August 31, 2023
Salesforce is increasing prices for Tableau legacy on-premise subscription licenses by up to 33%. The price hikes are part of Salesforce’s efforts to migrate customers to its preferred SaaS model.
In an interview, Christopher Dixon, a senior principal analyst at Gartner, said that the price hikes are “a long-term risk” for Tableau on-premises customers. He noted that Salesforce has already stopped selling new on-premises perpetual licenses for Tableau, and that the company is likely to continue to migrate customers to the cloud in the future.
Dixon advised Tableau on-premises customers to “decide if your priorities align” with Salesforce’s cloud-first strategy. He said that customers who are happy with their current on-premises deployment may be able to negotiate a lower price with Salesforce. Customers who want to continue using Tableau in the future will eventually need to migrate to the cloud.
Gartner’s Director Analyst Hannah Decker notes that the post-COVID-19 era has witnessed escalating prices, attributed to inflation and labor rate increases, in contrast to the software industry’s historical pricing trajectory.
Though Salesforce’s list prices will rise by an average of 9%, the specific increase for each customer varies. Gartner reveals that some costs may increase more substantially. For instance, Salesforce’s Marketing Cloud Engagement’s “Corporate Edition” base cost jumps by 12% to $4,200 per month.
The sources for this piece include an article in CIODIVE.
