And why predictable pricing matters

The convenience and many benefits of software-as-a-service (SaaS) solutions are clear, such as increased productivity, collaboration, and flexibility. However, there are a few pitfalls in their adoption that can really sour a buying experience. Perhaps topping this list is the frustration of having to buy software and figure out exactly what’s included — and what isn’t. 

Since pricing is often a key factor that frustrates software buyers, let’s explore common SaaS pricing issues and how Keepit addresses them with a transparent buying process through predictable pricing.

The current reality of buying SaaS solutions

Buying SaaS solutions is often marketed as easy and straightforward, but in practice, it can be more complex than it initially seems, particularly when it comes to understanding the full cost and the features included in a package.

The reality is that for many SaaS solutions, figuring out their pricing seems to be as complex as the software itself (or maybe even more complicated). These pricing challenges can be a significant barrier for businesses trying to make informed decisions about the software they need and how to budget for it. There’s a number of variables making pricing difficult, such as hidden costs, scalability, and feature tiers which often exclude key features you need.

But why is it that complicated pricing is something those buying software deal with so often? Perhaps it’s partly because some companies, eager to capitalize on the growing demand for cloud-based solutions, offer pricing models that seem appealing at first look to get the buyer hooked on their service due to a low sticker price, only to later learn about the true cost of the solution.

However, once buyers adopt a solution, start using it, and then dig deeper, they often encounter hidden fees, unpredictable runaway costs (particularly relevant on services that bill based on data storage and transfer), or missing features from what was sold to them in the sales process and now doesn’t fulfill their needs without significant add-ons. What this amounts to is frustration, mistrust, and dissatisfaction.

And, once a buyer is already in the ecosystem and “hooked,” the sunk-cost fallacy may kick in — whereby a person becomes reluctant to change or replace a service because they have invested heavily in it, even when it’s clear that replacing it would be more beneficial than sticking with it.

Predictable pricing emerges as a welcomed respite to these issues by offering transparency and stability in an otherwise convoluted market, ensuring buyers get exactly what they need, expect, and pay for. But first, let’s look into some of the common issues of SaaS pricing and why it has become a prevalent problem.

Common challenges in SaaS pricing

Confusing offerings

One of the most significant challenges buyers face is deciphering what’s actually included in the software packages they purchase. SaaS providers often bundle features in ways that can be difficult to understand, leaving customers unsure of whether they’re getting the solution they truly need.

This confusion can lead to situations where buyers think they’re buying a comprehensive solution, only to discover later that essential features are either missing or require additional purchases. This not only wastes time and resources but also erodes trust between the buyer and the provider.

For many data protection solutions, they typically add rehydration fees for different tiers of data storage that lead to extra fees in a recovery scenario, as well as the time needed to rehydrate said data. This makes recoveries expensive and affects performance.

Hidden fees and extra costs

Hidden fees are another major pain point in SaaS pricing. Companies often present a base price that seems reasonable, only to tack on extra costs as customers start using the software. A common scenario involves adding users or accessing additional data storage (for gigabit-based storage models), which can suddenly and unpredictably inflate costs far beyond what was initially budgeted.

For example, rehydration fees — charges for accessing archived data — are often not clearly communicated upfront. Similarly, different tiers of data storage can lead to unexpected fees during recovery scenarios, where the need for quick data retrieval makes these costs unavoidable. These surprise expenses not only strain budgets but also impact the overall performance and reliability of the software.

Unpredictable pricing models

Consumption-based pricing models, like those used by AWS, introduce a different kind of challenge. While they offer flexibility, they also create significant uncertainty. Predicting consumption can be incredibly difficult, especially as business needs shift. This unpredictability often results in companies either overestimating their needs and overspending or underestimating and facing unexpected additional costs. The lack of a clear, fixed cost structure makes it hard for businesses to budget effectively, leading to frustration and possibly budget instability.

SaaS buying fatigue

Compounding the problem of dealing with hidden costs and unclear pricing practices in SaaS is the sheer number of applications organizations are utilizing in their portfolios. Peaking at an average of 130 SaaS apps in 2022, organizations are increasingly powered by SaaS tech stacks.

This rapid expansion not only complicates cost management but also exacerbates the issue of unpredictable pricing models, as organizations struggle to accurately forecast expenses and ensure they are getting the full value from each application within such a vast and diverse ecosystem. Buyers may end up asking themselves: Did I buy what fit my needs?

