Page 17 - Citrix Cloud Services – Pricing and Process (Module 9)

Citrix Cloud Pricing

• Current design for perpetual offerings
PROBLEM • Current Suggested Retail Prices (SRPs) are very high to accommodate various discount programs and don’t necessarily reflect a good
• Legacy discount programs do not align with cloud cost model

market price
• Overselling a customer to the next ELA level for a better discount and frequent discretionary discount requests
• Certain increases in volume actually reduce bookings while increasing Cost of Goods Sold (COGS)
• Commercial/Public licensing (ELA) program structure creates step-down points where we deliver more product for less bookings

OPPORTUNITY • Align with subscription best practices

• Maximize sustainable annual reccuring revenue (ARR)
• Simplify pricing model to enable customers to easily land and expand at their pace
• Balance between deal size and adoption rates to minimum churn
• Strengthen relationships between bookings, pricing and quantity

SOLUTION • Move to a simpler tiered pricing model
• Align with framework designed for subscription offerings
• Define a price PER unit within a range for each cloud service offerings
• Enable customers to easily land and expand at their pace
• Eliminate step-down points, avoiding situations where you are selling more, but actually taking in less revenue (like in the all units model)

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