After more than 25 years of keeping the pricing largely unchanged and affordable for all types of businesses, Zoho today announced a new pricing structure for all the software products. The prices of Zoho products will increase by roughly 15% across all forms of purchases and all types of contracts. The pricing change will take place from April 5, 2021 for new customers and January 17, 2022 for existing customers.
Why Zoho Is Increasing Products’ Pricing?
Zoho offers tons of software products for businesses of all shapes and sizes. Its products can be categorized into the following groups:
1. Sales & Marketing
2. Email & Collaboration
3. Business Process
4. Finance & Invoice
5. IT & Help Desk
6. Human Resources
Zoho has built each product keeping the user in mind. Currently, Zoho empowers 50 million users across 180 countries in all industry verticals. The company places importance on providing outstanding customer value and satisfaction. Zoho is continuously updating the product features and functionalities.
Over the years, Zoho has added numerous enhancements to each product and new applications while keeping the pricing affordable for all kinds of customers, not just large enterprises. The company continuously upgrades and refines its products without passing the cost to the customers. Democratization of software – this is what Zoho believes in. Zoho also takes away the burden of managing and monitoring software security, maintenance, and upgrades from users and onto itself. Zoho has always kept its pricing structure transparent and never forced customers into multi-year contracts.
Zoho’s revenue is entirely based on the cash flow it generates from software subscription fees customers pay to it. The company never looks for other sources of revenue. Since Zoho follows a stringent policy to safeguard users’ data privacy, it never had any advertising revenue stream.
Zoho has committed itself to continuously improve its services for customers. Now the company is planning to make huge investments in its global infrastructure. Zoho plans to add more data centers and facilities in the 180 countries that it serves.
Zoho has added four global data centers since 2018 and is working on building local capabilities within different operating regions. The company needs to make even larger investments in the research and development process so that it can improve your experience with Zoho products even further.
Zoho Pricing Change – What It Means for You
Zoho has always kept its pricing and plans transparent and clear. There are no hidden fees, no multi-year contracts, no catches, and no clauses. Zoho never raised prices in the last 25 years since 1996. The company wisely spends customers’ money on product enhancements, while keeping its costs tight.
Zoho works hard and tries to increase its productivity, rather than passing these expenses to customers through price increments. With input costs increasing quickly and new plans for data centers underway, Zoho is introducing new pricing plans for all products.
Despite increasing the prices, Zoho products will still be the most affordable product in the market, with full of features, capabilities, security, and privacy.
Zoho Pricing Change – What Changed for Existing and New Customers
All existing customers (that is, customers who have signed up or paid subscriptions before April 5, 2021, and completed their product purchase before April 30, 2021) will pay 15% more on their current invoice (including licenses, support, add-ons, APIs, etc.) from January 17, 2022. This means their invoice amount will increase by a flat 15% from next year. Zoho is giving existing customers almost 10 months’ notice for the price change. Customers will get enough time to adapt to the new pricing plans. Existing customers can plan their spending for this increase in the 10-month time period. Zoho will send in-app banner notifications to existing customers starting April 5 when they log in.
The new Zoho pricing will be applicable for all new signups, starting April 5, 2021. Check the price sheet below to know the new pricing of all Zoho products.
Now let’s get to the details on the price increase:
If you’d like to know more about how to implement Zoho products, please get in touch with our Zoho Partner representative at (845) 221-3800 or request us online.