To help alleviate SaaS fatigue (Read: pricing frustrations), we make it easy and predictable to buy our service. Let’s look into how we do things differently at Keepit to make sure our service is always as simple as possible.

How Keepit stands out with predictable pricing

Straightforward seat-based pricing

Keepit recognizes the challenges prevalent in SaaS, and therefore we offer a straightforward solution with a simple, predictable seat-based pricing model. Unlike other SaaS providers that complicate pricing with various add-ons and hidden fees, Keepit’s model is simple and transparent: Customers pay based on the number of seats (users) they need, with all essential features included in that price. You pay one flat fee per user which includes everything.

This approach eliminates the guesswork and ensures that there are no surprises down the road and no consumption calculations to make that are common with data-based pricing schemes. There’s no need to calculate costs or approximate data usage; what you see is what you get.

Easy scaling

As businesses grow, their software needs evolve. Keepit makes scaling easy by allowing customers to add seats without worrying about additional hidden costs. There’s no need to estimate increased consumption, adjust for egress or ingress fees, or worry about restore costs.

This simplicity means businesses can focus on growth without being bogged down by complex pricing structures or unpleasantly surprised by budget-breaking hidden fees or data rehydration or transfer fees. When we sell X number of seats, it’s always this price.

Better value with all features “unlocked”

One of the key differentiators for Keepit is that all features are “unlocked” from the start. Customers don’t need to worry about missing out on critical functionalities: Keepit’s packages include unlimited data storage with no extra fees for storage or retention, unlimited free egress and ingress, unlimited point-in-time restores, and included data encryption — both in transit and at rest.

For example, in SaaS data backup and recovery, the difference between a restore with Keepit versus a restore with a competitor is that with Keepit, you get to skip the most time-consuming part — rehydrating data. All data protected with Keepit is stored as hot tier, with full redundancy through dual data centers, so there are never any transfer fees or rehydrating fees.

There’s also no added cost for unlimited retention and departed-user data is retained without additional charges. This comprehensive approach ensures that CISOs and CIOs have full control over their data without the burden of unexpected costs or compromises in data protection.

No buyer’s remorse

With Keepit’s clear and transparent pricing, customers can buy with confidence, knowing exactly what they’re getting. There’s no risk of buyer’s remorse because the pricing structure is straightforward and all-inclusive. Buyers receive the coverage and capabilities they need, without the fear of hidden fees or surprises. This transparency builds trust and ensures long-term satisfaction with our customers who know very well what’s out there in terms of pricing practices.

Conclusion: Scale confidently with predictable pricing

As businesses continue to expand their reliance on SaaS solutions, transparent and predictable pricing is not just a nice-to-have — it’s essential. Don’t let hidden costs and complicated pricing models drain your budget and trust. Discover how Keepit’s straightforward, all-inclusive pricing can provide the simplicity and confidence you need to scale your operations without fear of surprise fees.

By focusing on simplicity and transparency, Keepit helps businesses future proof their operations, allowing them to scale confidently without the fear of unexpected costs or the frustration of hidden fees, ultimately fostering a more positive and trustworthy software buying experience.

In today’s cybersecurity landscape, ransomware is now a major threat across all sectors, and while prevention is key, effective mitigation is equally critical. That’s where cyber insurance comes into play — it’s an important way to mitigate some of your most significant risks. Let’s look into the trends in ransomware, the state of cyber insurance, and the role of cyber insurance in ransomware mitigation. 

The growing threat of ransomware

I think it’s safe to say that ransomware has evolved significantly over the years. What was once a sporadic threat has now become a persistent and pervasive risk for organizations worldwide. According to a recent ESG (Enterprise Strategy Group) report, “Lighting the way to readiness and mitigation,” 89% of enterprises consider ransomware one of the top five threats to their viability, highlighting the widespread concern that ransomware attacks can disrupt operations, compromise sensitive data, and result in significant financial losses.

One of the most striking trends in the ransomware landscape is the rapid increase in the number of identifiable ransomware groups — not entirely unlike the early days of the automotive industry where a small number of manufacturers eventually grew into a large, competitive market through new entries, consolidation, and expansion.

