New PaperCut license model

New PaperCut licence model for 2019

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From time to time PaperCut like to shake things up a bit… It started with PaperCut 19.0 and continues with their new PaperCut licence model complete with simplified Pricing structure. It’s been a major quality of life improvement for the sales guys in the channel.

“It was great to learn that PaperCut MF was going to become even easier to sell! By moving away from a user based licence plus the embedded cost pricing model to a simplified per device including unlimited user licensing, site servers, advanced clients and desktop widgets means that PaperCut MF is now even simpler for our partners to quote their customers which has to be fantastic news.”

Stephen Hart, Sales Director

Why did PaperCut change their licence model?

We talk to resellers every day who have to price up multiple solutions, PaperCut did have some extra bits that you needed to understand when pricing it up that could have slowed down the quote process. It wasn’t impossible, but it was essential to understand what was already included within the main product and what needed to be added on. Like with a lot of things, it could have been easier… You asked, PaperCut listened.

So, what has happened?

PaperCut has made their pricing model highly flexible and easier to understand than before; it will enable you to quickly price up new deals as well as provide alignment with current deals; do you need 3 years 2 months support? No problem!

And the important bit is, we remain competitive across education, local government, and commercial sectors.

The too long won’t read it all version:

• There’s no longer user and device-based pricing, it is now just device based
• No cost for site servers – all you can eat
• People who were confused by PUA; you now have Maintenance and Support (M&S)
• No more education, professional, or commercial options; no more wondering where NHS organisations and charities sit – all of that confusion is cleared up
• All the extra add-ons that were rarely used have all been grouped together

Now you have stellar software that’s backed up by an easy to use SKU based price list; supported by a team of experts. Could you ask for more? We want you to grow, this should help in that journey.

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The PaperCut licence model details

Bye users!

You asked for it; unlimited users included in all base licences, plus, unlimited advanced clients desktop widgets and site servers.

Customers will be able to scale without receiving a PaperCut Admin UI warning them about going over their licence limits. You won’t need to worry about licence exceptions or support calls about going over the user limit and being locked out.

Just to be clear – unlimited users, you asked for it, you now have it.

Any small print?

Yes, the SMB bundle is still locked to 100-users and 5-embedded licences.

PUA has gone, say hello to M&S

No, not Marks & Spencers, M&S is Maintenance & Support! It replaces the premium upgrade assurance (PUA) model. M&S has been adopted as it is a widely-used term across multiple industries; it avoids people asking what PUA is, and let’s face it, everyone asked!

Also, as a nice bonus, you now receive a grace period with M&S, neat huh? M&S will start on the day of purchase like normal but end on the last day of the following month. For example:

If you buy 1-year M&S on the 1st of March 2019 it ends on the 30th of April 2020.

What about PaperCut licence renewals?

If M&S is still active it will renew from the current expiry date.

And… one of our favourite things – If M&S has expired then the M&S will kick start from the date of the new order. Can we all agree that is good stuff?

As one last M&S treat, you can, if needed, purchase M&S in months (assuming you already have a one year licence). So, if you need 3 years 7 months to tie it into another contract term, you can.

Site Server changes

PaperCut now comes with unlimited site servers. Have you ever had me try to explain to you in the past that you get one site server with a base licence and add 5 more for free (which means you actually have 6 site servers for free?) Yeah, I often confused myself!

No more confusion! There is no charge for site servers; use as many as you like, go wild!

It’s great because it removes barriers when helping with the solution architecture, never worry about site server licences again.

There is no penalty for helping a customer grow! It’s all included in the price.

PaperCut licence model types

Where once there was three, now stand two…

1. Commercial – this covers the old “professional” licence option as well as all commercial customers
2. Education and local government – now covers charities, teaching hospitals, non-profits, NHS sites, etc.

This removes any doubt as to what type of licence to use. Under the old system, Education and Government pricing was sometimes used incorrectly much to the frustration of our dealers. The good news is the SKU count has been kept to the minimum.

New licence example:

After ordering, you will get a PaperCut licence as normal but you will notice some small changes, it will look something like this:

As you can see, the format is much the same but the unlimited items have now all been added in. The licence will display the devices you have purchased (in this example 4 x Sharp) and the M&S end date.

Anything else?

Payment gateways are now grouped – the groups are based on price, in groups 1, 2 and 3. Group one has the popular option, we expect this to be used more often than two and three.

Job Ticketing options – are listed under Add-ons

Single Function Printer (SFP) licences – are available for devices that can take embedded but are just printers.

Example quotes

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So, to recap – every new licence is now a device based licence that will come with unlimited users (excluding SMB orders).

What about old/legacy licences?

As you now know, any new licence – apart from an SMB licence – will come with unlimited users (that is the last time I write that, sorry).

