Skip to main content

Posts

Showing posts from August, 2021

Opinion: NewRelic is now free for all, but can it stop Datadog?

In August 2020, NewRelic (NEWR) did a huge clean-up on its pricing. The previous was primarily a contract determined by the number of hosts and their runtime ( example , but thankfully they didn't equate containers as hosts), and bundled with a support package.  New pricing no longer looks at hosts but # of users and GB of ingestion, which make up its subscription + usage (also referred to as "Pay as You Go"). Designated support package is only available for the highest tier. NewRelic however doesn't (or hasn't yet started to) report these 3 revenue sources (subscription, Pay as You Go, support) separately. The following sums up my understanding of its implications: Stopping the churn. Retaining as many users as possible on its free tier, as they lose appetite immediately when there's a commitment. Atlassian (TEAM) is now using a similar strategy -- "free for small teams". Incurring short-term drop in ARR, as they expected too. Also makes it a slight