Similarly, the ransomware market has expanded as new threat actors emerge, gain success, and attract attention. While some of these ransomware groups are eventually shut down, others continue to thrive, contributing to an alarming 55% year-over-year growth in ransomware attacks.

The financial incentive driving ransomware

Just as with other forms of cybercrime, ransomware threat actors are motivated by the potential for substantial financial rewards. When people have a financial incentive to do something bad, they’re often going to do that thing. And since there’s a lower barrier to entry in the ransomware market than ever before — especially when utilizing options such as ransomware as a service (RaaS) — almost anyone with a basic understanding of technology and a desire to make money can participate.

This has led to a proliferation of ransomware groups, each looking to capitalize on the lucrative opportunities that cyber extortion presents. According to a Reuters report, ransomware generated over $1 billon USD in 2023 alone.

Geopolitical factors also play a role in ransomware activity. Some countries are known to harbor, or at best ignore, ransomware gang activities in their countries, and there’s evidence of state-sponsored ransomware attacks, too. All of these attacks share a primary focus: Generating revenue through ransomware.

Looking at the graph above, geopolitical factors seem to be a plausible explanation for 2022 — the year Russia invaded Ukraine — being an anomalously slow year regarding generating ransomware revenue. And in 2023, a historically high peak, representing a 140 percent growth from 2022, according to Statista.

The role of cyber insurance

Because you can’t guarantee that you won’t be able to prevent every attack, cyber insurance has become an essential component of an organization’s risk management strategy. While it is not a substitute for robust cybersecurity measures, cyber insurance helps organizations mitigate the financial fallout from a ransomware attack.

Of US organizations polled, 58% reported either opting in to one or more cyber-insurance policies or planning to do so in the next 12 months to mitigate their ransomware risk.

The cyber insurance market has evolved significantly in recent years. Initially, obtaining cyber insurance was relatively simple; businesses could secure a policy with minimal requirements. However, as the frequency and severity of ransomware attacks have increased, insurance companies have raised their standards.

As a result, there are new hurdles for businesses to overcome. Escalating rates, additional cybersecurity requirements, and limitations in coverage all make it more difficult for many organizations to acquire insurance. More than half of those surveyed have reported difficulties meeting underwriter cybersecurity requirements to acquire a policy. Today, insurers require organizations to demonstrate a certain level of cybersecurity maturity before they can qualify for coverage.

These controls include key items such as multi-factor authentication (MFA), endpoint detection and response (EDR) solutions, and robust backup systems. Put bluntly, you cannot get an insurance policy without implementing the controls your insurer expects to see.

The state of cyber insurance

As cyberthreats continue to evolve, so does the cyber insurance market. As I mentioned, insurance companies are now paying closer attention to how organizations manage data security and privacy, particularly in light of emerging technologies like artificial intelligence (AI). Insurers are beginning to ask more detailed questions about how AI is being used within organizations and how it’s being incorporated into detection and response capabilities.

Moreover, cyber insurance policies are increasingly being tailored to the specific needs of organizations. This includes offering proactive tools that can help organizations prepare for and respond to ransomware attacks. For example, some policies now include coverage for tabletop exercises, incident response planning, and access to breach coaches and specialized vendors.

The importance of a holistic approach to cybersecurity

I want to emphasize that cyber insurance should be viewed as one component of a broader, defense-in-depth strategy. Relying solely on insurance to mitigate the impact of a ransomware attack is not sufficient. Instead, organizations must adopt a holistic approach to cybersecurity that includes strong preventive measures, regular testing, and a clear understanding of their risk landscape.

The importance of communication and collaboration across the organization cannot be overstated. Cybersecurity is not just the responsibility of the IT department; it requires buy-in from the board of directors, management, and all employees. By fostering a culture of security awareness and ensuring that everyone understands their role in protecting the organization, companies can better defend against ransomware attacks.

Conclusion: The future of cyber insurance and ransomware mitigation

Ransomware remains a significant threat, but organizations can take proactive steps to protect themselves. By aligning cybersecurity practices with established frameworks, continuously testing and improving defenses, and incorporating cyber insurance into risk management strategies, organizations can better withstand the challenges posed by ransomware.

As the cyber insurance market continues to evolve, it’s crucial for organizations to stay informed about the latest developments and adjust their strategies accordingly. The ultimate goal is to create a resilient organization that can not only survive a ransomware attack but continue to thrive in the face of ever-changing cyberthreats.