Any legacy licence (pre v19.0) can have unlimited users by doing one of the following three things:

1. Renew the M&S (if it has expired) or extend the M&S term
2. Add an embedded licence
3. Buy the unlimited users upgrade (you can find that under Add-ons in the quote tool)

The cheapest option might be to add a new embedded licence, depending on how many the customer has. Either way, getting unlimited users on a legacy licence isn’t a challenge.

Is the pricing for embedded licences still tiered?

It is indeed, there are simple to understand bulk price tiers as follows: 1, 10, 25, 50, 100, 200, and 500+.

Bulk Embedded Pricing Tier	Number of Embedded Devices
1+	1 to 9
10+	10 to 24
25+	25 to 49
50+	50 to 99
100+	100 to 199
200+	200 to 499
500+	500 and over

There is a pricing sweet spot for some of those tiers, be kind to Sian and she may tell you (hint, just talk about her prize-winning Pugs!) The idea is to cost less the higher you go, it should allow you to target more of those 500+ device deals with confidence.

If I buy 12 of one type and 82 of another, are they all at the 50+ tier?

No, if you buy 12 of one and 82 of another then you get the 12 at the 10+ rate and the 82 at the 50+ rate.

That being said, it does group together embedded brackets for a renewal.

With the SKU based system, you will see more line items with a quote for a renewal.

Let’s say your licence had:

• 4 x Ricoh
• 4 x Kyocera
• 20 x Sharp
• 17 x Toshiba
• 100 x HP

(one confused customer huh!)

The renewal would group together the 4 Ricoh and 4 Kyocera devices into a 1+ renewal so you have 8 x +1 renewals listed as a SKU. The 20 Sharp and 17 Toshiba would be grouped together so you would have 37 x 10+ renewals listed as a SKU; and, the 100 HP would be their own SKU line item.
Clear as mud?

Ok, another example. Let’s say you have the following devices on a licence already:

• 510 x Kyocera
• 70 x Konica
• 17 x Brother
• 4 x Lexmark
• 4 x Xerox
• Plus you are going to:

And, you are going to add 50 more Kyocera (just because you can); you also plan to renew the support on the licence for 3 years (the customer loves PaperCut!)

You will get the following SKU’s:

PCMF-UK01EGMFKY7	PaperCut MF – MFD Embedded – Kyocera, Edu/Gov, per device, 500+ total	50
PCMF-UK01MSEGMF4-3Y	PaperCut MF – MFD Embedded – Edu/Gov, per device, 50+ total, 3Y maint/support	70
PCMF-UK01MSEGMF7-3Y	PaperCut MF – MFD Embedded – Edu/Gov, per device, 500+ total, 3Y maint/support	560
PCMF-UK01MSEGMF1-3Y	PaperCut MF – MFD Embedded – Edu/Gov, per device, 1+ total, 3Y maint/support	8
PCMF-UK01MSEGMF2-3Y	PaperCut MF – MFD Embedded – Edu/Gov, per device, 10+ total, 3Y maint/support	17

Breaking all of that down:

1. The first line item is the 50 new devices going in. As they already have 500 they are at the 500+ rate
2. The second line item is the renewal for the 70 Konica devices at the 50+ rate
3. The third line item is the renewal for all 560 Kyocera devices (the 510 original and the 50 new devices at the 500+ rate)
4. The fourth line is the renewal for the 4 Lexmark and 4 Xerox devices (you see it has QTY as 8 at the 1+ rate)
5. The fifth line is renewing the 17 Brother devices (they are at the 10+ rate)

The odds and ends of the new system:

How do upgrades from NG to MF work?

Moving from NG to MF is a popular option, and now comes with a flat percentage off of the MF order.

How will swapping embedded machines work?

If you need to move from one platform to another due to a change of machines; there is now a flat fee per swapped device licence. Simply add the exchange SKU in the quote tool and you’re good to go.

How are library’s priced?

Good question! Again, it will have unlimited users but is now priced per branch.

Do Hospitals get Government/Education pricing?

Yes, normally if they have teaching facilities.

Are competitive upgrade discounts still available?

Yes – email sales@selectec.com for more info.

My customer doesn’t know what devices they will have, can I buy a user only version of MF?

Yes, if needed but we don’t expect it to be a popular option. But, as always we try and cover all the bases. So that you have the following options for a user-priced version of PaperCut MF.

1. Commercial “User” Tiers – Up to 100, Up to 400, Up to 1000. Anything over 1000 is done as a custom quote.
2. Education/Gov “User” Tiers – Up to 500, up to 1500, Up to 5000, anything over 5000 is done as a custom quote.

Is there still a 10% penalty for renewing a licence that has expired over 6 months ago? Or a minimum support cost?

Nope, simple!

Need a new PaperCut licence model quote?

Just pick the number of embedded machines, the number of years support you require and 99% of the time that is it. If you need any Add-ons then add them at the same time.

Further reading:

Why not check out our FAQs about the new PaperCut Licensing system?