Changes to Flexera's Business Model

[AustinG]

Happy Wednesday Flexera Community! 

We recently sent a letter to all our customers about upcoming changes to our business model beginning January 1st, 2022. We’ve included a copy of this letter below for your reference.   

Valued Flexera Customer,   

I’m pleased to inform you that Flexera is simplifying the way our customers conduct business with us. 

Effective January 1, 2022, all Flexera software solutions will be sold as subscription licensing only. We will no longer offer a potentially confusing mix of perpetual and subscription licensing across our solution portfolio. 

While this will change the way our solutions are offered to your organization, there are many things that will not change: 

• We will continue our unwavering commitment to our on-premises customers. In fact, as our offerings expand, our promise to our on-premises customers becomes even more enduring. 
• We will continue to offer, support and provide sustained innovation for our market-leading solutions that run in the data center, including FlexNet Manager, Data Platform and App Broker. 
• If you’re already a customer of Flexera’s SaaS-delivered solutions—including Flexera One and Optima—there will be no change to your pricing/packaging options. 

Increased efficiency, expanded options 

With this transition to a subscription pricing model, Flexera is aligning with the shift that has taken place in the market. The new business model enables you to efficiently take advantage of all our current and future product offerings—including those delivered through Flexera One. 

This change to our pricing model will offer many benefits, including: 

• You now have more flexible options to begin using our technology value optimization solutions at a lower point-of-entry cost. 

• You now can more rapidly and efficiently purchase, implement and scale our latest Flexera One offerings—including IT Visibility, SaaS Management and Cloud Cost Optimization—improving the ROI and putting the power of our solutions into your users’ hands more quickly. 
• You now can spread annual payments over a multi-year subscription term (instead of paying in full upfront when buying perpetual licenses) to give you greater budget flexibility. And with our new options for migrating to Flexera One, you can also spread payments for the entire deal. 

Migration incentive program for on-premises customers 

As part of this update, we’re unveiling incentives that will make it easy for our on-premises customers to transition to Flexera One. This voluntary conversion program provides you with additional solution offerings if you elect to migrate to Flexera One. For most offerings, the incentive covers the cost of the migration so you can transition to our SaaS platform with minimal cost and effort. 

We’ll be rolling out these incentives over the next few months, supporting our ever-expanding set of technology value optimization capabilities across on-premises, SaaS and cloud. Look for more details in the weeks to come—but if you’re interested in moving to Flexera One on a subscription basis now, please contact your Flexera account team. 

All of us at Flexera are fully committed to your success 

I know that change can be challenging and may require time to adjust, so we’ll continue the sale of perpetual licenses through January 1, 2022. After that date, our software—including new and add-on purchases made directly from Flexera or through our partners—will be available only through a subscription. 

Also, if you’ve already purchased perpetual licenses, you’re not required to convert those licenses to subscription. We will continue to renew support and maintenance on these perpetual licenses. If, however, you’d like to convert those licenses to subscription, please contact your Flexera account team. 

We thank you for your continued trust and your valuable partnership, and we look forward to working with you even more efficiently and effectively through 2022 and beyond. 

Sincerely,   

David Zwick  

CFO   

Flexera Software LLC