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Introduction

This guide provides a structured approach to understanding and implementing the self-hosting pricing model for NoCode-X. It explains the reasoning behind the pricing model, its core principles, and how to apply it effectively. The goal is to ensure fairness, scalability, and transparency while reducing costs for customers by 8x compared to traditional SaaS offerings.

Go to Key Assumptions
Go to Core Principles of the Pricing Model
Go to Proposed Pricing Model
Go to Example Scenarios
Go to Advantages of the Model

Key Assumptions

  1. Core Cost Benchmark: SaaS pricing for cores is €24 per 1,000 CPU minutes (approximately €0.024 per CPU minute).
  2. Memory Cost Benchmark: SaaS pricing for memory is €5 per 5GB per month (approximately €1 per GB per month).
  3. Target Cost Reduction: The model aims to reduce costs by 8x for the average customer compared to SaaS pricing.
  4. Cloud Dependency: While updates and authentication are tied to the cloud, resource usage falls under the self-hosted model. Customers take on operational responsibilities, and cloud subscription is not required for normal operations.

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Core Principles of the Pricing Model

  1. Scalability: Start with minimal resources and scale as needed.
  2. Fairness: Pay only for provisioned resources, avoiding overpayment for unused capacity.
  3. Transparency: Simple, predictable pricing for cores and memory with no hidden fees.
  4. Flexibility: Adjust provisioned resources during the year to match needs.
  5. Accessibility: Affordable entry-level pricing for startups, with predictable scaling for enterprises.

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Proposed Pricing Model: Provisioned Cores and Memory

1. Base License Fee​

  • A flat annual or monthly fee to access the NoCode-X platform, updates, and support.
  • Covers platform maintenance, security updates, and cloud authentication.
  • Example: €50/month for startups, with higher tiers for enterprises based on additional features or support.

2. Resource-Based Pricing​

Customers are charged based on provisioned resources:

  • Provisioned Cores:
    • €2 per 1,000 CPU minutes (8x reduction from SaaS pricing of €24 per 1,000 CPU minutes).
    • Example: €20 per core per month for 10,000 CPU minutes.
  • Provisioned Memory:
    • €0.10 per GB per month (8x reduction from SaaS pricing of €1 per GB per month).
    • Example: €1 per 10GB of memory per month.

Note: Bandwidth and storage are excluded to simplify the model for customers.

3. Capacity-Based Bundles​

For predictable workloads, discounted bundles are available:

  • Example Bundles:
    • 1 Core (10,000 CPU minutes) + 10GB Memory: €200/year.
    • 5 Cores (50,000 CPU minutes) + 50GB Memory: €900/year.
    • 10 Cores (100,000 CPU minutes) + 100GB Memory: €1,700/year.
  • Bundles provide a cost advantage compared to pay-as-you-go pricing.

4. Flexible Scaling​

  • Customers can increase provisioned cores or memory during the year, with prorated charges.
  • Example: Adding 1 core mid-year costs €100 for the remaining 6 months.

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Example Scenarios

Startup Scenario​

  • Usage: 1 core (10,000 CPU minutes) + 10GB memory.
  • Cost: €50 base fee + €200/year for resources = €250/year (€20.83/month).

Growing Business Scenario​

  • Usage: 5 cores (50,000 CPU minutes) + 50GB memory.
  • Cost: €100 base fee + €900/year for resources = €1,000/year (€83.33/month).

Enterprise Scenario​

  • Usage: 10 cores (100,000 CPU minutes) + 100GB memory.
  • Cost: €500 base fee + €1,700/year for resources = €2,200/year (€183.33/month).

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Advantages of the Model

  1. Cost Reduction: Achieves significant savings by reducing core and memory costs by 8x compared to SaaS.
  2. Predictability: Annual pricing for provisioned resources ensures predictable costs, with flexibility to scale as needed.
  3. Fairness: Customers only pay for the resources they provision, avoiding overpayment for unused capacity.
  4. Accessibility: Affordable entry-level pricing makes the platform accessible to startups and small businesses.
  5. Scalability: Capacity-based bundles and flexible scaling options support businesses as they grow.

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