Cradlepoint, the 4G LTE network solutions provider, has launched a pricing model designed to help partners move to recurring revenue.
The Boise, Idaho-based company on Tuesday announced a subscription-based pricing model and a wireless branch offering. Both are part of Cradlepoint’s “elastic edge” strategy, which aims to move away from a hardware-first mindset to giving customers benefits traditionally associated with software as a service (SaaS). Todd Krautkremer, chief marketing officer, says the elastic edge is “the confluence of LTE and wireless WAN with software-defined and cloud managed infrastructure.”
The subscriptions are tailored for branch, mobile or IoT, come in “essentials” and “advanced” packages, and can last one, three or five years.
Krautkremer says the subscription model is a major shift for Cradlepoint from being a “classical hardware manufacturer.”
“We now say, ‘Look, we don’t care what our margins are on our hardware. As long as over a long [sic] period of time the total solution we’re selling to our customers delivers compelling margins for our business, we’re good with it,” he told Channel Partners. “And what that’s freed us up to do now is price our products across all the markets we compete in much more aggressively. And that means we’re really cutting off the opening we’ve left for some of these low-end competitors [whose] only value proposition is, ‘We have cheaper hardware.'”
The NetCloud Solution Package features a new “edge” router, access point and console for branch management. Cradlepoint says the AP22 access points and AER2200 router give smaller organizations flexibility and reliability.
“NetCloud Solution Packages simplify how customers buy, deploy, manage and support an entire branch site network,” said Ian Pennell, Cradlepoint’s chief product officer. “Instead of navigating a myriad of separately priced software, hardware and support options, just two or three SKUs deliver a complete wireless branch solution with the cloud management and support customers need to be deployed and operational quickly and easily.”
Krautkremer says the company works with more than 1,500 channel partners, including carriers, MSPs and resellers. He says they are a getting a more simplified way to order and manage products for the clients, in addition to a new way to make money.
“We’re giving them a way that they can grow their recurring revenue more quickly — which we know every partner is concerned about. [It’s] moving from hardware break/fix type of revenue to …