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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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Email remains the primary attack vector for cyber threats targeting organizations today. In fact, according to Verizon's 2023 Data Breach Investigations Report, email continues to be involved in approximately 74% of all breaches. For enterprise security teams, understanding how email security and anti-phishing platforms are priced is crucial for budgeting and procurement decisions.
This guide breaks down the pricing models, factors influencing costs, and considerations enterprise procurement teams should keep in mind when evaluating email security solutions.
Common Pricing Models for Enterprise Email Security
Enterprise email security solutions typically follow several pricing structures:
Per-User Pricing
The most common pricing model in the industry follows a per-user, per-month (or annual) subscription approach:
- Typical range: $3-15 per user per month for standard protection
- Premium tiers: $15-30+ per user per month for advanced features
- Volume discounts: Most vendors offer significant discounts as user count increases
For example, Proofpoint's Email Protection suite starts at approximately $7-12 per user per month for basic protection, while their advanced threat protection packages can exceed $20 per user per month.
Tiered Subscription Models
Many vendors structure their offerings in tiers with increasing capabilities:
- Basic tier: Essential spam filtering, known malware detection
- Standard tier: Adds URL protection, attachment sandboxing
- Advanced tier: Includes advanced threat intelligence, BEC protection
- Premium tier: Offers targeted attack protection, email fraud defense, security awareness training
Mimecast, for example, offers E1, E3, and E5 packages with progressively more robust features at each level, mirroring Microsoft's licensing approach to simplify procurement decisions for Microsoft-centric organizations.
Add-On and Module-Based Pricing
Some vendors follow a core platform + add-on model:
- Core platform fee: Base email security functionality
- Additional modules: Anti-phishing, business email compromise (BEC), data loss prevention (DLP), email encryption, compliance modules
This approach allows organizations to customize their solution but can lead to cost escalation as modules are added. Barracuda's Email Protection, for instance, offers its core gateway product with additional charges for specialized protection like Sentinel for AI-based phishing detection.
Factors Influencing Enterprise Email Security Pricing
Several key factors can significantly impact the total cost of an email security solution:
1. Organization Size and Email Volume
While per-user pricing is standard, organizations with unusually high email volume may face additional charges or limitations:
- User count thresholds: Price breaks typically occur at 500, 1,000, 5,000, and 10,000+ users
- Email volume considerations: Some vendors charge extra for organizations exceeding certain email volumes per user
2. Deployment Model
The deployment approach can significantly impact both upfront and ongoing costs:
- Cloud-based solutions: Typically subscription-based with lower initial costs
- On-premises deployments: May require hardware purchases, maintenance fees, and higher IT overhead
- Hybrid models: Variable costs based on the specific configuration
According to Gartner, approximately 75% of enterprises have shifted to cloud-based email security solutions due to lower TCO and easier management.
3. Integration Requirements
Integration with existing security infrastructure affects both price and implementation costs:
- Microsoft integration: Deep integration with Microsoft 365 often comes at a premium
- SIEM integration: Connectors for security information and event management systems
- API availability: Access to APIs for custom integrations may require enterprise-tier licensing
4. Compliance Requirements
Organizations in regulated industries typically pay more for:
- Specialized compliance modules: HIPAA, GDPR, PCI, etc.
- Advanced archiving capabilities: Extended retention periods and legal hold features
- Enhanced DLP functionality: Content inspection and policy enforcement
Hidden Costs and Procurement Considerations
When evaluating email security solutions, enterprises should consider several factors that may not be immediately apparent in vendor pricing:
Implementation and Professional Services
- Implementation fees: Typically 10-30% of first-year licensing costs
- Configuration assistance: May be included or charged separately
- Migration support: Moving from legacy systems often incurs additional costs
Training and Change Management
- Admin training: Technical training for security team members
- End-user awareness: Some vendors include basic awareness training; advanced programs cost extra
- Ongoing education: Subscription-based security awareness training
Cybersecurity company KnowBe4 reports that organizations investing in security awareness training see up to a 75% reduction in phishing susceptibility, potentially justifying the additional expense.
Support Tiers
Support levels significantly impact total cost:
- Standard support: Typically business hours only, included in base price
- Premium support: 24/7 coverage, faster response times, dedicated resources
- Managed services: Some vendors offer fully managed options at 2-3x the base licensing cost
ROI Considerations for Email Security Investment
When justifying email security investments, procurement teams should consider:
Cost of Security Incidents
According to IBM's 2023 Cost of a Data Breach Report, the average cost of a data breach now exceeds $4.45 million, with phishing and business email compromise among the most expensive attack vectors.
Operational Efficiency
- Reduced IT burden: Cloud solutions require less maintenance
- Automated remediation: Advanced solutions can reduce manual intervention
- Integration benefits: Streamlined workflows through integrated security stacks
Consolidation Opportunities
Many organizations are reducing their security vendor count:
- Platform approach: Suites that combine email security, cloud security, and endpoint protection often offer better economics than point solutions
- Unified management: Reduced overhead and training costs
Negotiation Strategies for Procurement Teams
When negotiating with email security vendors, consider these strategies:
Multi-Year Commitments
- Typical discounts: 10-20% for 2-year agreements, 20-30% for 3-year agreements
- Price lock guarantees: Protect against annual increases
- Flexible user counts: Negotiate terms allowing for user count fluctuations
Bundle Opportunities
Many vendors offer significant discounts for bundling multiple security products:
- Email security + endpoint protection: Often 15-25% savings
- Adding security awareness training: Typically 10-15% discount on the training component
- Full security suites: Can offer 30%+ savings compared to à la carte purchases
Competitive Leverage
The email security market is highly competitive, with vendors including:
- Microsoft (Defender for Office 365)
- Proofpoint
- Mimecast
- Cisco (Email Security)
- Barracuda
- Trend Micro
- Forcepoint
This competition creates negotiation leverage for procurement teams. According to Gartner, organizations that engage multiple vendors in the procurement process typically secure 15-20% better pricing than those that don't.
Final Procurement Recommendations
When procuring email security and anti-phishing solutions:
- Start with requirements mapping: Identify must-have vs. nice-to-have features
- Consider TCO, not just license costs: Factor in implementation, training, and ongoing management
- Evaluate scalability: Ensure pricing models align with your growth projections
- Request proof of concepts: Test effectiveness before committing
- Negotiate multi-year agreements: Lock in favorable pricing with appropriate flexibility
- Consider consolidation opportunities: Evaluate bundled solutions that might reduce overall security spend
By understanding the various pricing models and cost factors, enterprise procurement teams can make more informed decisions when selecting email security solutions that balance robust protection with fiscal responsibility.