By Wyatt Queener, Vice President, Strategy
July was a month full of big announcements for Q partner and WCM leader, Sitecore. While Sitecore continues to follow a flexible size-based model for its CMS solution, the company announced changes to its North American pricing model on July 1. Sitecore also announced the launch of the App Center, an online marketplace of on-demand applications, services, and integration solutions developed for Sitecore’s Customer Engagement Platform. According to Sitecore, the App Center will serve as an “ecosystem of pluggable cloud applications [that] will include email marketing, social media monitoring, Windows Azure hosting, Search Engine Optimization (SEO), translation and web compliance.” These recent changes align with the company’s ongoing push to offer more robust analytic, marketing and customer engagement capabilities in addition to content management, raising the bar in the web content management (WCM) space.
A couple of highlights for the pricing changes:
OMS Gets a Makeover. One of Sitecore’s most buzzed about offerings, the Online Marketing Suite has been reborn as the Digital Marketing System (DMS). The new DMS offers a host of new and enhanced features, including a completely redesigned analytics API and optimized reporting. Additionally, Sitecore’s E-mail Campaign Manager has been bundled into the product.
While it was previously bundled with the Sitecore CMS, the new and improved DMS is now being packaged as standalone software with its own separate license. However, with a price only slightly higher than 30% the CMS base price, this service remains an excellent value for businesses seeking to integrate and consolidate content management, marketing campaign and analytics tools.
Sitecore’s stock is rising. It’s no secret that Sitecore offers a lot of power at a reasonable cost. Its robust marketing and analytics tools are critical points of differentiation from its competitors and well-regarded third-parties have taken notice. But despite all of this, as WCM license fees continue to rise, Sitecore’s lower price point has occasionally sent the inaccurate message that it was a lower quality offering. In response, Sitecore elected to increase the price of its core CMS offering by approximately 15%.
While a price increase is typically perceived as a negative, current and potential Sitecore customers can take comfort in the fact that Sitecore has put so much thought into its long-term strategy to provide best-in-class WCM services to enterprise-level businesses.
This entry was posted on Wednesday, August 3rd, 2011 at 2:05 pm and is filed under Content Management Systems (CMS). You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
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