
Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.
The Enterprise Wired and Wireless LAN Infrastructure market continues to evolve rapidly, with the global market expected to reach $44.1 billion by 2026, according to Gartner research. As more network infrastructure transitions to software-as-a-service models, developing the right pricing and packaging strategy has become a critical competitive differentiator. A well-executed strategy not only maximizes revenue potential but also aligns with customer expectations and value perception. This article outlines a comprehensive approach to running a successful pricing and packaging strategy project specifically for Enterprise Wired and Wireless LAN Infrastructure SaaS offerings.
Before diving into pricing strategy development, it's essential to understand the current state of the Enterprise LAN market. The industry has shifted dramatically from hardware-centric to software-defined networking approaches, with managed services becoming increasingly prevalent.
According to IDC's latest network infrastructure forecast, cloud-managed networking solutions are growing at 24.8% CAGR, significantly outpacing traditional on-premises deployments. This shift presents both opportunities and challenges for pricing strategists.
Key market trends to consider include:
Successful pricing projects require input from multiple perspectives. Assemble a team that includes:
Conduct a thorough assessment of your current pricing approach:
Establish specific goals for your pricing project:
Understanding what customers truly value is the foundation of effective pricing. According to a Boston Consulting Group study, companies that conduct thorough value-based pricing research achieve 3-7% higher profit margins than competitors.
Methods to consider:
Customer Interviews: Conduct in-depth discussions with key accounts across different segments to understand what features and capabilities deliver the most meaningful value.
Conjoint Analysis: Implement quantitative research to identify how customers make trade-offs between features, capabilities, and price points.
Win/Loss Analysis: Review sales data to identify pricing patterns in successful deals versus lost opportunities.
Map your competitors' pricing and packaging approaches:
Leading LAN infrastructure providers like Cisco, Juniper, and Arista have each taken distinct approaches to SaaS pricing. For example, Cisco's DNA Center uses a subscription-based model with tiering based on network capacity and feature sets, while Juniper's Mist platform employs a more cloud-native approach with per-access-point pricing combined with add-on service subscriptions.
Choose the right value metric(s) that:
Common LAN infrastructure value metrics include:
Develop a tiering structure that creates natural upgrade paths:
According to research by Price Intelligently, utilizing a three-tier structure can increase conversion rates by up to 30% compared to single-price offerings.
Evaluate different pricing approaches based on your value metrics:
Create comprehensive financial models that project revenue impact based on:
Before full-scale deployment:
For established SaaS products with existing customers, develop a migration strategy:
Equip your sales organization with:
According to Forrester Research, companies that invest in sales enablement tools specifically for pricing changes see 29% faster adoption of new pricing strategies.
Ensure marketing strategy reflects your value-based approach:
Consider a staged implementation:
Define key performance indicators to track:
Pricing is not a "set and forget" exercise. Schedule quarterly reviews to:
Developing an effective pricing and packaging strategy for Enterprise Wired and Wireless LAN Infrastructure SaaS requires a methodical approach that balances value creation, market dynamics, and internal business objectives. By following this structured process—from thorough research to strategic framework development to careful implementation—organizations can create pricing models that accelerate growth while delivering clear value to customers.
The most successful pricing strategies maintain flexibility while providing clarity. As the enterprise networking landscape continues to evolve toward more software-defined, cloud-managed approaches, pricing strategies must similarly evolve to reflect changing value propositions and consumption preferences.
By investing in a rigorous, customer-centric approach to pricing, LAN infrastructure providers can significantly enhance their market position, improve customer relationships, and drive sustainable revenue growth in an increasingly competitive landscape.
Join companies like Zoom, DocuSign, and Twilio using our systematic pricing approach to increase revenue by 12-40% year-over-year.