LogMeIn Central Price Hike Ahead

LogMeIn (LOGM) has changed the pricing structure around its LogMeIn Central and LogMeIn Pro offerings, effectively raising prices for the Central offering. The company’s sales staff has been reaching out to accounts to inform them of the price changes, but also came out this week with an official press release and blog post detailing the change.

For one managed service provider who contacted MSPmentor, prices have climbed from $300 two years ago to $800 last year to $1500 now for LogMeIn Central.

New prices

LogMeIn Central’s new posted pricing starts at the following price points:

All versions provide remote access. The Plus version adds file transfer, background access, HD remote access, remote print, and multi-monitor display.

The Premium version adds One2Many automated task management, alerts and monitoring, antivirus management, Windows updates, ticketing integration, computer inventory, advanced reports and analysis, self-healing alerts, mobile access to alerts,  and premium customer support. You can find the full feature list here.

LogMeIn explains the changes

We reached out to LogMeIn to ask about the pricing changes. A spokesman told me that the company introduced three new versions of LogMeIn Central this week, recalibrating what is offered in each version.

“One of the biggest changes with this move is the elimination of purchasing individual seats of LogMeIn Pro (for host computers) separate from Central. Historically, Central customers would be purchasing two SKUs – the Central management console and individual LogMeIn Pro seats, which would be installed on every computer they managed. Our customers regularly voiced concerns around the inherent complexity in that model,” the spokesman said.

“With this change, we looked to simplify that process by taking what had been two separate purchases and merging them into one single SKU and subscription.”

He added that while the change may appear as an increase in Central’s price point, it also represents a reduction in Pro seat pricing.

“For some customers, this will mean an absolute reduction in total costs,” he said. “Others may see an increase, depending on the types of capabilities they are using and the volume of computers managed.”

Remote control: the competitive landscape for MSPs

It’s worth noting that LogMeIn has an exclusive agreement with remote monitoring and management (RMM) platform provider Continuum to provide remote access capabilities for that company’s software.  And LogMeIn’s line up of offerings and capabilities are looking more like an IT services management suite in and of themselves.

Meanwhile, over the past several years, other RMM companies have introduced or announced plans to introduce their own internal remote access tools within their platforms. Kaseya rolled out a native remote control tool with last year’s platform update. LabTech Software CEO Matt Nachtraub teased work on such a tool during his keynote address at IT Automation Nation 2014. N-able already has such a tool.

Remote access/remote control software is an essential tool in any managed service provider’s portfolio, enabling providers to take control of a remote user’s computer, normally to troubleshoot and fix problems. LogMeIn isn’t the only company that offers such tools.

Last year MSPmentor put together this list of some free alternatives to LogMeIn Free after the company pulled the plug on the Free version of its remote access service. Maybe it’s time to update it?

The end of the freemium era?

LogMeIn’s proactive work with customers on this month’s changes could be considered an improvement over last year’s sudden change to LogMeIn Free.

In any case, LogMeIn, which had been a pioneer in the Freemium approach since 2003, appears to be on a path to eliminate free services and convert customers to higher-paying services. In 2013 the company encouraged those who used LogMeIn Free to support larger numbers of desktops to move to Central at a basic price point of $199.

CEO Michael Simon told analysts during a quarterly earnings conference call in 2013 that its “next-gen RMM business” was exceeding expectations for the quarter largely due to a business model change designed to convert users of the free product line into paying users, according to the transcript of the call posted at SeekingAlpha.com. Those are the kinds of reports that financial analysts and the stock market like to hear from publicly held companies like LogMeIn.

And some personnel changes, too

Coinciding with the LogMeIn Central price change, LogMeIn’s new chief financial officer (CFO), Ed Herdiech, started in his new role effective today. His appointment was announced last month. He previously served as SVP of finance and principal accounting officer. He replaces Kim Kelliher who resigned from LogMeIn to join Waltham, Massachusetts-based data management startup Actifio.

Also departing from LogMeIn is Shannon Mayer, who has joined Continuum as senior marketing programs manager.