have about 255 enterprise customers. This is low volume compared to a vendor that targets the small business. The smallest license we sell is for about 40 process users (internal IT seats).
Our pricing does start at about $1200 per user per year. Volume discounts are available.
Service-now.com annual recurring revenue was at about $21 million as of a couple of months ago. We have been cash flow positive for two years and expect to be profitable later this year.
Bottom line, SaaS is changing the service and support industry. Service-now.com and Zendesk are two great examples of this change.
Thanks for the clarification. I was thinking that was the case, but was having some difficulty finding other closer competitors.
The thing of it is there seems to be so many different new niches popping up. Even practically identical products can be going after different markets, with small changes, ie everyone has document storage or a version of it, is many times the basis of price differences, but beyond that gets into many different niches depending upon the specific application, end market, and maybe even location.
The success of companies like service-now and zendesk is a testament the fact that the SAAS model for IT Service Management Software is proving to be a great alternative to the traditional software model.
It is with this similar belief, Tingba Software Corporation is ready to launch a SAAS model for IT Service Desk or Help Desk by the end of this year. The pricing is not released but it is expected to be start around $ 30 per user. An online demo is already available on the site, I would greatly appreciate anyone to take a test drive at tingbasoft.com
Best Regards
Sam
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